That this conference is being recorded. Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Nikhil Kumar, Managing Director of TD Power Systems Limited. Thank you, and over to you, sir.
Thank you. Good morning, everybody. Thank you once again for joining us on today's call. I trust all of you would have received our results and investor presentation. Let's move on to discuss the financial performance of TDPS for the year ended 31st March 2026. Standalone. Our full year total income on a standalone basis was INR 17.37 billion versus INR 12.88 billion over the same period in the previous year, an increase of 35%. EBITDA on an annual basis is 18.14%, including other income, excluding exceptional and treasury income, versus 17.46% over the same period in the previous year. Profit after tax and comprehensive income is INR 2.18 billion versus a profit of INR 1.53 billion in the same period the previous year, an increase of 42%.
During the year, the company has provided for the investment for the value of 30 million from the subsidiary DFPS, and with this, the company has provided for 100% of the investment value in its subsidiary. Order book for the manufacturing segment is INR 19.73 billion, out of which INR 16.77 billion is the generator business, INR 2.47 billion is railway business, and spares and aftermarket business is INR 0.2 billion, Turkey is INR 0.29 billion. Exports and deemed exports, excluding railway order, continues to be around 76%. Order inflow statistics. Order inflow during the quarter is INR 6.66 billion, an increase of 61% on a Q1Q basis on the previous year. Current year, the order inflow is INR 22.38 billion versus the previous year, INR 14.78 billion, which is an increase of 51%. Export order inflow, including deemed exports during the quarter, is 80% of our total, which is INR 5.28 billion.
Full year order inflow from direct and deemed exports is INR 17.33 billion compared to INR 9.85 billion in the previous year, growth of 76%. 79% of our total order inflow for the year is exports, while 21% is domestic. An important point to note is the growth in the pending order for the year FY 2026 for generators and motors is 66% compared to FY 2025. Consolidated basis. Our total income on a consolidated basis is INR 18.78 billion versus INR 13.02 billion, an increase of 44%. Profit after tax and comprehensive income for the year is INR 2.36 billion, versus the profit of INR 1.73 billion, an increase of 36%. We continue to maintain a strong cash position of INR 1.99 billion. We come to the order book, market situation, and guidance. Market conditions and guidance. In general, we see a very buoyant market for TDPS in all segments of the business.
The basic factors that are driving growth continue to play out. AI data centers, grid stabilization, basic power generation, push towards renewables, which drive demand for geothermal, hydro and waste to energy, et cetera. With all sectors in full force, we see a very strong order inflow situation continuing, and the focus right now is on execution. While our manufacturing plants in India are not affected by the war, since we do not import from the Middle East and most of our contracts for our completed products are Ex Works, unfortunately, one of our contracts in Turkey got affected by severe shipping delays of one lot of components on one ship from India to Turkey, and we had to take a high LD penalty on one of our contracts. This has reduced the margin for our contract.
This is a one-off event, the customer also was exceptionally brutal with us. However, we put that behind us, and now we are heavily focused on Q1 execution, where based on the progress so far, we see that we will do better than Q4 of last financial year. Now let me come to the segments one by one. Steam turbine. The market continues to grow as we predicted, with no surprises both on the upside or the downside. The market is steady with around 10%, 12% growth taking place in captive power plant business, biomass, and waste heat recovery. Gas turbine and gas engine business. The massive growth in this segment continues to roll on without pause. As mentioned in the investor presentation, we are getting large volume orders, and the forecast for next year continues to show strong upward growth.
I say next year, I mean not just this year, but also for next financial year, which is FY 2028. Growth is expected since our engine and turbine customers are also adding capacity, and these incremental numbers are resulting in demand for more generators. Notable orders are delivery to projects such as SpaceX, amongst others. Hydro. We have a busy year ahead of us. This year will be one of the highest years for TDPS in hydro. TDPS is very active in the refurbishment business in India and abroad. This segment will result in some high-value order wins for TDPS in this quarter and next. Motors. The motor business remains a key focus area for us. However, during the year, last year, we prioritized high volume generator opportunities given strong export demand. We are now separating manufacturing lines, which will improve focus and execution.
We expect the motor segment to stabilize, we see improved traction going forward. Railway, we have nothing new to report. We have orders from the U.S. market, Europe market, and Russian market. In addition to the Indian market, we will be supplying to all the three markets next year, and if one includes India, it is four markets. Finally, I come to the guidance. We revise our guidance for FY 2027 at INR 2,400 plus growth, with an extremely high probability to increase our guidance further to match the rate of order inflow that we saw in Q4, and that what we expect in this financial year from Q1 to Q4. This brings me to the end of my initial remarks. I will now be happy to address any questions that you may have. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take the first question from the line of Mihir Manohar from Trust Mutual Fund. Please go ahead.
Yeah. Hi, thanks for giving the opportunity. Congratulations on great set of numbers. Well, fantastic numbers. Mainly wanted to understand only the generator side, large generators. We are talking over here, we have talked about capacity expansion over here. If you can provide some details as to which will be the end user application areas, and what sort of customers would be there. Would those business be having higher margins? Typically large generators would end up having more people on the competition side. Some color around that will be helpful. When we say CapEx, how large would be this CapEx and what kind of potential revenue can one expect from large generator business?
Yeah, these are very good questions. I'm afraid I'm not going to be able to give you detailed answers for all these questions, all the questions are very valid questions. I think in about two or three months from now, I will be happy to answer all these questions in full detail. In general, what I can say right now, that also alludes to the comments that I made in the investor presentation, is that we are now putting a lot of focus on the large generator business where we see our projections and our demand situation and our positioning in this market improving to the point where we need to take decisions to add capacity.
When I say this, when we put up the large generator capability in 2012, 2013, we had put up the complete capacity for manufacturing the stator line, we had limited the investments in the rotor side because of the drop in the market demand 15 years ago. Now, we need to make up that gap. We are now ready to invest heavily in manufacturing the rotors completely. We need big machining capabilities, especially for larger machines, maybe all the way up to 200 megawatt size. This total amount of investment, we will discuss it in about two or three months to put into place the business plan, the numbers. We just wanted to give an advance intimation to the market that this is going to happen from TDPS side. It's the initial intimation that's going to happen. Details will be given later.
End user markets, I can just generally talk about it. It's going to be mainly export. This would range once again, the basic end markets will be the same as what it is for our larger generators, let's say 40, 50 MW size. Once again, we'll be focusing on power generation. We're focusing on larger AI data centers where we see a lot of demand now will be in the future. It will shift to the larger sizes because it's definitely more efficient. We're also looking at combined cycle applications where large gas turbines would need a steam turbine for the combined cycle for higher efficiency. We are in a position now, we are in a fairly strong position in terms of taking those decisions that, yes, we need to put the money on the table to put up the capacity, and the market is large.
What we can do, exactly what we can do and what we expect in terms of our ramp-up on the business plan, all these questions will be answered in the next quarter. Yes, as I said, all the questions are good ones, and I'm sorry today I'm not going to be able to address these with specific answers, but the situation is looking good for the company.
Sure. No, fair point. Just last question on the gross margin side. Gross margin has contracted year-over-year, why? You mentioned there was a one-off. If we clarify it, will we see a reverting back margins, gross margins going to say 35%-36% kind of range?
Our gross contribution margin on a consult basis has been hovering between 33%-34% on an average. Let's say 34% on an average. We are about 3% down from that in this last quarter. We had a one-off event where we had a big contract from Turkey where we delayed generators because of component deliveries from India, which got stuck midway and could not get delivered for almost one and a half months. We took a big hit. We put that behind us. The customer also was pretty brutal with us. It's a one-off event. We don't have this kind of shipping in our scope in the future, we don't expect this to happen once again. You can expect gross contribution levels to move back to the average historical levels.
Sure. Thanks. That's it from my side. Thank you very much.
Thank you. Next question is from the line of Mohit Surana from Monarch Networth Capital. Please go ahead.
Sir, just one follow-up question to the previous one.
Sir, these are the large players already in the global market who are manufacturing these larger capacity generators.
Siemens is the global leader by far. You have Baker Hughes after the acquisition of BRUSH. They are very big in this business. These are the two big players on the western side, and then you have on the Japanese side, of course, you have Mitsubishi, Fuji Electric, Toshiba. All these players are big players.
Got it, sir.
The big energy companies, yes.
Got it. Sir, our move to enter into this larger capacity generators, will this also serve the nuclear power segment, the SMR, small modular reactor, where the generators will also be required. Will this cater to that segment as well?
It will definitely, the sizes would be appropriate to that segment. It depends what you classify as being small. Right now, people are talking about 250 megawatt to be small. We are focusing our business around, say, we're capping it around 200 MW range. If SMR comes in 200 MW range, yes.
That's good, sir. That's all from my side. Thank you so much. Congratulations on the good set of numbers.
Yeah, thank you.
Thank you. We'll take the next question from the line of Seth Sohrab Gujar from ICICI Prudential AMC. Please go ahead.
Yeah. Thank you for the opportunity. Sir, just one question on the capacity front, considering our order book has been growing more towards the export piece of it and focusing on gas side. Considering that, from the current capacity, how much of it peak revenue could the current capacities handle it?
This year, we have a plan to invest around another INR 50 crore in CapEx. Okay? In addition to whatever we did previously. This INR 50 crore, once again, will go towards adding incremental capacity in certain areas which we consider to be bottlenecks. We'll be investing approximately the same amount next year also in a little bit more automation and again, debottlenecking certain capacities and adding small capacities in certain areas. INR 50 plus INR 50, say, this year and next financial year. This is not including the investment that we will have to make for the larger generators. That will be taken as a separate piece. Now coming to your question, we believe that we can go up to about INR 30 billion-INR 32 billion with our current capacities and with these incremental investments made this year and next year.
We are basically covering what we believe we can do as sales for up to FY 2028.
Sure. Thank you. Bye.
Thank you. Next question is from the line of Nitin Arora from Axis Mutual Fund. Please go ahead.
Hi, Nikhil. Thanks for giving the opportunity. Just on the supply chain part, like for example, you gave one of your plant example. From this data center opportunity, where are you seeing the execution delays, let's say from a turbine makers? I'm just trying to understand that given the demand is so high, you have given the guidance for this year, generally, do you see any supply chain challenges, any issues from the turbine makers it's taking more time, so eventually one, two quarters, there might be some delays in the revenue side or the supply chain challenges side? If you can throw some light on that.
Actually, it's just the opposite of what you're saying. Completely the opposite of what you're saying. It's been 180 degrees reverse. We have our turbine customers and our engine customers monitoring on a weekly base, twice a week basis, our deliveries, are taking the machines as soon as they're ready. We are being very, very stringently monitored on execution. Even like a three-day delay, four-day delay is being severely questioned by us, by our customers.
Got it.
It's a totally reverse situation. There's a lot of execution pressure from our side, and we are not having a single machine sitting in our shop waiting for it to move to the customer. On the gas side.
Got it. Great to hear that. Just last question from my side. On the client addition part, barring, let's say, the Baker Hughes or GE, how do you see the pipeline here? Do you see more outsourcing going forward given global guys are getting chock-a-blocked completely? Do you see that case of upsizing only over the next two years, or do you think now Whatever the orders have been come, have come. They will also see how the ramp-up happens and the next cycle of ordering starts happening after one year. Just on the direction side for the next two, three years, how are you seeing it?
First of all, there are a limited number of prime mover manufacturers in this business, right? There's no possibility for new entrants in this business. This market is now completely determined by the capacity on the prime mover side. When I say prime mover, I mean engine and turbine side. If, let's say there are X number of engines, then you need X number of generators. If it becomes X plus something, then you need X plus something on generators. This is what's happening now. Our turbine customers, engine customers are, on an average, planning to double capacity by 2030. Some a little bit more, some a little bit less. But you can say everyone's doubling capacity by 2030 and bringing it in, doing it in steps.
From this point of time, we'll be seeing incremental improvements in our outputs also to match with the larger number of turbines and generators which are coming in. Sorry, turbines and engines which are coming into the market. This is in general, as what I can say is a trend. Of course, on a year-by-year basis, there could be little bit ups and downs, but in terms of the investment decisions and the momentum of this whole capacity addition from the prime mover side, that's something which is already in play. I don't think that's going to come to an end because Or that's not going to stop because these are huge companies, very large organizations. Once they start doing something, they don't stop. They just go through it.
Getting it. That's helpful. Thank you, Nikhil, for this.
Thank you. Next question is from Ganeshram , from Unifi Capital. Please go ahead.
Thank you for taking my question, Nikhil, and congratulations to the team for the performance.
Hi, Ganesh. How are you?
Hi. Thank you. Yeah. Nikhil, just to be clear, because of the escalating commodity prices and because of in certain alternatives, for example, there have been some disruptions because of gas availability, et cetera. Just to be sure, are we facing any impacts from this, and do we have to do anything to mitigate it?
One is increasing commodity prices. It's been pretty drastic on copper. Our hedges are now running out. We are in this phase over period where there are new prices which some of our customers are taking in, some of the prices are not taking in. Overall, I think our margins are going to be generally stable because with the high export exposure that we have, there's a certain amount of benefit that we also get from the devaluation of the rupee to the extent of maybe the valuation that takes place in India. We also import a lot of materials, those are kind of currency neutral from our point of view because we import in dollars and euros and then we have to export in dollars and euros. Overall, I would say neutral, Ganesh.
There is no doubt that the commodity prices are like at, say, copper at $14,000 is high. The increases in prices that we have now, talking to some of our customers, are also now approaching double-digit levels. Let's see how it plays out, but I see for the next two, three quarters, I don't see any major disruption to our margin guidance.
Okay, Nikhil, that's very helpful. You've already ramped up production to about INR 590 crores this quarter. When I look at the employee expenses, they've been largely stable quarter-on-quarter. I just wanted to get an understanding on how we should expect this to move next year as you ramp up.
We have largely employed everyone that we want to. There could be incremental increases, but no major increases taking place from this point onwards.
Okay. That's clear. Just my last question is, I think last time we discussed that you were in conversations with a larger OEM and there was also a prototype submitted on the higher megawatt. I know we're not expecting revenues anytime soon, but any updates on how the prototypes are performing and how the conversations are evolving?
No, I'm not going to answer that specific question, but I think you have to refer to the overall remarks that I've made about the larger generator business in the earlier part of this call, Ganesh.
Yes.
I think you have to look at it from that perspective instead of a specific customer perspective. We are going to be making the investments to get into this market in a big way and start supplying into this market in a big way. The only thing I can say, which I did not say a little bit earlier, which I have to give a little bit of caution, is that the investments that we have to put in for these large machining capabilities, let's say large lathes or large machining centers and so on and so forth, those will take 15 months right now under the current environment to buy and to install. Between 15-16 months. As I mentioned a little bit earlier, everyone's expanding, right? Everyone on the prime mover side is expanding. All the machine tool manufacturers worldwide are full with orders.
We are basically coming into this capacity expansion thing on our larger generator a little bit late compared to others. We have to wait. The earliest that we can put in a complete capacity would be something like in calendar 2027. We'll be looking at the big ramp-up taking place in our large generator business only in calendar 2028. Meanwhile, we'll continue to supply with whatever existing capacity that we have. We have started making commitments to the market on our larger numbers from calendar 2028 onwards, which would basically be FY 2029.
Got it, Nikhil. Thank you, and good luck for the rest of the year.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure management is able to answer queries from all participants, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. Next question is from the line of Mayank Chaturvedi from HDFC. Please go ahead.
Yeah, thanks for the opportunity, Nikhil, and congratulations on the big set of numbers. On these larger generator piece, is the technology and the capability being driven by the U.K. R&D centers that we had started setting up a year back?
Yeah. Very much.
Okay. Will there be any royalty or any sort of payments to that entity? Just thinking out loud there.
It's our 100% subsidiary company.
All right. Does the customer profile change with larger generators?
Yes and no. It's the same set of customers buying larger machines. See, everyone prefers to buy larger. Basically, end users prefer larger machines because they are more efficient. Today, there is a limited number of larger machines available. That's why they are forced to buy the smaller machines. In general, larger machines are more efficient, far more efficient than smaller machines. That's the preference on the customer side always.
All right. Yeah. That's it from my end. Thank you.
Thank you. We'll move to our next question from the line of Karan from Jetha. Please go ahead.
Yeah. Hi, can you hear me?
Yes. Can you use your handset mode, please?
Okay. Thanks. One of the large customers of generators, INNIO, that works with VoltaGrid, recently filed a number of perspectives. They said they want to triple capacity.
I'm sorry to interrupt, Karan. Can you use your handset mode, please?
I can hear him. It's fine. He can continue.
All right. Please go ahead.
You said they want to triple capacity. I just wanted to understand how that dovetails with your plans. I think you said double capacity by 2030.
What I said exactly, Karan, was I said that on an average it is double. Some more and some less is what I said. Okay? I know about INNIO's plans to triple, but I didn't mention any specific customers. I said on an average it's double, and I said some are more and some are less.
Okay. Your share of wallet on average across the doubling of capacity that is happening can be assumed to be going up?
We have a very specific forecast and a capacity agreement signed with INNIO, where it goes up to 2030. I'm not going to disclose those numbers with you, but it's extremely exciting for us, and we are very deeply plugged in with this customer.
Yeah. I guess my broader question is, are you gaining share across the group? If so, why?
No. I'm not going to answer that question. We are deeply plugged in with INNIO in their capacity expansion. We have a capacity commitment agreement signed with them, and the numbers are extremely good for us.
Got it. Congratulations. Thank you.
Thank you. Next question is from Aditya Trivedi from Nepean Capital. Please go ahead.
The question I had was that with global gas turbine, all the gas turbine OEMs taking price hikes, given the kind of demand that they have and order backlogs, are you seeing that kind of pricing power emerge in the specialized generators? Could that lead to a sustainable gross margin expansion for TD Power?
It's difficult for us to get better pricing than what we currently have, Aditya. We have decent pricing. We have currency tailwinds. We have price variation clauses for raw material variations. We're not going to make the same kind of money that the turbine guys make. That's clear.
Okay. Another question I had was on the nuclear side. You all have got orders from NPCIL for induction motors. India proposes 100 GW nuclear target by 2047. What is the competitive landscape in terms of OEMs that have qualified to supply induction motors to NPCIL and do you see this as a big revenue growth vector for TD Power going forward?
NPCIL ordering is, while there's a huge number in terms of gigwatts, which is planned, the actual ordering and implementation is slow, and it tends to be choppy. I can't put a number on it because the process for nuclear power plant construction is very slow. New capacities will come online. It's not going to happen in a big bang approach. Market is large. There are also domestic competition. There's BHEL, there's Crompton, and there are also imports. It's not like we have a monopoly in this sector. It's competitive.
Okay. Got it. Thank you. That's it from my end.
Thank you. Next question is from Akshay Jogani from Xponent Tribe. Please go ahead.
Thank you for the opportunity. Sir, congratulations on the great set of numbers. What I wanted to better understand, when you spoke about aeroderivative engines or you wrote about it in the last presentation on a prototype version with one of the customers. Could you give some update on what's happening there, in terms of what is the progress we've made?
Yeah. I think Ganesh asked the same question a few minutes ago.
Oh, my apologies. Okay, sure. No, thank you so much. Yeah.
Yeah. Thanks. I just answered the same exact question.
Yeah.
I'll stick to whatever I told Ganesh a little earlier.
Sure.
Thank you.
Sure. Thank you. That's it. Yeah.
Next question is from the line of CA Garvit Goyal from Serene Alpha. Please go ahead.
Hi. Am I audible?
Yes, please go ahead.
Hi, good afternoon and congrats for the good set of numbers.
Thank you.
First question is on the trade receivables part. We are seeing the growth in the trade receivables is outpacing the top-line growth. Is there any specific reason for that? How much of the outstanding trade receivables on 31st March are recovered till now, sir?
Varalakshmi, can you take this question, please?
The outstanding credits have been completely covered.
INR 7 crores receivables are completely covered. Is that what you are saying?
Yeah. Yes.
Understood. Secondly, on the cash flow conversion, how is it going to be going ahead? Most part of the billing will be the end of the financial year itself, or we will be looking to improve that?
No. Actually, can you clarify your question?
I'm just trying to understand.
I don't understand
Conversion of EBITDA into CFO. I am seeing it 21%. How we are looking to improve the cash flow conversion?
Improve the?
Conversion of EBITDA into CFO, cash flow operating activity.
Yeah, that will happen. See, we are growing, so we need to build inventories and all, and those inventories will get built during the quarter. These are short-term size orders, so we need to have lot of inventory. They get converted into cash flows in the next quarter.
Understood.
I think we just have to look from the perspective that we did INR 18 billion last year. Now we are projecting INR 24 billion plus. All our retained earnings are basically going into working capital.
Understood, sir. I think that is from my side, sir. Thank you very much, and all the best for the future.
Thank you. Next question is from the line of Ayush D. from Shravas Capital. Please go ahead.
Yes. Hi. Congrats on the good set of numbers. I just had one question on the domestic steam turbine segment. If you could just give us some color on what would be the growth for this year in terms of the commentary you had with the customers.
Vinay, can you take this question, please?
Yes. Hi, Ayush. I am Vinay. Domestic steam turbine market is growing steadily and as we have told in the presentation, we are expecting 10%-12% growth. The sizes of the machines are shifting to the largest, from 30 MW up to 60 MW range. We are seeing a steady growth, 12%+ per year.
Hello, Ayush.
Yeah. If you could just help us with what percentage of revenue comes from this segment?
This segment on the overall turnover of TDPS?
Yes.
Steam turbine is around 25%.
Understood. All right. Thank you so much. All the best.
Yeah, welcome.
Thank you. Next question is from the line of Soumil Jain from Lucky Investments. Please go ahead.
Soumil, thanks for the opportunity. Just to clarify, sir, did you mention that 25% of revenues come from steam turbines? Sorry to be repeating on this.
Yes, you're right.
Okay. Could you give similar numbers for gas turbines and gas engines, each of them?
I don't know whether.
Actually, generally, we don't give the target because it changes year-to-year, quarter-to-quarter.
Sure.
Usually schedules from the customers could have skewed. We don't want to give explanations every quarter as to why something we did more or something we did less. Generally, we don't prefer to give these numbers.
Absolutely. On the large generator side, is there a particular anchor customer that you have very high confidence on.
All questions after three months, please. I'm not going to be able to give more details than what I gave, except that we are going ahead with this plan.
Sure. In the presentation, you mentioned that you received volume orders for gas turbines. This will be small generator then?
These will be below 50 MW range, yes.
Okay. Finally, can you give us a broad sense of what your typical RM basket looks like? Just a broad sense.
RM basket. Copper, forgings, electrical steel, mild steel, insulating materials.
What will be the share of copper in our.
I'm sorry. Sorry, can't.
Okay. Thank you so much. Thank you for the opportunity.
Thank you.
Thank you. Next question is from the line of [Vivek Gautam] from GS Investment. Please go ahead.
Yeah. Congratulations for excellent numbers. There are many investors who have just started tracking the company, so don't mind the questions. Just wanted to understand the opportunity size and for our sector, especially in AI and data center play. How long can it go up, and how sustainable are the numbers? Our differentiator, especially this collaboration we started out, and how is it differentiating us? Thank you.
The AI data center market, the power requirement of the AI data center market for U.S. alone is projected to be somewhere around 100 GW in size. The expected timeframe to address this installation of this capacity is going to take five to seven years. This is only the U.S. market, and there's other parts of the world which are also going to be adding data center capacity. This number could well go up to at least double the size. There's going to be a fairly long cycle in terms of capacity or the power requirements from the AI side. This is only AI. Of course, there is the traditional power generation. There's oil and gas, there's renewables, waste-to-heat energy. There's hydro, there's geothermal.
Yeah.
There are a lot of opportunities right now for the company in different segments of the business. Today, of course, AI is the most exciting part of the market, we're not ignoring other parts of the market.
For our differentiator, sir,
We have been working with these engine and turbine OEMs for a long time. This is not something. When this boom started and our turbine and engine customers were in the middle of it, getting large amount of orders. Since we had established long relationships with them, we also were in a position to get benefited from this boom, let me put it that way. What is our differentiators? We have had long relationships with these customers, and our differentiators is high quality, on-time deliveries, extremely good service network, of course, we offer very competitive pricing. We built these relationships over a decade or more, we continue to grow and deepen our relationships with these customers.
Our Turkey plant, is it helping out in any way due to the demand, big demand? Are you planning to mark out
Turkey is only for Turkey, and we have small orders over there, and we continue to use that plant primarily to make these small machines only for the Turkish market. As a backup, it also serves as a service shop for us in case we need to use that facility to address our larger population of machines in the European market.
I remember there was an incident
Thank you, Vivek. I request that you join back the queue, please. Thank you. Next question is from the line of [Nishita Shanklesha] from Sapphire Capital. Please go ahead.
Yes. Hello. I had a question on the order books. Currently we have around INR 19.7 billion worth of order book. What will be the execution timeline for this, and how do we see order book growth in FY 2027?
Vinay, take this question, please.
One moment, sir. His line is disconnected. One moment.
Okay. All the INR 2,000 crores or whatever is there in the pending order will be executed this year. Order book growth. We have not given the guidance for next financial year, which is FY 2028 as yet. We're seeing a growth in our quarter-on-quarter inflow numbers. The growth, I think on an average, we can say conservatively, we'll definitely be able to grow 20%-25% even next year over this year.
Okay. Understood. Next, I just wanted a clarification on the revenue guidance. I don't know whether I heard it correctly. You mentioned that in FY 2027 we can do around INR 24 billion of revenue and by FY 2028 we can reach INR 32 billion. Is that correct?
I said that we have a capacity to address INR 32 billion for FY 2028. Yes, that is where management is also expecting numbers to be on a conservative basis.
Okay. INR 24 billion for FY 2027, right?
Yes. That's the number for 2027, INR 2,400 plus .
Perfect. Our margins would be in line with what we've done in FY 2026, just better because excluding the one-off event in Turkey?
Yes.
Okay, perfect. Thank you so much.
Thank you. Next question is from the line of Nakul Gupta from Shikherjee Advisors . Please go ahead.
Thank you so much for the opportunity. Really congratulations for great set of numbers. My only question will be, what are the major challenges you face in the business? What are the major risks you see going forward that would be detrimental to better achieve the numbers?
We are under tremendous execution pressure at the moment. The factory is running very full, and this kind of very high capacity utilization always presents the risk that if there are breakdowns in any of the production equipment, then you would have production delays. We have a lot of total preventive maintenance, and we have a lot of things that we do in our factory to avoid those kinds of things. If you ask me about the risks, high factory utilization is always a high pressure event for everybody. That's where we are, and that's where we'll continue to be. We don't see the situation changing for us at all. This is a new normal for us, and we have to deliver, and we will deliver.
Okay, nice. That's all for now. Thank you so much.
Thank you.
Thank you. Next question is from the line of Mohit Surana from Monarch Networth Capital. Please go ahead.
Sir, one basic question with respect to how many generators are required per turbine. Is it always a one is to one ratio or one turbine can have, say, more than two, three generators? What's the general industry trend?
One turbine, one generator. One engine, one generator.
Understood. Sir, next question is with respect to your hiring of a new CEO for the first time in TD Power. Sir, what capabilities he brings to the table and what kind of vision we have? I think it's mainly with respect to the larger capacity generators, right? If I'm not wrong, sir.
No, Deepak is here on this call. Maybe it's a good time to introduce Deepak. Deepak is on this call. He's joined as the CEO of the company. He's not been brought in just to look after the large generators. Of course, he's come from L&T Mitsubishi, which makes the large generators in Gujarat.
He has a strong background with the large rotating machines. Previously he has worked in GE, and he has got extensive experience also with the smaller machines. Deepak is going to come in as a number two in the company, and his role is to be in charge of all the activities of the organization and to assist me with the growth of the organization. I'm really happy to have him on board. Deepak, if you maybe would like to say a few words right now is a good time since people have asked about you. Hello?
Sir, I cannot see anyone with the name of Deepak connected.
Okay, Deepak is not in the call. Right. Okay. Maybe he logged out. That's the background about Deepak. I've been saying this in various investor meetings one-on-one basis. TDPS is definitely moving towards professionalizing its management. As we grow, as we scale up, as we get into different kinds of businesses, we need to have top professionals in our organization to manage the business in the future. Increasingly, we will see more professionals coming in, high quality, highly capable people coming in at the senior management level to take on larger roles in the organization, to build the systems, to make the company more efficient, and to organize ourselves better for the growth that's taking place. This is a process which is going to accelerate as far as we are concerned, and you will see in the future that we'll be doing this more.
That's the direction in which the management is going to go. It's going to become a professionally managed organization in the future.
Perfect, sir. Thank you so much. That's a great strategic move and very happy to hear this. I wish you all the best.
Thank you.
Thank you. Next question is from the line of CA Garvit Goyal from Serene Alpha. Please go ahead.
Hi. Thanks for the follow-up. Sir, although you answered it before, maybe I will add this back. On the margins front, considering the cost impact we are seeing right now on the commodity side, although you mentioned two to three quarters we will not be seeing any impact. Structurally, how is it going to impact our margins? Have you any view on that, sir?
We have built-in protections into our margins as much as we can. That means one is through hedges, raw material hedges, through price variation clauses with our customers. When there's a sudden squirt in commodity prices, like say in a week or 10 days it goes up by let's say 10% or 15%, whatever you do is not going to be enough to protect yourselves against those squirts. Customers are not going to react by changing prices like in a week or 10 days. You have to buy materials. The hedges will give you some kind of buffer for some time. At some point of time, if those prices persist in the market, then once those hedges run out, then you need the higher prices from the customers. As I said, there could be some small lag.
I also said that we have some tailwinds from the foreign exchange side. Overall, I expect us to be fairly neutral, and I don't expect a big impact on the margins. If the commodity prices again go up in a big way, another 20%, 30%, then we have to see what we have to do.
The current situation is manageable, that's it?
The current situation is manageable.
Thank you, sir. Thank you very much.
Thank you. Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to management for closing comments. Over to you, sir.
Yeah, thank you everyone for joining us on this call. If you have any further questions, please feel free to get in touch with our management team. I look forward to interacting with you and meeting many of you face-to-face in some investor conference. Thank you very much.
Thank you. On behalf of TD Power Systems Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.