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TD Power Systems Shares Jump Over Nine Percent After Net Profit Doubles and Dividend Announced

Reported by Harshdeep Singh (Fact-Checker) · Livemint - Markets ·

Source: Livemint
Important
TD Power Systems Shares Jump Over Nine Percent After Net Profit Doubles and Dividend AnnouncedPhoto: Wikimedia Commons

Shares of AC generator and electric motor maker TD Power Systems jumped over nine percent on Friday, November 13, after the firm reported strong financial results for the July to September quarter. The company's board declared an interim dividend of zero point six five rupees per share with a face value of one rupee each for the financial year ending March 31, 2027. The record date for shareholder eligibility is set for November 18, and payment will happen within thirty days. Consolidated net profit for the second quarter of financial year 2027 more than doubled, rising 105.58 percent year-on-year to 123.74 crore rupees compared to 60.19 crore rupees in the same period last year. Revenue from operations grew 85.94 percent to 841.31 crore rupees from 452.46 crore rupees. Earnings before interest, taxes, depreciation, and amortisation climbed 110.11 percent to 174 crore rupees, while the operating margin expanded to 20.63 percent. Total expenses increased 79.85 percent to 675.77 crore rupees, driven mostly by higher raw material costs of 630.11 crore rupees and employee benefit expenses of 61.66 crore rupees. Order inflows remained very strong, exceeding 750 to 800 crore rupees per quarter. Following these results, the firm upgraded its revenue guidance for financial year 2027 to a range of 2,900 to 3,000 crore rupees. The stock reached an intraday high of 685 rupees on the BSE following the announcement. Despite these gains, the share price stays about 20 percent below its 52-week high of 856 rupees touched in October 2026, while its 52-week low was 301.80 rupees in January 2026. Brokerage firm Monarch Networth Capital maintained a hold rating on the stock with a target price of 756 rupees, noting that exports and demand from artificial intelligence and data centres will drive future growth.

Context

Strong order inflows and upgraded revenue targets often signal healthy demand in the manufacturing and industrial sectors. Companies in power equipment benefit directly when global electricity needs rise due to new technology infrastructure like data centres.

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