Synopsis: Techno Electric & Engineering, a long-standing player in India’s power infrastructure, is quietly making its mark in the data centre space. With a strong track record, debt-free balance sheet, and early projects already live, the company is well-positioned to tap into the growing demand for cloud, AI, and digital infrastructure.
A small-cap player is now stepping into the spotlight, quietly committing up to USD 1 billion to build data centres as India’s appetite for cloud, data and AI infrastructure accelerates. With power expertise, early projects already going live, and a strong financial base to fund expansion, could this be one of the most undervalued ways to play the data centre boom right now?
About The Company
Techno Electric & Engineering Company Ltd. (TEECL) is a long-established player in India’s power infrastructure space, with operations spanning engineering, project execution and asset ownership across the power generation, transmission and distribution segments. Incorporated in 1963 and headquartered in Kolkata, the company has built a strong execution track record over six decades, delivering projects across India and select overseas markets. Its business model covers end-to-end Engineering, Procurement and Construction services, along with operations and maintenance, positioning it as an integrated infrastructure solutions provider.
Over the years, TEECL has scaled its presence through partnerships with global technology providers, a focus on quality execution and a financially disciplined approach. The company operates with a debt-free balance sheet and holds a long-term AA stable credit rating.
It has commissioned over 200 MWh of renewable energy projects and executed more than USD 1 billion worth of power transmission, advanced metering infrastructure and flue gas desulphurisation projects, including around USD 600 million in transmission projects under the PPP model.
With a team of over 550 professionals and more than 450 projects completed since inception, TEECL is now expanding into digital infrastructure, with plans to develop up to 250 MW of data centre capacity as part of its next phase of growth. The shares of the company are currently trading at Rs. 1,064.20 with a market capitalization of Rs. 12,376.60 crore. The price to earnings ratio is currently at 27.7x compared to the industry price to earnings ratio of 18.4x.
Business Segments
As mentioned on their website. The company operates under 5 business segments explained below:
Transmission and Distribution
Transmission and Distribution is Techno Electric & Engineering Company’s core and largest business, backed by more than four decades of execution experience. The company operates as a full-service EPC player in this segment, handling projects across the power generation, transmission and distribution value chain. Its capabilities span the complete project lifecycle, from detailed engineering and design to fabrication, testing, supply, construction and final commissioning, all delivered on a turnkey basis.
TEECL has strong expertise in high-voltage infrastructure, including Gas Insulated Substations up to 765 kV, Hybrid Substations up to 220 kV and Extra High Voltage substations up to 765 kV in both AIS and GIS formats. The company also has experience in installing STATCOM systems up to 250 MVaR. Its ability to execute complex switching and distribution substations from concept to commissioning has helped it establish a leadership position in this segment.
Flue Gas Desulphurisation (FGD)
The company entered the Flue Gas Desulphurisation space in 2019, focusing on reducing sulphur dioxide emissions from coal-based power plants in line with tightening environmental norms. By deploying advanced technologies and adhering to emission standards prescribed by the Central Pollution Control Board, TEECL’s FGD solutions help improve air quality while also enhancing plant operations for its clients.
The overall addressable market for FGD projects in the country stands at Rs. 98,946 crore, offering significant long-term opportunity. However, the company also mentioned in their Q2FY26 transcript that, due to policy inconsistency and delays in regulatory clarity, no new FGD tenders have been released in recent months.
Advanced Metering Infrastructure (AMI)
Techno Electric has built a strong presence in Advanced Metering Infrastructure by enabling utilities to modernise their distribution networks through smart metering solutions. The company offers a comprehensive approach covering key use cases such as prepaid metering, net metering and energy accounting, supported by both standard and customisable solutions tailored to client requirements.
One of its key achievements includes the execution of a strategic smart metering project in Jammu and Kashmir under the Prime Minister’s Development Program, involving the installation of around 1.27 lakh smart meters along with AMI infrastructure and the setup of on-premises data and disaster recovery centres.
Data Centre
TEECL entered the data centre segment in 2021, leveraging its multidisciplinary expertise in electrical, mechanical, civil and structural engineering. Recognising the scale and complexity of data centre infrastructure, the company aims to deliver projects with strict adherence to quality, timelines and cost parameters, drawing from its long experience in large infrastructure execution. Backed by its in-house capabilities and market positioning, TEECL has set a long-term vision to invest USD 1 billion in data centres by FY 2030.
Renewable Energy
Techno Electric’s renewable energy initiatives reflect its early participation in India’s clean energy transition. Between 2009 and 2013, the company developed 207.35 MW of wind power capacity in Tamil Nadu and Karnataka as an Independent Power Producer, with an investment of around US USD 200 million. Its entry into the sector was supported by the acquisition of Simran Wind Project Private Limited and Super Wind Project Limited.
Several of these projects were among the first in India to be registered under the United Nations Framework Convention on Climate Change for carbon credits. Over the years, TEECL has monetised a significant portion of its wind assets, including the sale of 44.45 MW in FY 2015-16 for Rs. 2,150 million, 33 MW in FY 2017-18 for Rs. 1,650 million and 108.9 MW in FY 2022-23 for Rs. 4,250 million. The company continues to operate wind turbines with capacities of 3 MW and 18 MW in Tamil Nadu and Karnataka, respectively, contributing to ongoing green power generation.
Order Book Analysis
As of 30 September 2025, Techno Electric & Engineering Company’s order book STANDS AT Rs. 99,569.58 Million, reflecting a strong concentration in its core power infrastructure businesses. Transmission projects account for the largest share at 63 percent, highlighting the continued strength of the company’s flagship segment.
Smart meter projects executed under the DBFOT and TOTEX models contribute 19 percent of the order book, while other segments make up 11 percent. Transmission TBCB assets account for the remaining 7 percent, providing a balanced mix of EPC and asset-based exposure.
From a customer perspective, the order book is anchored by marquee clients. Power Grid Corporation of India Limited is the single largest contributor with orders worth Rs 20,985 million, representing 21.08 percent of the total.
This is followed by Adani Energy Solutions Limited at Rs 13,200 million, or 13.26 percent, and Rajasthan Rajya Vidyut Prasaran Nigam Limited at Rs 9,579 million, accounting for 9.62 percent. Smart metering orders from Jammu and Kashmir DISCOM stand at Rs 7,607 million with a 7.64 percent share, while projects linked to Nepal MCA contribute Rs 7,539 million, or 7.57 percent of the order book and others contribute the remaining.
Post 30 September 2025, the company has further strengthened its order position. It has secured an additional contract worth Rs 400 crore and has emerged as L1 in bids exceeding Rs 750 crore.
Management has indicated that several bids are currently in the pipeline and expects to secure additional orders of around Rs 1,500 crore during the current financial year.
This pipeline includes new data centres as well as edge data centre projects being developed by the company. With this visibility, the total order intake for the year is expected to reach around Rs 3,000 crore, providing sufficient backlog to sustain growth momentum in the near to medium term.
Financial Snapshot
The company’s financial performance is best viewed on a half-year basis, given the project-driven nature of its business and the seasonality in execution. Typically, around 40 percent of annual revenue is generated in the first half of the year, with the remaining 60 percent coming in the second half. As a result, quarter-on-quarter comparisons may not fully reflect the underlying operating trend.
For the six months ended September 2025, revenue from operations stood at Rs 1,352 crore. EBITDA for the period was Rs 194 crore, translating into an EBITDA margin of about 14.4 percent.
Other income amounted to Rs 105 crore, while profit before tax came in at Rs 267 crore and profit after tax at Rs 222 crore, representing a PAT margin of roughly 15 percent. Earnings per share for the half year stood at Rs 21.21, marking a growth of 23.6 percent compared with the same period last year.
During the quarter ended September 2025, the company reported revenue from operations of Rs 839 crore and an EBITDA of Rs 158 crore, with an EBITDA margin of 13.8 percent. Profit before tax for the quarter was Rs 144 crore, while profit after tax stood at Rs 123 crore, resulting in a PAT margin of 13.9 percent.
Other income during the quarter was Rs 47 crore, and earnings per share came in at Rs 10.61, reflecting a year-on-year growth of around 34.6 percent. As of the end of the period, the company’s cash and liquid investments stood at approximately Rs 2,600 crore, equivalent to about Rs 225 per share.
Riding The Data Centre Boom
Techno Electric has made steady progress in scaling up its data centre business, with several projects moving from development to operations. Phase 1 of the Jinnai data centre in Chennai was inaugurated in August 2025, and the initial set of customers has begun onboarding. In parallel, the Gurgaon edge data centre, the first facility to go live under the TEECL-RailTel contract, has commenced commercial operations. The company has also started implementation of a 16-megawatt gross load data centre project in Noida with RailTel under a revenue-sharing model, similar to its edge data centre framework.
The Chennai facility’s Phase 1 has a capacity of around 5.6 megawatts, forming part of a larger 24-megawatt project that will be commissioned in stages as customer acquisition progresses. Alongside this, customer onboarding has begun at both the Chennai and Gurgaon facilities.
Early adopters at Chennai include media and entertainment companies, domestic cloud service providers and select telecom players. At the Gurgaon edge data centre, RailTel has already utilised about 60 percent of the capacity, with the balance earmarked for private cloud and managed services, which significantly enhances rack monetisation compared with pure co-location.
Expansion plans continue to gather pace. A second edge data centre in Mumbai is expected to become operational by the end of the financial year, while construction has commenced on two additional 16-megawatt data centres in Noida and Calcutta under similar partnership structures.
The Chennai data centre has also launched managed bare-metal services and is seeing strong customer interest. Designed for high-density power delivery per rack, the facility is positioned to cater to high-density computing needs, including artificial intelligence workloads.
While revenue contribution will remain modest in the near term due to customer migration timelines, the data centre vertical is expected to contribute around Rs 125 crore in revenue in FY27. Phase 1 of the Chennai project has been capitalised at Rs 470 crore, with an additional Rs 85-100 crore of capex planned during the year for ongoing projects.
Future Outlook
FY26 Targets and Execution Visibility
The company remains broadly in line with its stated guidance for FY26, having achieved around 40 percent of its Rs 3,500 crore full-year target so far. Management expects performance in the second half to remain on track, supported by a healthy order book and clear visibility of opportunities in the transmission and distribution segment. Despite operational challenges during the quarter, including delays in site handovers, evolving customer requirements and region-specific issues across Rajasthan, Ladakh and Maharashtra, the company was able to meet its quarterly objectives through disciplined planning, execution focus and supply-chain management.
Operational Transformation and Scalability
Over the past three years, Techno Electric has delivered nearly four times revenue growth with only a modest increase in manpower. To support the next phase of growth, the company is undertaking a comprehensive transformation and digitisation initiative aimed at becoming more data-driven and improving execution efficiency. The focus remains on timely and high-quality project delivery, while maintaining a top-line range of Rs 3,500 crore to Rs 5,000 crore over the next two years. Alongside this, the company continues to invest in team upskilling, process improvements and cash-flow discipline to ensure sustainable and profitable growth.
Transmission, Smart Metering and FGD Outlook
Transmission continues to be both the backbone and the bottleneck of India’s power system, making it critical for renewable energy integration and grid reliability. With its strong EPC track record, disciplined bidding approach and early presence in digital grid solutions, the company is well placed to benefit from the ongoing, policy-backed transmission investment cycle.
Given the increasing size of transmission projects and growing interest from long-term sovereign and infrastructure funds, Techno Electric is evaluating strategic partnerships at both the platform and asset levels to jointly bid for TBCB projects.
In smart metering, the company is executing an order book of 2.5 million meters, with around 50 percent already deployed. The balance is expected to be completed by around September 2026. Due to margin pressure in recent tenders, the company has adopted a selective bidding strategy, prioritising timely completion and operational efficiency over incremental order intake.
Ongoing FGD projects are progressing as planned, although no new tenders have been issued recently due to policy inconsistencies and regulatory delays. The company continues to monitor developments closely and remains ready to participate when clarity improves, with none of its current projects impacted by the new guidelines.
Data Centre Roadmap and Revenue Visibility
On the data centre front, the Mumbai facility is now targeted for completion by the end of the financial year, following delays in land handover that pushed the timeline from the earlier December target. Revenue visibility from the Chennai data centre remains on track, and management is confident of delivering performance that could be better than broader industry trends.
Importantly, the company has clarified that the earnings per share guidance communicated so far does not include data centre revenues, and therefore any contribution from this vertical will not impact FY27 EPS projections at this stage.
Conclusion
Techno Electric may not look like a typical data centre story at first glance, but that is precisely what makes it interesting. This is a company that understands power, execution and capital discipline, three things that matter deeply in data centres but are often overlooked when the narrative focuses only on racks and megawatts.
With live facilities, credible partners like RailTel, a debt-free balance sheet and a clear long-term roadmap, TEECL is entering the data centre cycle early rather than chasing it late.
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