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Hidden Gem - Techno electric

ICICIdirect Research 13 Jun 2025 DISCLAIMER

Techno Electric is engaged in Engineering, Procurement and Construction (EPC), asset ownership and operations and maintenance services in the three industry segments of energy transmission (68% of order book), distribution (21%) and generation (11%). Techno Electric also ventured into Data centre space in 2021 where it sets up and operates data centres for data centre users across industry.

The company witnessed record revenue and PAT growth of ~51% and ~40% to ₹2269 crore and ₹386 crore in FY25. This was primarily led by transmission EPC business. Techno electric received orders worth ₹4150 crore in FY25 and expect similar orders in FY26E. The company has total orderbook of 11,000 crore of which ₹7500 crore in the transmission segment including extra high voltage (EHV) orders and ₹1450 crore orderbook in FGD segment. With order bid pipeline of more than ₹1.5 trillion over next two years Techno electric expects healthy order inflows to continue in transmission EPC space and This along with normal execution of FGD orderbook are expected to drive revenue and profitability.

The company expects to commission 25 MW and 50 MW of Data Centre capacity in FY26E and FY27E respectively. Techno Electric’s first edge data centre in Gurgaon has become operational, the phase 1 (6MW) of Chennai and Mumbai edge data centre to be operational in Q2FY26E and Q3FY26E respectively. Techno plans to invest ₹8000 crore to deploy 10 edge data centres in short term and ~250 MW hyperscale and edge data centre by 2030.

With increasing traction in the energy transmission and data centre demand, combined with healthy orderbook to drive growth in revenue and profitability. We estimate revenue, EBITDA and PAT to grow at ~39%, ~66% and ~40% CAGR respectively over FY25-27E. Robust growth outlook, lean balance sheet and accretion of high margin data centre business will attract premium multiples vis-à-vis other EPC players. We value it at 30x FY27E to arrive at a fair value of ₹1940 per share

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