Techno Electric & Engineering Company Limited (TEECL) is a prominent power infrastructure company in India that provides engineering, procurement and construction (EPC) services to the power sector. The company operates across three key segments of the power sector: generation, transmission and distribution. Originally incorporated as Simran Wind Project Limited on October 26, 2005, the company was renamed to Techno Electric & Engineering Company Limited effective from August 3, 2010.
The company provides comprehensive solutions across the electricity value chain through its EPC vertical, asset ownership and operations and maintenance services, while also engaging in wind power generation through wind turbine generators in Tamil Nadu and Karnataka. As an independent renewable energy producer, the company operates approximately 129.9 MW wind energy capacity.
The company reported strong financial results for Q4 FY25, with consolidated net profit jumping 73.7% to Rs 134.65 crore on an 85.6% increase in revenue from operations to Rs 815.79 crore compared to Q4 FY24. For the full year FY25, consolidated net profit increased 57.5% to Rs 422.95 crore on a 51% increase in revenue from operations to Rs 2,268.66 crore.
Key financial metrics demonstrate the company's robust performance:
- Revenue: Rs 2,269 crore (FY25)
- Net Profit: Rs 423 crore (FY25)
- Q4 FY25 Net Profit: Rs 134.65 crore (up 73.7% YoY)
- Q4 FY25 Revenue: Rs 815.79 crore (up 85.6% YoY)
- Final Dividend: Rs 9 per equity share (face value Rs 2)
The company has a market capitalization of Rs 18,323 crore as of recent data. Key valuation metrics include a P/E ratio of 48.5, book value of Rs 322, and dividend yield of 0.44%. Promoter holding stands at 56.9%.
The company operates through three primary segments: EPC (Construction), Energy (Power), and Corporate. It focuses on generation, transmission and distribution segments through EPC services, renewable power generation and public-private partnership (PPP) projects.
The company's customer base primarily consists of central and state public sector undertakings, though it also serves private companies in power-intensive industries. The company became an independent renewable energy producer in FY 2009 with 129.9 MW wind energy capacity installed in Tamil Nadu and Karnataka.
In June 2025, Techno Electric was awarded a 10MW data center contract by RailTel on a revenue-sharing basis for a 30-year tenure, including a contract to build a 10MW Noida data center. The company has launched its subsidiary, Techno Digital Infra, with a $1 billion investment plan targeting 250 MW data center capacity, supporting India's Digital India mission.
The company has strategically managed its wind power assets over the years, including receiving private equity investment from International Finance Corporation in 2011, buying back IFC's stake in FY 2015, and selling wind power assets worth Rs 2,150 million and Rs 1,650 million in FY 2016 and FY 2017 respectively.
The company demonstrates several positive attributes including being almost debt-free, maintaining a healthy dividend payout of 29.1%, and showing improved debtor days from 190 to 108 days. With an annual revenue growth of 81% and a pre-tax margin of 21%, the company maintains strong fundamentals with a debt-free balance sheet.
Current financial ratios show a ROCE of 16.5% and ROE of 12.8%. However, the company has a low return on equity of 12.1% over the last 3 years. The stock is trading at 4.90 times its book value, indicating a premium valuation.
According to analyst recommendations, 100% of analysts recommend a 'BUY' rating for Techno Electric & Engineering Company Ltd with an average target price of Rs 1,528. The company expects significant opportunities in AMI, transmission, and data centers, with a projected EPS of Rs 75 by FY 2027, supported by a robust order book of Rs 9,100 crores.
The company's strategic positioning in India's power infrastructure sector, combined with its expansion into data centers and renewable energy, positions it well for future growth opportunities in the country's expanding digital and power infrastructure landscape.
