Q2 FY27 results analysis · November 12, 2026
Techno Electric & Engineering Company Ltd (TECHNOE) Q2 FY27 Results Analysis: EBITDA Surges 63%, Cash Conversion Stays Weak
+52.3%PAT year on year, Rs. 158.40 Cr
Source: Quarterly results filing (BSE)
Quick summary
Techno Electric & Engineering Company Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,107.90 Cr (+31.35% YoY) and PAT growth of +52.34% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,107.90 Cr (+31.35% YoY) |
| PAT (Q2) | Rs. 158.40 Cr (+52.34% YoY) |
| EBITDA margin | 16.37% (+318 bps YoY) |
| EPS (Q2) | Rs. 13.62 (+52.35% YoY) |
Quarter Snapshot
Q2 FY27 consolidated revenue grew 31.35% YoY to Rs.1,107.9 crore with EBITDA up 62.97% and margin expanding 318 bps to 16.37%, while standalone results landed within management's 13-14% margin guidance and ahead of the FY27 revenue run-rate benchmark. Working capital improved with receivables down 5.71% despite 26.93% H1 revenue growth, and the balance sheet holds ~Rs.2,268.7 crore net cash. Watch items are weak consolidated cash conversion (0.19x PAT), Rs.89.6 crore of unprovisioned overdue receivables flagged by auditors, and the stretch FY27 EPS target of Rs.60 requiring +57.66% H2 growth.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely in-line to ahead" vs ~Rs.958 Cr derived Q2 benchmark | Q2 standalone Rs.1,096.8 Cr, +14.49% above the benchmark; consol +31.35% YoY | Played out |
| Margins | "tilt the margin leg toward the lower end of the 13–14% band" | Standalone 13.45% Q2 / 13.61% H1 — within band; consolidated margin expanded to 16.37% (+318 bps YoY) — SA); Partially (consol expanded beyond the framing | Played out |
| Funding cost a tailwind | finance costs down YoY | Standalone finance costs −27.35% YoY to Rs.11.9 Cr | Played out |
| Eshanagar monetization (watch item) | confirm Q2 closure, proceeds, P&L treatment | Nothing disclosed anywhere in the filing — remains open for the call | Not observable |
| Margin bridge vs band (watch item) | "watch whether Q2 FY27 margins hold in the 13–14% band" | 13.45% Q2 / 13.61% H1 standalone | Played out |
| Revenue run-rate & order intake (watch item) | Q2 vs Rs.958 Cr; intake vs Rs.4,000 Cr | Revenue played out; order intake not in the filing — revenue); intake open | Played out |
| Smart meter / DC disclosure (watch item) | completion %; early DC P&L disclosure | Neither disclosed; no segments reported — remains open for the call | Not observable |
| Pre-registered one-time: Eshanagar P&L swing | "a one-off that can swing standalone PAT" | Only quantified one-offs are the Rs.3.5 Cr + Rs.8.7 Cr gains (H1); no Eshanagar amount confirmed — nothing locked from the expectations note | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 standalone revenue Rs.4,000 Cr+ | Q4 FY26 / Q1 FY27 earnings calls | H1 Rs.1,738.46 Cr = 43.46% of target; Q2 Rs.1,096.8 Cr (+14.49% vs the Rs.958 Cr H1-split benchmark) | On Track |
| FY27 EBITDA margin 13–14% | Q4 FY26 earnings call | Q2 13.45%; H1 13.61% (standalone) — within band, lower half | Met |
| FY27 standalone EPS Rs.60 | Q4 FY26 earnings call | H1 EPS Rs.19.97 (33.28% of target) | Stretch |
| FY27 order intake Rs.4,000 Cr, "likely to be exceeded" | Q1 FY27 earnings call | Rs.2,196 Cr YTD at the Aug 2026 call (54.9%); not updated in this filing — as of Aug 2026 | On Track |
| FY27 data-centre revenue Rs.40–50 Cr | Q4 FY26 earnings call | Not disclosed; no DC segment reported | Too Early |
| Smart meters 100% installed by end FY27 | Q4 FY26 / Q1 FY27 calls | 77% at Q1; no update in filing | Too Early |
| FY27 capex Rs.1,250 Cr | Q4 FY26 earnings call | H1 consol capex Rs.109.2 Cr = 8.74% of plan — back-ended plan | Too Early |
| Noida DC commissioning Q4 FY27 | Q1 FY27 earnings call | No update in the filing | Too Early |
| "The margins are in line with our guidance despite the period of real external pressure" | Q1 FY27 earnings call | Standalone margin 13.45% Q2 / 13.61% H1 — inside the 13–14% band | Confirmed |
| "Debt-free with a net cash position and AA rating" | Q1 FY27 call / notes | Borrowings Rs.54.9 Cr vs Rs.3,323.7 Cr cash + investments + bank balances; ICRA AA(Stable) reaffirmed Sep 2026 | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Sep 2025 | Mar 2026 | Jun 2026 | Aug 2026 (Q1 call) |
|---|---|---|---|---|
| Unexecuted order book (Rs. Cr) | 9,957 | 9,566.5 | 9,596.2 | 11,000 |
Key Investment Insights
Key Positives
- Consolidated revenue grew 31.35% YoY to Rs.1,107.9 crore; standalone revenue grew 30.79% YoY to Rs.1,096.8 crore
- Consolidated EBITDA grew 62.97% YoY to Rs.181.3 crore with margin expanding 318 bps YoY to 16.37%
- Consolidated PAT grew 52.34% YoY to Rs.158.4 crore; EPS Rs.13.62 vs Rs.8.94
- Q2 standalone revenue was 14.49% above the Rs.958 crore H1-split benchmark from the Rs.4,000 crore FY27 target
- Trade receivables fell 5.71% despite 26.93% H1 revenue growth
- Net-cash position of ~Rs.2,268.7 crore; ICRA AA (Stable) rating reaffirmed in September 2026
- Standalone finance costs fell 27.35% YoY to Rs.11.9 crore
- Subsidiaries added +Rs.22.4 crore to owners' PAT in Q2
Risk Factors
- Consolidated H1 operating cash flow of Rs.47.7 crore was only 0.19x consolidated PAT; consolidated FCF was negative at -Rs.61.5 crore
- Rs.89.6 crore of overdue receivables (BEL arbitration, DABS/Afghanistan, REC) carried unprovisioned with an auditor emphasis-of-matter note
- Standalone EBITDA margin slipped 32 bps YoY to 13.45%, in the lower half of the guided 13-14% band
- Standalone PAT growth of 10.26% lagged revenue growth of 30.79% due to effective tax rate rising from 14.42% to 23.14%
- Review report shows reviewed subsidiaries with an H1 net loss of Rs.18.2 crore, inconsistent with the positive consolidated-minus-standalone PAT differential
- H1 EPS of Rs.19.97 is only 33.28% of the FY27 Rs.60 standalone EPS target; H2 requires +57.66% growth vs H2 FY26
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