Techno Electric & Engineering Company Ltd Q4 FY26 Results Analysis: Revenue Surges 43%, Cash Conversion Negative
CompoundingAI Research
Updated May 25, 2026
2 min read
Negative
Techno Electric & Engineering Company Ltd's Q4 FY26 numbers came in soft, with revenue of Rs. 3,251.63 Cr (+43.30% YoY) and PAT growth of +12.00% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | May 25, 2026 |
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| Quarter | Q4 FY 2025-2026 |
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| Revenue (Q4) | Rs. 3,251.63 Cr (+43.30% YoY) |
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| PAT (Q4) | Rs. 473.87 Cr (+12.00% YoY) |
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| EBITDA margin | 14.20% (-75 bps YoY) |
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| EPS (Q4) | Rs. 40.74 (+9.50% YoY) |
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| Market cap | Rs. 15,485.38 Cr |
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| CMP | Rs. 1,333.00 |
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Quarter Snapshot
FY26 results showed robust 43% revenue growth but missed management's own guidance by ~10%, with margins contracting and cash conversion turning deeply negative due to receivables build-up. The company's near-debt-free balance sheet and data center investments provide long-term optionality, but near-term earnings quality and execution discipline remain key investor watchpoints.
Key Investment Insights
Key Positives
- FY26 revenue grew 43.3% YoY to Rs.3,251.63 Cr, driven by H2 acceleration
- FY26 EBITDA margin of 14.20% met the upper end of management's guidance of 13.5-14%
- Standalone PAT grew 26.6% YoY to Rs.5,419.37 million, with EPS of Rs.46.60 (+23.8% YoY)
- Data center asset base grew substantially (PPE from Rs.377 Mn to Rs.4,581 Mn), positioning for future revenue
- Company remains near-debt-free with D/E of 0.017x and strong liquidity of Rs.22,540 Cr in investments and cash
Risk Factors
- FY26 revenue missed management's guidance of Rs.3,500-3,600 Cr by 9.7% and EPS missed Rs.50 target by 18.5%
- Operating cash flow turned deeply negative at -Rs.5,899.56 Mn despite PAT of Rs.4,738.65 Mn, driven by Rs.5,441 Mn locked in receivables
- EBITDA margin contracted 245 bps YoY in Q4 FY26 to 13.08% from 15.53%, with cost of materials growing faster than revenue
- Auditor flagged Rs.885.28 Mn in trade receivables as substantially overdue with no impairment provision, at 7.3% of total receivables
- Subsidiaries generated a Rs.681 Mn PAT drag (consolidated PAT of Rs.4,739 Mn vs standalone Rs.5,419 Mn), indicating data center investments are pre-revenue
- FY27 EPS target of Rs.75 requires 84% growth over FY26 actual of Rs.40.74 — very aggressive and dependent on data center ramp-up
Disclaimer: This is an AI-generated analysis based on public filings. It is not investment advice, not a recommendation to buy/sell/hold any security, and is not prepared by a SEBI-registered Research Analyst or Investment Adviser.
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