TD Power Systems Limited (NSE: TDPOWERSYS) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Nikhil Kumar — Managing Director
Vinay Hegde — Global Head, Sales & Marketing
M. N. Varalakshmi — Chief Financial Officer
Analysts:
Ganeshram Rajagopalan — Analyst
Mohit Surana — Analyst
Garvit Goel — Analyst
Kiran Dhanwada — Analyst
Piyush Sevaldasani — Analyst
Rohit Balakrishnan — Analyst
Salil Desai — Analyst
Ankur Kumar — Analyst
Basant Bansal — Analyst
Presentation:
operator
Sa. Sat foreign. Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call of TD Power Systems Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. Before we begin, I would like to point out that this conference call will contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Nikhil Kumar, Managing Director of TD Power Systems Ltd. Thank you. And over to you sir.
Nikhil Kumar — Managing Director
Thank you. Good morning everybody. Thank you once again for joining us today on our learnings call. I trust all of you would have received our results and investor presentation. Now I’d like to move on to. Discuss with you TDPS’s financial performance for 9 months ending 31st December 2025. Standalone Our total income for 9 months on standalone basis was 11.94 billion versus. 9.02 billion over the same period the previous year, an increase of 32%. EBITDA for nine months is 18.33% including. Other income excluding exceptional treasury income versus. 17.45% over the same period in the previous year. Profit after tax and comprehensive income for nine months is 1.45 billion versus a. Profit of 1.09 billion over the same period in the previous year, increase of 41%. The order book for the manufacturing segment is 18.45 billion out of which 15.6 billion is a manufacturing business, 2.85 billion is the railway business 2.85 railway business is further divided into 1.87 would be the Indian locomotive business and 0.98 billion. Would be the new order where the aftermarket is 0.1 billion and 72 billion is the Turkey business. Exports and deal Export excluding railway order on the pending order basis is 75%. Order inflow during the quarter is 6.56. Billion INR and all time record an increase of 61% on a Q1Q basis. Export order inflow including deemed export during. The quarter is 84% at 5.1 billion. Nine month order inflow from direct and dean exports is 12.05 billion compared to 7.52 billion in the previous year. Growth is 62%. 79% of our nine month order inflow. Is exports and only 21% is domestic. We would like to point out that. The. Growth in the pending order 9 months for 9 months FY26 for generators and motors excluding railways, the growth is. 54% compared to 9 months FY25 9 months and 120% from 9 months FY24. This shows that the pending order has. More than doubled in the past 24 months. Consolidated Our total income for 9 months period on a consolidated basis is 12.8. Billion versus 9.43 billion increased by 36%. Profit after tax and other comprehensive income. For 9 months is 1.66 billion versus profit of 1.21 billion increase of 37%. We continue to maintain a strong cash position of 1.93 billion. Coming to market conditions and guidance the. Market conditions continue to be very strong for TDPs in all segments of the. Business and the gas turbine and gas engine business continue to be the strongest segment with the highest growth and the. Highest growth potential in the years to come. Before going on to the individual segment, I’d like to add a few words. About our third plant and capacity. In the past two quarters we have. Achieved a sales of around 450 crores. Per quarter which is around 1,800 crores. On an annualized basis. This shows that we have really pushed. Our capacity utilization to a level beyond what we expected. We declared our third plant as operation. On the 18th of December. So we really have not felt the. Impact of this new capacity on our sales. We have already seen increases in the. Factory expenses in Q3 due to additions. Of manpower but also in other existing. Areas sorry in other areas of existing. Plants to support the higher productions that. Will follow in Q4 and quarters to come. We also had some shifting one off shifting charges in Q3 while we shifted. Some machinery, critical machinery like robots from. Our existing units to the new factory in Q4. We’ll ramp up to 550 to 575. Crores per quarter production and sales and. Then move out to around 600 crores per quarter in Q1 onwards. This will be in line with the. Expected order inflow that we see in the pipeline. We have started a number of activities. To further make our production more efficient. And we will not add bulk capacity. For sales up to FY28. However, investment will take place for twofold. Generator production and for motors which will. Be a major trust area for the company in FY28 onwards. Meanwhile, we’ll continue to invest in automation and lean manufacturing. Now let me go through the segments one by one. India’s steam turbine. The market continues to grow to rate that we mentioned a little earlier with. No surprises on upside. On downside, the market is steady with around 10 to 12% growth taking place in the capital, power plant business, biomass and waste recovery. The export market pipeline is also strong. And Overall we expect 10 to 20% growth in Steam turbine market. We’re getting steam turbine order from all. Over the world and demand is steady. Gas engine generators and gas turbine generators. The demand of forecasts in Europe and US couldn’t be very, very high and we’re experiencing a big uptake of orders. There’s an increasing trend for all data centers to use only capture power and. Not be grid dependent. The huge power consumption of grid power. By data centers has increased grid power. Prices and this is the reason for data centers to move towards having their own power. This increases the opportunity size for TDPs. The forecast given to us by our prime mover customers shows a huge increase. Year on year until 2030. And the demand is not only coming from data centers. Big demand is also forecast to come from grid stabilization, synchronous condensers and other applications. This is real demand and this is. Also good from a risk spreading perspective. In other words, we’re not being dependent. On a single market and a single segment to drive our growth. Hydro. We have achieved excellent order inflow in this segment and next year will be one of the highest in the history of the company. For Hydro in particular, TDPS is very active in the refurbishment business in India and abroad. This segment is growing and will become a large vertical for TDPs. Within Hydro, our motor business is growing in the rate we mentioned earlier this year. We still be on track to achieve around 150 crores. Top line. The number of orders in pipeline for. Synchronous motors, induction motors and export. For. All types of motors. In particular the number of orders in synchronous motor segment that will be finalized very shortly. Railways. We have orders for the US market, Europe market and Russia market. We’ll be supplying all three markets next year and one includes India, then four markets. General guidelines we will cross 1800 crores this financial year and we give an. Upward guidance for FY20. At 2,200 plus crores. This is the conservative guidance based on the ramp up of the order booking. That we’re seeing which is around 575 to 600 crores per quarter. We see an extremely high probability to. Increase Our guidance further. This brings me to the end of my initial remarks. I’ll be now happy to answer your questions. Thank you.
Questions and Answers:
operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ganesh Raman with Unifi Capital. Please go ahead.
Ganeshram Rajagopalan
Thank you Nikhil and congratulations on the results. I have two questions. The first question is generally what is happening in the domestic market? Do we have any capacity constraints so we’re being selective with orders or do we expect any large orders to be finalized in the coming quarters? Just in context of the sequential movement of domestic orders downwards? Just trying to understand that portion.
Nikhil Kumar
I’ll ask my colleague Vinay sitting with me to answer this question.
Vinay Hegde
Yeah, hi Vinay, are you able to hear me?
Ganeshram Rajagopalan
Yeah, yeah, Vinay, go ahead please.
Vinay Hegde
Okay, so domestic sector, as Nikhil told in the beginning, we are expecting a moderate growth of 10 to 12%. And sizes of the machines are on. The bigger side beyond 20, 25 megawatt. So we are expecting some number of orders in the steam turbine segment from. The steel plants, mainly from the steel industry. And also the hydro segment in India. Is opening up and we’re already seeing. Good order input from the hydro segment. From the Indian market as well. So as I said, the two major segments for us in India, the steam turbine and the hydro turbine, both the segments are doing moderate. That means around 10 to 12% growth year on year.
Nikhil Kumar
And we’re not losing any orders because. Of capacity or we’re not turning away any orders. Whatever business that we that is there in the market, we’re taking and we’re accepting all the business from the domestic market.
Ganeshram Rajagopalan
That is very clear. And just if you could clarify this. There was some news a few weeks back that there might be some relaxations on Chinese equipment coming to India. Would there be any impact to the segment from that? Or. Too early to say.
Nikhil Kumar
There’ll be in the captive power plant business up to 100 megawatt. We don’t see any impact of any Chinese equipment coming into the country. They can come into the country even now. There’s no restrictions for Chinese equipment to. Come into the country even now with there’s no special import licenses or anything required. They can come in even now.
Ganeshram Rajagopalan
Okay, Nikita, that’s very clear. And the second is just on the bookkeeping side. If you could help us understand with the new facility coming in and ramp up to 600 crores per quarter, what would be the incremental overheads that we incur and in terms of how the commodities basket has been moving. If you could just refresh how you’re sort of dealing with that and if you’re seeing any cost pressures and how you mitigate that. Yes.
Nikhil Kumar
So the most of the increase in cost for the new plant are already. We’re seeing already, most of it already coming into Q3. And we don’t expect a dramatic increase taking place from this point onwards. In Q4 there could be further increases, but not to the extent that we’ve seen in Q3. So you could take another, let’s say. Another 5% increase on the cost that we’ve really. 5% increase. What you have seen already. Now coming to the second question of commodity prices. Yes. Copper prices have gone up drastically. We are renegotiating all our prices with all our customers. And we will ensure that we pass on this price increases or cost increases to our customers. We have absolutely no problem in getting the price increased to what we need. In the meanwhile, whatever copper that we have in the pipeline insulators for some time. And after that the cost increases will kick in and those will cover the costs.
Ganeshram Rajagopalan
Got it. And last question if I may is just any updates on what customers are saying with the US Tariff situation staying where it is over the last two quarters. I know you’ve clarified this multiple times. But just to stay updated on if there is any change that we should be aware of.
Nikhil Kumar
No, I think people are disappointed that there’s no India US Trade deal. People have more or less resigned themselves. To the fact that it’s probably not. Going to be a trade deal. And. None of our customers right now. Are insisting that we move our production to Turkey just because of the. Just because of the additional risk perception and also the extra lead time is required. So right now everything is being produced out of India and sort of India. And we’re getting our order inflows that you’re seeing right now. There’s no stoppage, there’s no let up, there’s no hesitation. It’s going at full swing.
Ganeshram Rajagopalan
Okay, Nikhil, thank you very much and good luck.
Nikhil Kumar
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. The next question comes from the line of Mohit Serana with Monaj Network Capital. Please go ahead.
Mohit Surana
Thank you for the opportunity. First of all, congratulations on the great setup numbers. So my first question is with respect to the global demand for gas turbines and gas engines, as you mentioned and also confirmed by various news flows, it remains very strong and fair to say until 2030. We have good visibility on those lines. Is it fair to say that our guidance of rupees 220 crores for FY27 that could be on the conservative side?
Nikhil Kumar
Yeah, I mentioned that already during the opening speech that this is a conservative guidance. Okay. Of 2,200 crores. I also hinted that. Not hinted, it’s pretty obvious that I said that we expected waterly inflow to be something in the region of 575 to 600 and the production rate would be matching that order inflow. So that’s what we would broadly expect the numbers to be next year. And then further upside potential, whatever is. There in the second half of the year then we would be happy to further give an upside. But right now we’re saying 2,200 crores. Plus and that’s a conservative estimate. Yes, your question is correct.
Mohit Surana
Understood sir. So just one more question. Have there been any new customer addition? I mean apart from the already set of customers that we have, the global OEMs. Because this time we have got some, a couple of marquee breakthrough orders. Just wanted to understand how big these can be in the future.
Nikhil Kumar
Yeah. So we do have one customer acquisition. Which is in the US from the US market for gas turbines which is. Right now in engineering orders. Case there in the presentation. Also they should be converted into a machine order by the next couple of weeks and then there’s a big forecast that they have on engineering. We can’t name the customer but we are very close to acquiring a big new customer.
Mohit Surana
Understood sir, that’s very helpful. That’s all from my end.
operator
Thank you. The next question comes from the line of Garvit Goel with Serini Alpha. Please go ahead.
Garvit Goel
Hi, am I audible?
operator
Yes.
Garvit Goel
Just one question in reference to the earlier participant like all commodities are firing and you also mentioned we will be trying to renegotiate the prices with the end customers. So how should we interpret it? Like will it take some time and maybe for near term we can expect a little bit pressure on our margins.
Nikhil Kumar
No, because we have a certain pipeline, we have a certain pipeline of booked. Copper at low lower prices. So those will be consumed by the time we consume it.
Garvit Goel
Sorry.
Nikhil Kumar
Yeah, so I just picked a Little louder. I said no, we have a certain. Pipeline of previously booked copper at lower prices and once, you know, once that’s. Fully, by the time that’s fully consumed. The new prices, expect new prices to kick in.
Garvit Goel
Understood. And so secondly, on the domestic side, the PPD you have mentioned, there is a big demand that you are anticipating in the domestic market from the hydro segment, sir. So can you put some color on that? Like what is driving this demand? What kind of structural changes taking place and how long do you see this kind of visibility in domestic market for the hydro segment?
Nikhil Kumar
I’ll hand over this question to my colleague Vinay.
Vinay Hegde
Yeah, hydro segment was not very active for the last four, five years. Mainly when I say hydro segment, there are investments happening on the large hydro. But as you know, we are in the small hydro segment that is up to 45 megawatt and we have recently got a couple of orders and also. Now we are focusing on the refurbishment. Market and there are some government jobs coming up. And in the last quarter we have received one big order for the refurbishment. Business and also there are a couple of tenders. So that is why I said, you know, in the domestic market the hydro segment is also picking and there’s a.
Nikhil Kumar
Good visibility at least for the next. Two, three years in the hydro segment because these projects generally tend to be long gestation projects and there are a. Large number of inquiries in the pipeline. I am not worried about the sustainability of the hydro.
Garvit Goel
And when compared with the turbines, when compared with the data center demand, what kind of margin profile difference do we generally see in the hydro segment?
Nikhil Kumar
Generally we talk about the margin profile across all products being approximately the same. But of course when we are dealing. With foreign currencies in the current environment with either dollar or with Euro, we. Do see upside potential in margins due. To the depreciation of the rupee. And in the current situation in the case of euro it’s been quite extreme. So it’s very positive for the company. We will see those numbers flowing into the bottom line from Q4 itself definitely to a major extent in Q1 and. The dollar also has moved to 91, 92. That also really benefits or helps us in the bottom line. So that would be the big difference on the margin profile, let’s say between rupee based order and or at least orders.
Garvit Goel
Got it. So that’s it from my side, sir. And all the best for the future. Thank you.
operator
The next question comes from the line of Kiran with table three capital. Please go ahead.
Kiran Dhanwada
Thank you for the opportunity. Many congratulations on A great set of results and revised outlook. Sir, it’s a couple of questions from my side. There has been a massive talk in the US around slowing down AI investments, not getting enough return on AI investments. Obviously power is basically the infrastructure that drives all these investments. So just wanted to kind of get. Your sense on the commentary that’s going on in the US around AI investments per se visa vis what you’re seeing on the power sector for the next two, three years. I mean, do they continue? Are you seeing any slowdown? Because these orders are long dated as well. Any slowdown that you see in the two, three year time frame from a order book perspective?
Nikhil Kumar
Absolutely not. Absolutely not. Okay. I don’t know how else to answer this question.
Kiran Dhanwada
Got it. Got it. So you are seeing only acceleration in terms of getting the power thing getting done and the AI investment slowdown is upwards through the value chain. Is that how I should understand it?
Nikhil Kumar
I don’t see any slowing down of any AI investments taking place. I think I don’t know what you have been. I don’t know where this information is coming from. As far as I know, all the. Tech companies have increased their AI spending. Nobody’s cutting it down yesterday, you know, you might have seen the Microsoft results and seen the massive spend that they have on AI. Of course the reaction from the market. May not be very positive to what they’re doing, but they’re spending in the end, that’s what matters.
Kiran Dhanwada
Got it. Got it. So this is, I should think of this slightly longer term than any immediate one term bump up in orders.
Nikhil Kumar
Yeah. Look, just a few minutes earlier another. Investor has said that there’s a clear demand situation up to 2030. I fully agree with that. There is a clear demand profile. Demand situation, forecast, firm forecast, OEMs up to 2030, this trend or this backlog. What they’re seeing, the way the market is being backlogged on the prime oversight. Turbine side and engine side is going up to 2030. That’s a good visibility that we have right now. Four years more than that I don’t. Think anyone can expect in the capital goods business.
Kiran Dhanwada
Got it. Second question, sir, is around all the copper pricing, I’m sure other investors will also ask, so do we, should we look that our existing copper inventory will help us sustain these margins and any new orders that we book from here on will have new copper pricing incorporated and therefore no hit to margins.
Nikhil Kumar
I think I’ve answered that question a number of times already, twice already. So I think I’ll just stick to my earlier Answer. Obviously all new orders will go with the new prices. Obviously. And we will renegotiate renegotiating with all our customers.
Kiran Dhanwada
Got it sir. Any last update on motors? How the traction is happening? Is there any increased traction or is it continuing as it is?
Nikhil Kumar
It’s continuing not at an exceptional rate. It’s continuing at the rate that we have earlier projected. So. As I mentioned last earnings call. Also and I’m again repeating it right. Now, the entire company is highly occupied. With. Dealing with the massive increase in the generator business. And it’s not just data centers and error across the board. We have a number of new products in the pipeline. We’re also acquiring new customers, developing new products for customers. So we are really capacities are fully booked in this part of the business right now, delivering high growth. So we are focusing more on the generative business right now. Completely forgotten about the motor business. But it is not having the same. Priority at the moment. It will grow, but it is not going to grow at some exceptional rate. Maybe 10, 15% per year compounded.
Kiran Dhanwada
Got it. Thank you so much for the answer.
operator
Thank you. The next question comes from the line of Piyush with Sundaram alternates. Please go ahead.
Piyush Sevaldasani
Hi sir. Thank you for the opportunity and congrats. For a good set of numbers. So we have been hearing some of. Our customers talking about capacity additions event beyond CY28 till CY30. So any plans do we have to further expand our capacities?
Nikhil Kumar
I mentioned in my opening remarks that. We will flog our existing assets until 538. And. If we have to add new capacity, we have more than adequate land in our plant. We can duplicate our investment once again. And I will take that call if we have to make any bulk investment. I’ll take that call sometime next year around this time.
Piyush Sevaldasani
Sure sir. Thank you sir. That’s it from my side.
Nikhil Kumar
Thank you.
operator
The next question comes from the line of Rohit. But I thought pms. Please go ahead.
Rohit Balakrishnan
Hi, good morning. Good afternoon. Congratulations on Stellar Water. So this is just. Most of the questions have been already answered. I just wanted to understand from you about the railway business. So both in India and I think we also won something outside India. I think few years back you talked about it also. So I mean just wanted to get your sense about how is that a decent opportunity in outside India and also like in India what is happening. I saw we did win something directly but it’s been a bit slow. So.
Nikhil Kumar
Yeah, I think it’s going at whatever earlier rate that we. Whatever we said is going to happen. Earlier. So earlier we said that this Indian. Railway contract is going to expire by FY28. And it’s going to expire and then it’s going to be replaced by some export contract. Those export contracts we already have started getting ordered and at the moment we. See a transition moving from the Indian business to the export business. But there’s going to be no massive. Growth taking place in the segment. We will have a steady state situation for the next few years over here.
Rohit Balakrishnan
Okay. And so I think so inter export business is an opportunity to get idle customers also beyond what we have or like. Is that an opportunity or.
Nikhil Kumar
Opportunities are there? We’re not pursuing the. Railway business for the motor business. From that perspective there are very limited. Opportunities because most railway manufacturers, locomotive manufacturers. Make their own motors. So because the motor is a very integral part of the entire drive system, there are limited opportunities. And I would say that you know we are. We’re not focusing on that right now. What we have on hand is what we are executing. And as I said, we’ll have a steady state situation for the next couple of years. And after that we will see.
Rohit Balakrishnan
Got it. Okay.
operator
Mr. Rohit, I would request you to please come back in the queue for further questions.
Rohit Balakrishnan
Thank you.
operator
Thank you. The next question comes from the line of Salil Desai with miraculous investment managers. Please go ahead.
Salil Desai
Hi Nikhil. Nikhil, one question following up from what you were responding on the railways business quarters presentation. You split the railway business into something called as a new railway business. So what exactly is this?
Nikhil Kumar
Yeah, what will Lashmi will explain.
M. N. Varalakshmi
Yeah, we just split the entire railway orders of 2.85 billion because we always get selling that there’s some order that. We have from the Indian market will close in 2728. So we wanted to tell the market what is the balance in that and what is the new orders that we got in this segment?
Salil Desai
Okay, I see. All right. But this would be domestic assume. Right. New business and the railways 1.87 is domestic.
M. N. Varalakshmi
1.87 is domestic. The rest is export.
Salil Desai
Understood. Thanks. And secondly again one clarification on refurbishment. This I’m assuming is agnostic of the who the original equipment supplier was. Right? Or are you doing it just for TD Power or OEM that you worked with earlier? Got it. Thank you.
operator
Thank you. The next question comes from the line of Ganesh Ram with unified capital. Please go ahead.
Ganeshram Rajagopalan
Thank you. I think we’ve understood the existing parts fairly well. I just wanted to talk a little bit more about medium to longer term the new initiatives. Right. The 2040 and up to 100 megawatt generators. And the motors business, if you could just give us a sense as to how they’re progressing, any shipments done in the 20 megawatts now and how the motors business you’re thinking of will shape in the next two to three years.
Nikhil Kumar
I think I already answered the question. On the motor business.
Ganeshram Rajagopalan
Oh yeah, yeah, yeah.
Nikhil Kumar
On the larger generator business, we are delivering the first unit. This month and there will be some testing. I’ve always maintained that we will see. The ramp up in this business in 27 calendar. 27 and we still stick to that schedule.
Ganeshram Rajagopalan
Okay, Nikhil. And just on foreign, on assets, how far out are we hedged right now? Sorry, how far, how far out are we head?
M. N. Varalakshmi
Only next very small volume, 10% of our business.
Ganeshram Rajagopalan
Okay, got it.
Nikhil Kumar
We took a conscious decision to stop hedging about six months ago because we were seeing a rapid depreciation of the Indian rupee and we decided to stop hedging and that was the correct decision because we were locked in rates that are the spot rates have now gone way below that. So it was the correct decision that we took to stop and I think we’re going to see the big benefit coming in from that.
Ganeshram Rajagopalan
Yeah, yeah. The way it’s going. Absolutely. Yes. And last, if you have this data in the order info that we’re Getting now of 650 odd crores, would you know by any chance how much of this would be data center driven?
Nikhil Kumar
No, we’re not going to get that information.
Ganeshram Rajagopalan
Okay, understood. I respect it. Thank you Nikol.
operator
Thank you. The next question comes from the line of Uncle Kumar with Alpha Capital. Please go ahead.
Ganeshram Rajagopalan
Hello sir. Thank you for taking my question. Sir, given our new capacity is coming, what will be our peak revenue for after that capacity comes?
Nikhil Kumar
Yeah, it’s a really good question. I, I, I generally mentioned we’re not. Going to make any bulk investments until FY28. So. I think somewhere between 2,600 and. 2800 crores we will not make any further bulk investments. And then after that we will. And so around next year this time we’re going to be looking at what’s going to be happening FY29 and FY30. If the market is going to continue to grow at the same rate then we will have to add capacity. So that’s what, that’s the decision I have to take next time around this time next year.
Ankur Kumar
Got it. Answer on the tariff side. You said there is no stoppage, orders are coming in. So the customer Is paying for the tariffs right now and how are we getting so much order Supplying directly from India only and they are paying the territory. That’s all.
Nikhil Kumar
Yes, Yes.
Ankur Kumar
Got it sir. And sir, on. On the gross margin side given you have already answered this to couple of guys. We. We should expect this gross margin to sustain here at around 35%.
Nikhil Kumar
Yes.
Ankur Kumar
Got it. Thank you. And all the best for the upcoming quarters.
Nikhil Kumar
Thank you.
operator
The next question comes from the line of Bansad Bansal with NBG investment. Please go ahead.
Basant Bansal
Hi, good afternoon. So my question is on this Chinese issue. While answering one of the participant question you said that the Chinese can come and set up the shop in India. So what is the new thing which is being talked right now?
Nikhil Kumar
Sorry, I couldn’t understand your question. Could you please repeat?
Basant Bansal
My question is that Chinese people can come and set up shop in India. So now recently this news came that government will allow China. So what is the new thing which government is planning to do?
Nikhil Kumar
Anybody can come set up shop in India.
Basant Bansal
That’s true. That’s true. So what is the new thing which.
Nikhil Kumar
Is Indian government has restricted any particular country from setting up shop in India. And it’s been a situation for a long time.
Basant Bansal
Yeah, yeah, that I understand. So. So now what is the new thing which is coming up? My question is something I cannot understand. Hello my sir, my question is that if they can come and set up the shop in India. So what is the news which is happening or which is under discussion?
operator
Hello sir, can you hear us?
Basant Bansal
Yeah, I can hear you.
operator
Oh yes, just a second.
Basant Bansal
I think management is not able to hear me. Hello.
Nikhil Kumar
I think we lost the same. Yeah, I don’t know whether my answer was audible to everybody but I will answer once again.
Basant Bansal
So please. I’m sorry.
Nikhil Kumar
Anybody can import power equipment into India. Can you just please come back on the line or something?
Basant Bansal
Yeah, I’ll come back.
Nikhil Kumar
And it’s breaking. But anyway I just want to say something. Anybody can set up shop in India to make any type of power equipment. Anybody can import from any country any. Type of power equipment. So I don’t see why this suddenly become an issue. What has changed? Why has it suddenly become an issue? Hello.
operator
Yes, we’ll move on to the next question. It’s from the line of Mohit Surana with Monaj Network Capital. Please go ahead.
Mohit Surana
Thanks for another opportunity. So my question is our guidance for FY27. Does that take only volume growth into account or there is some pricing growth element as well? In that because the global commentary according to that the global OEMs are increasing their prices for turbines and gas engines.
operator
Mohit, sorry to interrupt. Could you please repeat your question?
Mohit Surana
Sure. So the guidance for FY27. I wanted to understand. Is there a volume growth angle only or we have baked in some price increases as well for our products?
Nikhil Kumar
Both.
Mohit Surana
Sir, can you give us some indication of what kind of price growth have we built in? Just in case. If you can share.
Nikhil Kumar
No, no.
Mohit Surana
Understood sir. Okay, thank you. That’s all. From my end.
Nikhil Kumar
I know the previous question I didn’t answer maybe or I didn’t answer correctly. But maybe the gentleman can come back. Into the queue and ask the question. We can go for that.
operator
Yes sir. Thank you. Ladies and gentlemen. This was the last question for today. I now hand the conference over to the management for closing comments.
Nikhil Kumar
Thank you everyone for joining us on this call. And we will look forward to meeting many of you face to face in the upcoming investor meeting. Otherwise we will talk to you again at the end of next quarter. Thank you very much for your time today. Bye bye.
operator
Thank you on behalf of TD Power Systems limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.