Techno Electric is a Kolkata-headquartered, EHV (extra-high-voltage) transmission EPC specialist — market leader in substation EPC up to 765 kV, with a 400+ project execution track record — that has layered renewable/BESS EPC, advanced metering infrastructure (AMI) and, most relevantly to this report, a dedicated data-centre subsidiary, Techno Digital, onto that core business. What separates Techno Electric from almost every other construction-category name in this report is that its flagship data-centre project is commissioned, not merely announced: a 36 MW AI-ready hyperscale facility at SIPCOT IT Park, Siruseri, Chennai (~200,000 sq ft, up to 2,400 racks, integrated with renewables and a Battery Energy Storage System), which reached commissioning per coverage dated around August 2025. Techno Digital has also signed a named delivery partnership with RailTel — a separate company covered in this report's sister volume on India's AI compute stack — to build edge data centres across 102 cities in 23 Indian states, phased between 2025 and 2029: a concrete, named counterparty relationship, not a pipeline claim.
The balance sheet and credit story support the BUY call independently of the data-centre narrative. The company is "almost debt free" per screener.in, carries an ICRA AA(Stable)/A1+ rating with rated bank facilities progressively enhanced through 2025 to a total of ₹3,000 crore, and posted a FY2025 interest cover of 32.2x. The unexecuted order book reached a record ₹11,000 crore as of August 2026, up from ₹9,600 crore as of 30 June 2026, against a company-wide FY27 revenue target of ₹4,000+ crore at 13-14% EBITDA margins. At a CMP of ₹1,030 (18 September 2026), the stock trades at a trailing P/E of only 23.3x — inexpensive next to the growth and credit trajectory on offer.
Two things temper the story, and this report states both plainly. First, Q1 FY27 (quarter ended 30 June 2026) consolidated PAT fell 15.9% YoY to ₹93.33 crore even as standalone revenue grew 24.9% YoY — a topline-growing, profit-declining quarter most plausibly reflecting capex-ramp costs and mix effects tied to the DC/renewables build-out, but a genuine near-term data point, not a rounding error. Second, the data-centre vertical, while the most credible in this report's construction category, remains small in absolute terms: management guides only ₹40-50 crore of DC revenue for FY27, against the ₹4,000+ crore group-wide target — roughly 1-1.25% of guided revenue. This report also flags, without resolving, a real discrepancy between ICRA's rating-rationale-cited FY24/FY25 revenue (₹1,502 crore / ₹2,269 crore) and screener.in's higher FY24/FY25 figures (₹1,681 crore / ₹2,402 crore) used in the table below.
Net: a BUY. Techno Electric offers the most concretely evidenced data-centre execution story of any construction-category name in this report — commissioned capacity and a named delivery partner, not slideware — sitting on top of a cheap, low-leverage, investment-grade core business. The DC vertical is real and growing, but investors should own this name for the whole company today, not for a data-centre segment that is still roughly 1% of guided group revenue.
Techno Electric is a mainboard NSE/BSE-listed company subject to the full SEBI LODR regime. Whether the heightened (≥50%) independent-director threshold applies turns on whether Chairman and Managing Director roles are combined in P P Gupta — sources conflict, and this research could not resolve the question from the materials reached. This is the single largest governance-verification gap for this company and should be closed before its board composition is assessed as compliant either way.
At least four confirmed independent directors (K K Rai, S N Roy, Anjan Dasgupta, Dipali Khanna) sit on a board of roughly nine to ten members — a composition plausibly consistent with either the one-third or 50% SEBI LODR threshold, pending confirmation of the Chairman/MD question above. The company is "almost debt free" with a FY2025 interest cover of 32.2x, and ICRA has progressively reaffirmed and enhanced its rated facility quantum through 2025 — a genuine, demonstrated credit-quality signal rather than a one-off rating letter.
A meaningful share of the 56.93% promoter block is held through named promoter-group entities (Varanasi Commercial ~21.2%, Kusum Industrial Gases ~12.6%, Techno Leasing & Finance ~11.9%) rather than directly by named individuals; this research could not independently verify these entities' exact current percentages or their beneficial-ownership chain back to the Gupta family from a primary shareholding filing. Director Avantika Gupta's family relationship to P P Gupta (surname match strongly suggestive of a promoter-family relationship) is not explicitly confirmed in the sources reached. Two further names (K M Poddar, Arun Duggal) appear in one promoter/director list but not in a separate current board table, leaving an unreconciled question over whether they remain on the board.
None confirmed as adjudicated matters. No SEBI enforcement action or insider-trading finding was found. This research could not verify the statutory auditor's name, any recent auditor rotation, or litigation history — an absence of evidence, not affirmative clearance, and an open item for a dedicated governance-report pull.
Confirmation of whether Chairman and MD roles are combined in P P Gupta; reconciliation of the board composition list (Poddar, Duggal); verification of the promoter-group holding entities' beneficial-ownership chain; confirmation of Avantika Gupta's family relationship; and resolution of the ICRA-vs-screener revenue discrepancy against the audited annual report.
Not fully confirmed, mainly because this report could not verify enough of it. Nothing found in this research points to actual misconduct, and the confirmed independent-director count and demonstrated credit discipline are genuine positives — but an unresolved Chairman/MD question, an opaque promoter-group holding structure, and unreconciled revenue figures mean a modest governance discount belongs in how confidently this report holds its valuation, even though it does not change the underlying BUY call.
CMP of ₹1,030 (18 September 2026) divided by the disclosed trailing P/E of 23.3x (screener.in) implies trailing EPS of roughly ₹44.2 — broadly consistent with FY26 standalone PAT of ₹542 crore over an implied ~11.6 crore shares (market cap ÷ CMP), which independently works out to ~₹46.6; this report uses the P/E-implied ₹44.2 as its EPS anchor since it is directly sourced rather than back-derived. Applying a moderate ~12% forward-growth assumption — held well below the company's own FY27 revenue-growth guidance of ~23% (₹4,000+ crore vs. FY26's ₹3,252 crore), specifically to reflect the Q1 FY27 consolidated profit decline and the DC/renewables capex-ramp costs likely to persist through the year — gives a constructed FY27E EPS of ~₹49.5. We apply a target multiple band modestly above the current 23.3x trailing multiple, reflecting the record order book, the enhanced ICRA facility quantum and the commissioned DC execution, without assuming a dramatic re-rating:
| Scenario | Target P/E (FY27E) | FY27E EPS (~) | Target price | Upside/(downside) |
|---|---|---|---|---|
| Bear | 20.0x | 49.5 | 990 | (3.9)% |
| Base | 25.0x | 49.5 | 1,238 | +20.2% |
| Bull | 30.0x | 49.5 | 1,485 | +44.2% |
Base case rounded to ₹1,238. Named brokerage coverage found in this research is thin and partially inconsistent: an unnamed "top brokerage" Buy target of ₹1,681 (~April 2026, ~34% implied upside at the time); an aggregator-style consensus average of ₹1,524.9 (range ₹1,292.8-1,785); and a separate April-2026-dated aggregator citing a ₹1,787-2,057 range — this report treats these as inconsistent snapshots from different panels/dates rather than averaging them into a single figure, and its own base case sits below all of them, reflecting a more conservative forward-growth assumption given the Q1 FY27 profit decline.
Upgrade triggers: DC-segment revenue disclosed at or above the ₹40-50 crore FY27 guidance with visible margin evidence toward the ~50% aspirational colocation economics; confirmation of the Chairman/MD governance question with a board structure demonstrably compliant with the applicable SEBI LODR threshold; a reversal of the Q1 FY27 profit decline in subsequent quarters. Downgrade triggers: further consolidated profit declines despite revenue growth; any slippage in the Kolkata 13 MW or wider DC-capacity roadmap; or a credit-rating action reversing ICRA's enhanced facility quantum.
| FY24 | FY25 | FY26 | |
|---|---|---|---|
| Revenue | 1,681 | 2,402 | 3,252 |
| EBITDA margin | 14% | 14% | 14% |
| Net profit (PAT) | 270 | 428 | 542 |
| Selected metrics | Latest |
|---|---|
| ROE (latest / 3-yr avg) | 12.6% / 12.3% |
| ROCE | 15.2% |
| Order book (Aug 2026) | ₹11,000 cr |
| Q1 FY27 consolidated PAT (YoY) | ₹93.33 cr ((15.9)%) |
Source: screener.in (18-20 Sep 2026 fetch, standalone basis). ICRA's rating-rationale figures for FY24 (₹1,502 crore) and FY25 (₹2,269 crore) revenue are lower than screener's ₹1,681 crore and ₹2,402 crore shown above; both are disclosed rather than reconciled to one, per the discussion in "What gives us pause" above.
Dart Consultants is a market intelligence and technology service provider, not a SEBI-registered Investment Adviser or Research Analyst. This report is educational material only — not investment advice, and not a recommendation to buy or sell any stock. The BUY rating above is an educational device for summarising public information, not a regulated recommendation. The analyst(s) hold no position in, and have no banking, advisory or brokerage relationship with, Techno Electric & Engineering Company Limited, and have received no compensation from the company.
| 12-month target | ₹1,238 |
| CMP (18 Sep 2026) | ₹1,030 |
| Implied upside | +20.2% |
| Rating | BUY |
| Market cap | ₹11,984 cr |
| P/E (trailing) | ~23.3x |
| Book value/share | ₹362 |
| 52-week range | ₹1,489 / ₹870 |
| Credit rating | ICRA AA/Stable/A1+ (₹3,000cr) |
| Promoters (Gupta family) | 56.93% |
| DII | 22.72% |
| FII | 8.65% |
| Public | 11.70% |
| FY24 | FY25 | FY26 | |
|---|---|---|---|
| Revenue | 1,681 | 2,402 | 3,252 |
| EBITDA margin | 14% | 14% | 14% |
| PAT | 270 | 428 | 542 |
