Synopsis: Techno Electric & Engineering Company is in focus after it laid a solid outlook for the future. It is also ramping up its capex expenditure in numerous fields such as data centre, smart meter, thermal, etc.
In this article, we will dive into the details of one of the leading companies engaged in providing Engineering, Procurement and Construction (EPC), asset ownership and operations and maintenance services in the power infrastructure industry, understanding the company’s details like future outlook, order highlights, etc.
With a market capitalisation of Rs 13,626 crore, the shares of Techno Electric & Engineering Company Ltd closed at Rs 1170.50 per share, down 3.3 percent from its previous day’s closing price of Rs 1,211.20 per share. Over the past five years, the stock has delivered a robust return of 448 percent, outperforming NIFTY 50’s return of 102 percent.
About the Company
Techno Electric is a veteran with 40 years of experience in the Indian power infrastructure sector. The company plays a pivotal role in the Indian energy network as it has constructed more than 400 projects in India and abroad, among them are 150+ substations for Power Grid (PGCIL) and has done almost all the works in NTPC power stations.
The company has a data centre agenda topped with a $1 billion investment plan for the FY2030. Along with that, it is undertaking a $700 million project portfolio that includes smart meter installations. The company is without any liabilities, enjoys excellent credit ratings, has $200 million in liquid assets, and is highly trusted by the investors as a result of the major institutional ownership.
TEECL decided to expand its renewable energy business and transmission projects to be able to meet the shifting power energy demand. The company has thus far created green energy assets to the tune of 207 MW, while it has also created transmission assets worth more than $600 m under the PPP model. Most of these projects are carbon credit registered, which shows how the company has been committed to sustainability.
Future Outlook
Data Centers Segment Guidance
Techno’s Hyperscale Data Centre in Chennai has completed the first stage (5MW) and is all set to be functional with a planned inauguration on August 27. The total outlay has been about Rs. 500 crore, with a revenue guidance of Rs. 25 crore for FY26, which is anticipated to go up to Rs. 100–200 crore in the next few years with increasing utilisation. The company anticipates EBITDA margins of approximately 80 percent for a bare rental and 50–60 percent including services and power, which are higher than EPC margins.
Smart Metering Segment Guidance
Techno’s Smart Metering (AMI) business has facilitated the installation of 2.5 million meters through different segments, out of which 0.8 million have already been installed, and the target for the end of FY26 is 1.7–1.8 million.
The company is going through a fast track of 80,000–1,00,000 meters per month, and it is looking at getting the job done by September 2026. With 22.24 crore meters planned under RDSS (~Rs. 2.22 lakh crore capex), Techno is slowly moving and has set a market share target of 3–5 per cent because of the risk of the counterparty.
Thermal & Renewable EPC Segment Guidance
Techno’s Thermal and Renewable EPC business is on the verge of expansion due to the plan of adding 80 GW of thermal power capacity by 2030, which is expected to generate a revenue of Rs. 500 crore per year from balance-of-plant and grid connectivity projects.
On the renewable front, with the country aiming for 500 GW by 2030 (compared to 200 GW currently), the company is optimistic about EPC opportunities in hybrid systems, wind EPC, floating solar, and pooling stations, thereby accessing the industry capex of Rs. 3–4 lakh crore. While the firm is not focusing heavily on FGD (less than 5 percent of its business), the likes of Kota and Jhalawar projects will continue to be secured due to the new policy classifications. Techno Electric recently won a Rs. 1,455 crore FGD order in Kota and Jhalawar from RRVUNL.
EPC Segment Guidance
Techno’s EPC (Transmission & Distribution) business has a bidding pipeline of approximately Rs. 40,000 crore annually and is aiming for Rs. 2,500 crore worth of wins each year over the next four years. The company has won the TBCB concession projects, whose total revenue is worth Rs. 2,800 crore and has an FGD order book of Rs. 1,450 crore.
Despite a slowdown in the sector, the current projects are moving forward smoothly. The management is optimistic about the company’s EPC EBITDA margins, which they anticipate to be around 14–15 percent and remain unchanged.
Order Book and Other Highlights
Techno Electric reported a core revenue of Rs 843 crore in Q2 FY26, a growth of 91 percent as compared to Rs 441 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 60 percent from Rs 526 crore.
Regarding its profitability, it reported a net profit of Rs 104 crore in Q2 FY26, a growth of 11 percent as compared to Rs 94 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 24 percent from Rs 136 crore.
As of 30 June 2025, Techno Electric has an order book of Rs 10,408 crore, of which the majority of orders are derived from its Transmission division with Rs 7,127 crore, followed by Rs 2,192 crore from the Distribution division, Rs 1,027 crore from the Generation division and the remaining 62.4 crore from the Data Centre Division.
As of the capex update, its Capital Work in Progress largely remained nil till FY22, then it has risen significantly from Rs 95 crore in FY23 to Rs 471 crore in FY25, which is itself more than its total fixed assets of Rs 89 crore, signifying an aggressive capex push.
Techno Electric’s capital work-in-progress (CWIP) is rising largely due to substantial investments in the expansion of its data centre. The Chennai Data Centre (Phase 1) only necessitated Rs 450–470 crore and has just been capitalised. Simultaneously, data centres in Mumbai, Kolata and Noida are being constructed, and there is a plan to invest an additional Rs 85–100 crore this year. Besides, the upcoming phases of the Chennai plant will each require approximately Rs 225–250 crore; thus, the company will continue to have a high CWIP for the next few quarters.
Techno Electric & Engineering Company operates in the power infrastructure space, offering EPC services in transmission, distribution, and renewable energy. It handles smart metering, FGD systems, and AMI projects under government schemes. The company is also expanding into AI-ready data centres, making it a key player in India’s energy and digital infrastructure growth.
Written by Satyajeet Mukherjee
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