TECHNO ELECTRIC & ENGINEERIN (NSE: TECHNOE) Q2 2025 Earnings Call dated Nov. 13, 2025
Corporate Participants:
Padam Prakash Gupta — Managing Director
Shivani Chandok — Vice President and Head, Strategic Initiatives
Ankit Saraiya — Whole Time Director
Analysts:
Suraj Sonulkar — Analyst
Ravi Naredi — Analyst
Sarvesh Gupta — Analyst
Mohit Kumar — Analyst
Garvit Goyal — Analyst
Ashwin Patil — Analyst
Shrey Gandhi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q2FY26 earnings conference call of Techno Electric and Engineering Company Limited hosted by Asian Market Securities Private Limited. As a reminder, all participant lines will be 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 call, please signal an operator by pressing Star then zero on your touchstone phone. Also, before we begin, we’d like to inform you that this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as of the date of this call. These statements are not the guarantees of future performance nor and involve risks and uncertainties that are difficult to predict.
I would now like to hand the conference over to Mr. Suraj Sonorkar from Asian Market Securities. Thank you. And over to you, sir.
Suraj Sonulkar — Analyst
Thanks, Rayo. Good afternoon everyone. On behalf of Asian Market Security, we welcome you all to the Q2FY26 earning conference call of Techno Electric and Engineering Co. Ltd. We have with us today Mr. P.P. gupta, Chairman and Managing Director and Mr. Ankit Saraya, Director and Shivani Chando, VP Strategic Initiative and Investor Relationship. I request Gupta Ji to take us through the overview of company quarterly result and then we begin with the Q and A session. Over to you, sir.
Padam Prakash Gupta — Managing Director
Thank you Shamark. Very good afternoon to all of you and thank you for joining us to discuss Techno Electric’s financial results for the quarter and the half year ended 30th September 2025. Before we begin a short note on forward looking statements. Any comments on our future outlook should be read in conjunction with the risks and uncertainties that affect our industry and the company. The key operational highlights of this quarter basically are a quick note on comparability. Our results are not directly comparable quarter on quarter because of the project driven nature of our business and the seasonality of execution.
H1 generally contributes 40% of the full year revenue and H260% this year. We are broadly in line with our guideline that is 40% of 3500 crore F25 financial year 26 target. We remain on track to meet our H2 targets supported by a lowest order book and clear visibility of further opportunities in our E and D segment. Given the sustained growth in our order book over the past two years and a positive market outlook, we are now focused on consolidating operations to improve efficiency and scalability Coming to Data Centers I am pleased to inform the Board that the Phase one of the Chennai Data center was inaugurated in August and the initial set of customers are being onboarded.
The Gurgaon Edge Data center, the first to come online under our Delta DDC contract, has commenced commercial operations. We have also started implementation of 16 megawatt gross load data center project in Noida by Railton. This project is under a revenue share model similar to our Edge Meta Centers financial updates. It gives me a great pride to share that we remain firmly on course to meet our financial year Rupees six targets even though this quarter tested our entire patience on construction ecosystem persistent aids across key regions for our projects located in Rajasthan, Ladan, Maharashtra along with sector wide hurdles including delayed site turnovers, evolving customer requirements and environmental challenges.
Yet through vigorous planning, disciplined execution and focus on delivery and supply chain and climate change related challenges, we not only stayed resilient but successfully achieved our quarterly goals. I will request my colleague Shivani of VP IRN Strategic Initiatives to take you through the financial results. Shivani, will you like to take one?
Shivani Chandok — Vice President and Head, Strategic Initiatives
Thank you sir. Thank you so much for the great start. I would now like to take you to our quarterly performance as well as the half year ended September 25th performance so revenue from operations also six months. I start with the six months performance so revenue from operations stand at 1352 crores within a beta of 194 crore. This is roughly 14.4% of our revenue. Our other income stand at 105 crores, PBT at 267 crores PAT at 222 crores which is 15% of our revenue. Our EPS for the six month ended September 25th stands at 21.21 rupees per share which is a 23.6% growth over the similar period last year.
For the quarter ended September 25th our revenue from operations stand at 839 crores with an EBIT of 115 crores. The EBITA margin on our revenue is 13.8%. Our PVT is at 144 crores with a PAT at 123 crores giving us a PAT margin of 13.9%. Other income during the quarter stands at 47 crores giving us an EPS now at 10.61 per share for this quarter, EPS has grown around 34.6% over the previous year Quarter with respect to our liquid investment in cash, our cash balances stand at 2,600 crores which is roughly around 225 rupees per share.
Our order book remains to stand robust at 9,957 crores as at September 25th we have received order worth rupees 400 post September as until date. Thus we can say that we Thus we can say that we have an order book of roughly around 10,350 crores plus. With respect to L1 orders, we are currently L1 on one of the projects by Anarika at 300 crores and two by PGCL at 482 crores, so roughly 782 crores. We are L1. We have various bids in the pipeline and are confident to get additional orders for around 1500 crores in the current financial year which includes the new data center as well as Edge data center projects being built by us.
This will take a total order intake for the current financial year to around 3000 crores. Thus we will have enough orders to keep on the growth momentum the company has. As you are aware, the company has achieved roughly 4x of our revenue growth in the past three years with only modest rise in our manpower. We are now undergoing an extensive transformation and digitization drive to be data driven for strengthening execution and to prepare for the next growth phase. Our focus remains on timely high quality project delivery, maintaining a 3500500 crores of top line over the next two years.
We continue to be selective in new orders in our focus segments while investing in upskilling our team process efficiency as well as continuing with our cash flow discipline to ensure sustainable and profitable growth. Now we can now focus on the data center update. For the same I would like to hand over to Mr. Agit Saraya.
Ankit Saraiya — Whole Time Director
So as we had informed, Our Chennai Phase 1 was inaugurated in August 25. The first phase is of approximately 5.6 megawatts and the total capacity of the project is 24 megawatt which will be commissioned in phases as we continue acquiring customers and the Gurgaon Edge data center under the Railtel contract has also been commissioned and we have started onboarding customers at our Chennai and the Gurgaon facility. Early adopters in Chennai include customers from media and entertainment industry, domestic cloud service providers and a few telecom players. At Gurgaon, Railtel has consumed about 60% of the capacity and the remaining capacity will be used to provide private cloud and managed services which materially increases our RAC monetization almost by three times of pure colocation.
The second Edge Data center in Mumbai is expected to be operational by the end of the financial year and parallel. We have started construction of a 16 megawatt data center in Noida under similar partnership with Railtel as for Edge Data center and another 16 megawatt data center in Calcutta. In Chennai we have also launched managed bare metal services and are receiving strong customer interest for this particular product. Our data centers, especially the Chennai Data center, is natively designed for high density power delivery on per rack basis and this we believe is a differentiated proposition for customers exploring high density computing which is quite relevant for deployment of artificial intelligence.
We are in active discussion with multiple customers who require high density computing and look forward to exploring those opportunities. Given customer migration timeline setup requirements and data center revenue this year will be modest. We expect the data center vertical to contribute close to about 125 crores in top line during the financial year 27. Once the asset becomes revenue accretive, its impact will be apparent in the financials and can be analyzed at that time. Phase 1 of Chennai has been capitalized at Rupees 470 crores and further in the financial year we expect to spend around 85 to 100 crores on our ongoing DC projects which are under construction in Noida and Calcutta on the outlook of the data center industry India’s data center industry is entering a phase of consolidation and maturation.
According to recent report by Cushman and Wakefield, the country added approximately 160megawatt of new capacity in last six months, taking the total operational capacity to around 1280megawatts. The industry continues to operate at healthy utilization rate of 80% reflecting sustained demand momentum. The market currently comprises around 28 active operators managing over 130 facilities largely concentrated across 7 key metros which is Mumbai, Chennai, Bangalore, Hyderabad, Pune, Noida and Calcutta. Over the past two years the sector has also begun expanding beyond traditional hubs with tier 2 cities such as Ahmedabad, Lucknow, Patna, Jaipur and Chandigarh emerging as new destinations.
Adding further momentum. Google’s recent announcement of a multi megawatt data center campus in Visakhapatnam signals a new phase of large scale investments. This move is expected to attract AI focused global hyperscalers and technology firms seeking diversified and similar high capacity locations across India and this possibly is the inflection point of the industry. Given Techno Electric’s expanding footprint in data centers across key Indian markets, we are uniquely positioned to deliver end to end integrated solutions. As we transition from being primarily a developer to an operator, our focus is shifting towards high value service led offerings such as cloud managed services, bare metal services amongst others.
This strategic pivot not only enhances our customer value proposition but also drives margin expansion and positions us as a differentiator, a full stack player in India which is rapidly growing in a digital infrastructure landscape. To cover the transmission industry outlook, I’ll hand it over to Mr. P.P. gupta.
Padam Prakash Gupta — Managing Director
India’s power demand continues to surge driven by industrial expansion, data centers and digitization. In May 2024 the country recorded a peak demand of the 250 gigawatt, the highest ever jet. As generation rises, especially from renewables, the real challenge is transmission, moving power reliably across regions. India grid spans 4.95 lakh circuit kilometer of line and 1.36 million megabas of transformation capacity with under 18.7 gigawatt of international transfer capability. You can refer to CA4 June 2025. Still over 50 gigawatt of renewable capacity remains stranded. The lack of evacuation infrastructure is posing all these challenges. To bridge this gap, the National Electricity Plan 23 to 32 calls for adding 1.9 lakh circuit kilometer of fuel lines, 1.3 million MBA of transforming capacity, an estimated 9.1 trillion rupee investment and which will include HUDC corridors, Statcoms and renewable power energy evacuations.
Policy momentum is strong. The General Network assess amendment in August 2025 streamlines grid assets and integrates storage and hybrid projects. Updated right of way guidelines standardizes compensation at 30% of land value in rural areas and 60% in urban areas, reducing delays in acquiring right of ways. Meanwhile, the ISTL charge waivers are both located charges storage and the 30 GWh battery storage strengthen project economics and enable the storage ready grid. The grid itself is turning smarter. The CA deployment guidelines push real time data visibility while utilities adopt AI based protecting maintenance drones and digital twins are faster safer operations.
Together these measures mark the start of India’s largest ever grid modernization. Transmission is now both the bottleneck and the backbone of the power system crucial to unlocking renewable growth and ensuring reliability. With its strong EPC track record, disciplined bidding and early mover into digital grid, SOL Techno Electric is well positioned to benefit from this multi year policy back transmission investment cycle. Further, with the emergence of large scale transmission projects and growing interest from long term sovereign and infrastructure funds, we are evaluating strategic partnership at the platform level, at the asset level to join the bid for TBCB projects and also expand our participation in competitive opportunities Our segment Smart Meter as you all know we are executing 2.5 million smart meter order book out of 50% stands deployed tenants will be completed in the coming year, maybe by September 26th.
The company’s current priority is to ensure timely completion of all ongoing projects and given the recent pressure on margins in new tenders, we have adopted a selective bidding approach and are not pursuing additional projects at this stage, focusing instead on quality, execution and operational efficiency within the existing portfolio. Our ongoing FGD projects are progressing as for sure. However, due to policies inconsistency and delays in regulatory clarity, no new FGD tenders have been released in recent months. The CA has come out with new guidelines classifying locations in ABC category where a category will be focused first which are within data the semi urban towns with a population of a million plus and projects within 10 km range.
The company continues to monitor the situation closely and remains prepared to participate as and when new opportunities arise. None of our ongoing projects is impacted by these new guidelines.
With this I now would like that the floor be open to further detailing or any Anybody having any more requirement of information sharing is welcome.
Questions and Answers:
operator
Sure. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press STAR and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from CA Garved Goyal from Envest Analytics. Please go ahead.
Garvit Goyal
Hello.
Padam Prakash Gupta
Yeah you are audible sir.
Garvit Goyal
First question is on the guidance part. We have guided for 50 EPS for this year and 75 for next year. But just the confusion like if I look at the continuing operation consolidated EPS it is around 18.48. So what is giving me the confidence that the figure of 18.48 will be 50 by the end of this financial year? So that is my first question.
Padam Prakash Gupta
Yeah, you see, you see our previous year’s track record. As I said quarter on quarter is not equitably distributed number one. Number two, first two quarters are generally not more than 40% at which you can see our 50 rupee guidance. We are already exceeding 20 rupee plus EPS already in first two quarters. And if you see last year also we are confident to achieve 50 plus as a EPS for the current year.
Garvit Goyal
So when you mention 50 EPS are you speaking about the standalone including continuing the discontinuing?
Padam Prakash Gupta
Can you repeat your question
Garvit Goyal
when you. Are leaving the tide and for 50 EPS of 50 rupees. So are you speaking about the standalone number, sir?
Padam Prakash Gupta
Yeah, not consolidated. They are nearly same, you know, 0.5%.5.
Garvit Goyal
Years and there no, because in first quarter, if I look at. See here are two things. One is the continuing operation. Second is the discontinuing operation. So are we including the discontinuing operations as well while giving you the projections?
Padam Prakash Gupta
You see, that is obligatory to include number one as a disclosure. But we are confident to achieve 50 of a ongoing operation. You take it that way.
Garvit Goyal
So in the ongoing operations, if you. If I look at the consolidated financial number that you released for first half, we have done 18.48 EPS.
Padam Prakash Gupta
Yeah, you can take that 18 and a half and it will be 50 by the year.
Garvit Goyal
And secondly on the tax part, sir, I’m not able to understand the fluctuations in the tax rate. So can you put some color like spend some minutes maybe the CFO in explaining like how the taxation is working for Techno Electric, sir.
Padam Prakash Gupta
Taxation is very normal. As for the rules I had last time also I guided you take on an average in our case tax applicability at 20%.
Garvit Goyal
20% will be the tax rate for this year.
Padam Prakash Gupta
Pre tax income, which includes other income. Also what got gets exempted is our dividend income. Dividend we earn as the other income. And dividend payout both stands exempted. So on the actual bottom line, you pay a tax at 25%. So and then bit of adjustment on depreciation.
Garvit Goyal
So going ahead for full year basis it will be the uniform or 20% rate will be okay. And regarding the order inflow, sir, earlier as far as I remember we were targeting around 3500cr order inflow for this year. And now I think the opening remarks you mentioned like we will be getting 3000cr. So are you people witnessing any kind of weakness in the order inflows in the industry?
Padam Prakash Gupta
Not at all. Question is we have sufficient business in actual want to have more juicy business. 3,000 or 3,500 is hardly a. It’s only a number. At the end of the day maybe we end up more than 3,500 also. But just as a conservative approach we have we only guided you 3,000 to 3,500. You may take it that way or maybe it goes to 4 project. The more issue is execution today in the given challenges of supply chain. Climate change, readiness of the grounds to deploy facilities, enabling the challenges are more than the capability to deploy them.
Garvit Goyal
So you are doing very good. The thing is only the margins so what is your guidance for H2 margin? Sir.
Padam Prakash Gupta
We have always maintained 13 to 14% on an average and maybe little more depending on the mix of the job so you can work on a guidance of about 14% 13 and a half to 14%.
Garvit Goyal
And lastly on the data center part Mumbai Data center is further getting delayed like earlier we were speaking about December now we are speaking about the end of financial year and secondly from Chennai data center also the revenue is getting delayed as far as I am understanding. So how do you people look at it? Like still we are maintaining the EPS target forever 27 or that will further maybe revise downwards.
Padam Prakash Gupta
Ankit, would you like to answer this question?
Ankit Saraiya
Yeah so Bombay Data center as far as the schedule is concerned we are still targeting it to be completed by financial year end we were earlier targeting it to be completed by December end But because of delay in handover of land for a particular facility the target has shifted and regarding the revenue is concerned we are pretty much on target as far as Chennai is concerned and we are confident that we’ll possibly be able to deliver better than what is visible in the industry across. And anyways those revenues don’t have an impact on the EPS of FY27 because we maintain that whatever EPS that we’ve spoken about till date is without consolidating the data center numbers.
Garvit Goyal
The one thing I need a clarification again like also sir has mentioned he has clarified like 18 consolidated from continuing operation will get near to 50 but when you say we will be consolidating data center operations so are we currently consolidating any course related to data center in our consolidated financial results?
Padam Prakash Gupta
Yeah in consolidation we have to do but there is no financial impact considered what we are projecting to the market 50 is purely out of the conventional business ongoing business as a EPS this year we are not factoring any EPS contribution from data center it is only value accretive business for us as far as the current year is concerned but next year some EPs may happen out of it which we have yet not counted for.
Garvit Goyal
And lastly one thing sir we requested for visiting for our NCR data center but we did not get a response to our email. So can you connect us with the right people like to whom or to which ID we have to request it?
Padam Prakash Gupta
Ankit.
Ankit Saraiya
Yeah sure. So we’ll connect with you once we have the database of joinees today we’ll specifically connect with you and we’ll arrange for a visit.
Garvit Goyal
Okay, that’s fine and all the best for the future sir thank you Very much.
Ankit Saraiya
Thank you.
operator
Thank you. The next question is from Ravi Naradi from Naredi Investors. Please go ahead.
Ravi Naredi
Well, how is the smart meter business going on? Whatever investment in funding is required, how we arrange the funds in future? That is my question.
Padam Prakash Gupta
You see, we are as you know, we are generally data work company. Presently we are all funding it with our own resources which we raised through the qip. And we trust we will be able to meet obligation of two and half million meters of the ongoing job out of our internal resources.
Ravi Naredi
Okay. And when our work will be many more multifold than how we arrange the fund.
Padam Prakash Gupta
Look, we explored at that time whether we leverage it by borrowing or maybe monetizing the commission assets. Some of them we have not applied mine because at the moment focus is 2 1/2 million meters job in hand and to be by September 26th.
Ravi Naredi
Understand? But I hope definitely in past you and you did well. So this you also well to manage. Well, sir, in data center, how much investment we did in Chennai?
Padam Prakash Gupta
Ankit, would you like to answer?
Ankit Saraiya
Yeah. The investment made in chennai is approximately 450 to 470 crores.
Ravi Naredi
450 to 470 crore. And what is expectation for financial year 27? Top line.
Ankit Saraiya
It will contribute anywhere around 125 crores.
Ravi Naredi
And what is the bottom line here?
Ankit Saraiya
I would take it at approximately 55 to 60%.
Ravi Naredi
55 to 60%. Thank you very much. Ankit and Guptaji.
Ankit Saraiya
Thank you.
operator
Thank you. The next question is from Sarvesh Gupta from Maximil Capital. Please go ahead.
Sarvesh Gupta
Yeah. Good afternoon sir and thank you for giving the opportunity and congratulations on continued strong execution. Sir, first question was again related to the order inflows. So you partially answered it but just wanted to understand it a little bit more. So I think our order book has stayed constant at around 10,000 crore for many quarters now. So one way to look at it is that we are proactively only not taking much orders because you know there is a limit to how we can execute these orders. And the other thing would be that there is some slowdown in terms of ordering because we are seeing government not prioritizing infrastructure, power and all these areas in general, you know, the kind of order that we were witnessing two, three years back.
Right now we are not able to sort of see that growth. So. So if you can throw some more light, I mean through your answer I came to understand that maybe once we. Receive we reach 5000 odd crore top. Line next year we will have to again get aggressive about getting new orders. If we were to to grow from that level. So which of these scenarios is playing out? Sir, if you can explain. Thank you sir.
Padam Prakash Gupta
Look, these are all perceptions and realities are very different. Look, the issue is basically deployment. Somebody wins a concession, he has to deploy airships, he has to acquire right of way and land parcels and that is not easy in India the challenges on the ground and that is what I was sharing with you. Now you are a preferred supplier or a vendor to concrete or anybody registration is concerned. The question is you can pile up any amount of number as a order. What I am talking to you is executable business, you know and that is more than sufficient for next two years perhaps at the moment.
So we want to discuss business with you which is executable something. Business as a order and still not visibility of execution is merely a number that has no value to you and me as a company. So please don’t get confused. It’s a long story. In this market renewables is still. A beginning. I will say the whole ecosystem has to both very nati transition and unless there is a proper grid none of these projects are going to be successful. The present hindrance in the whole value chain in renewable energy is not renewable energy deployment or generation but the grid, the grid is not available, feeders are not available, they are not being made ready in time. So that is the challenge country is facing at a overnn level. So it’s a small story. We want juicy business, we want quality business. A business which can happen in time and we can make good bottom line out of it.
Sarvesh Gupta
So on that sir, basically let’s say in the second half of next financial year we would have made another 7.5% thousand crore revenues from the current order book. So I think at that. So basically the way I am understanding is that if if we have to grow 15 20% FY28 onwards we can always get more orders. Right now we are not taking as much because we can’t execute if we take more.
Padam Prakash Gupta
Dear, I think you have not studied our three years track record. This one quarter performance of this company is equivalent to whole year performance of 23. Please look in that we mentioned in our presentation in last three years we have grown four times. So it means one quarter now three years back we were doing in whole year. So we are growing by more less than 40, 50% a year, year on year, year on year. So kindly don’t classify generally and generically that is not all good for us. So and we are a man based industry not something which is a machine based industry like Structure or like any other manufacturing transformer reactors, I can create capacity and harness it.
We have to execute by the very manpower we deploy at different pockets of India. So you don’t have unlimited capacity. You need lot of discipline, integrity, lot of processes and controls behind it. So it is a, it has its own ecosystem behind it. And we will continue to grow at 40 billion per annum at least for next two years visibly. Then we have to get into a consolidation phase also to sustain that momentum in our industry. Why techno is better than others because we believe in contract closing more than contract begging as an order book closing and realizing cash is more important to us.
Remaining debt free is more important to us. Serving our obligation to our stakeholders is more valued in our company.
Sarvesh Gupta
Understood sir, that is well understood. Thank you for providing the clarification, sir. One more question was related to this data center. So now we have seen some record breaking numbers being announced by the big companies in the US to set up data center, for example in Andhra Pradesh. So is there an opportunity for us to be, you know, preferred sort of a EPC player as they build out these data centers or do we see that initially when they build it out, they will build, they will bring their. Existing partners in other geographies. How do we assess this sort of an opportunity, sir?
Padam Prakash Gupta
Ankit, would you like to reply?
Ankit Saraiya
Yeah, yeah. You see, let me put it this way, that any company announcing an investment of close to $15 billion in a single location is almost like developing a city in itself. And everyone who has been part of the industry, whether as an EPC or equipment manufacturer or a developer themselves, the rewards of such an investment percolate to each and every person sitting in the industry. But I would look at it from a much larger perspective that this is the first investment that has been announced of this scale and may not be the largest globally as well.
But for India it’s quite significant. But what it does is it’s opened floodgates to many such more announcements to come because we catch the attention of the globe. So today it is Google and tomorrow it will be OpenAI and going forward it will be many others. And somewhere or the other the company stands to benefit from this kind of capital getting deployed in the industry. And it’s very difficult to today pinpoint at whether that benefit will trickle down to us as an epg, whether as an operator or how. But we can just think of where the industry is going if a single player is announcing an investment of $15 billion and even if, let’s say four more players announce it we are talking about a number close to 70 to 80 billion dollars to be invested just on large scale data sets.
Rest is yet to come. So it’s a beginning and it’s a significant announcement for the industry. And let me say this is just the beginning of what we are seeing. And if we follow announcements in US and Middle east and other parts of the globe, we are still to catch. Up to those sites
Padam Prakash Gupta
you see. Further, you kindly note the most exciting part is the power and data and data centers are today two sides of the same coin. So if 15 billion is happening as a investment, 5 billion will be on power infra. If it is not on data centers and data infra. So for techno there will always be a good chunk of work either as a power infrastructure or as a data center. So we are in a very sweet spot as a capability in India in this space.
Sarvesh Gupta
Finally, I think in one of the previous calls you had mentioned that when it comes to renewable, the transmission requirement is almost four times of that of thermal. So given that sir, do you see that as an industry we have enough supply side, you know, scale to match up to the kind of requirement that would be required here and at techno, sir, how are we sort of increasing our own capability to be able to cater to that massive transmission side demand?
Padam Prakash Gupta
Right now it should be very clear to you what techno electricity good at and what it stands for. We are a zero manufacturing company. We only deploy facilities. So definitely we work in partnership with the supply chain people. They are definitely at the moment also stretched and they are booked heavily at the moment because of this very deployment of renewable power capacity which is going at a rate of no less than 50 gigawatt a year now in the country. So but simultaneously more capacity is also being planned and added by the very manufacturers. So at the moment, if you ask me, supply chain is definitely a bit constrained in some products.
But techno having a presence in this sector for last four decades and relationships with all these suppliers gets us a kind of edge over many other new players. So we are by and large able to manage our facilities here and there in time. Otherwise how will we complete a project today in 9, 10 months in Sheikh or Dosha or Kamda and many other locations which we earlier used to do it two and a half to three years. So there are time pressure compression is happening in the schedules and inputs are being arranged in time.
Sarvesh Gupta
Okay, thank you sir, and all the best. Thank you.
operator
Thank you. The next question is from Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes, good evening sir. And thanks for the opportunity. My first question is only on the transmission pipeline. Is it fair to expect that the. H2 and drone H2 in F27 the opportunity size remains sizable because the bidding for F24 and F25 for transmission were too high and most of the projects have haven’t seen the tendering as of now. Is it. Is it a fair assumption?
Padam Prakash Gupta
I will say mixed. It is, it is picking up, yes. Because of Pakistan war or other priorities of the government in between. Things was a bit astray but it is back on track now. Every week one or other concession is being settled or fixed. So I see things are being on track now and government will be able to meet its obligations for the year.
Mohit Kumar
My question was more on the question. More on the tending activities attending from the power grid, tending from the private ibps. Are you seeing those opportunities multiplying?
Padam Prakash Gupta
Absolutely, absolutely sir.
Mohit Kumar
Those guys already sitting a large order book, right? Be it Adani, be it. Be it the power grid. Both are very large project pipelines. So do you think that the those pipelines will get awarded and there be higher opportunity for us as we enter the H2 and F27? That’s another question.
Padam Prakash Gupta
Yes. Yeah, yeah. Mohit, you are perfectly right. We are in discussions with them and we are already L1 in many tenders with. But they generally don’t announce it these days till they have fixed their own issues with I will say without coordinators or they have acquired the SPV by then. So we are working in close coordination. Adani, Starlight as well as Cornweet, who are larger stakeholders in this sector and who are good at delivering projects. Because more important to us also is you can do a project timely. That is very important. Important in our sector.
Mohit Kumar
On the smart meter side, of course no bid has happened in last couple of years. But. But I think the Tamil Nadu there’s a bit which is likely to open. Then there is a bid in Delhi which is likely to open. Right. And there’s a Punjab. So are we, are we looking at those bits or. These are not. These are not, not compatible with these geographies.
Padam Prakash Gupta
Look at the moment the kind of aggressiveness we are seeing with the other bidders. We are definitely not comfortable at the rates quoted by others. Definitely Punjab and Tamil Nadu are not the preferred locations for political districts. And Tamil Nadu is anyway going for a election round shortly. So I don’t think this will happen so soon. Punjab it may happen, I am not sure. But at the moment our focus is lifted to two and a half million meters Completion and seeing satisfactory in operation.
Mohit Kumar
And on the data center on Chennai Data Center. Sir, have you started leasing out? Renting out? Have you started booking or booking the rental income now? Or do you think it will start from after this fiscal year?
Ankit Saraiya
Start booking our first revenue from Chennai Data center from the month of November onwards.
Mohit Kumar
Okay, understood. Have you leased out the entire thing. Or still some part is pending?
Ankit Saraiya
No, we have leased out about. You can say close to about half a megawatt. And today we are yet to lease out the remaining capacity. Having said that, we are in discussion with couple of. We have a couple of discussions ongoing which are seeming promising to lease out larger capacity.
Mohit Kumar
Is it fair to expect that the. Entire capacity will get tied up in the next six months?
Ankit Saraiya
Yeah, you can say that.
Mohit Kumar
Understood sir. Thank you. And all the best. Thank you.
operator
Thank you very much. Before we move to the next question, we’d like to request participants to Please limit your questions to two per participant. The next question is from Nikunj Bhanushali from Kosh Wealth Management. Please go ahead. You may go ahead with a question. There seems to be no response from the line of Nikolaji Banushali. We’ll move to the next question. The next question is from Ashwin Patil from Intelligent Prosperity Solutions. Please go ahead.
Ashwin Patil
Good afternoon sir. I had one clarification on the other income line item. Is it largely driven by interest income. Subsidies, treasury gains or any one of these? And going forward should we assume this run rate to be stable or is it likely to fluctuate? Thank you.
Padam Prakash Gupta
Showed you. In the beginning of the year the income will be like of the last year it will be plus minus 150 crore. It is like a treasury income to us Also it’s a form of dividends and short term capital gains and somewhat out of interest income from the bonds. Money parked in bonds. At least developments of it will be around 150 cr.
Ashwin Patil
Thank you.
operator
Thank you. The next question is from Shreya Gandhi from CR Kothari and Son Stockbroking. Please go ahead.
Shrey Gandhi
Thanks for the opportunity. My question is regarding the data center unit economics. If you could give details about the interests and depreciation which we will see. And how are you planning to fund the capex?
Ankit Saraiya
Currently we are funding the capis capex for data center through internal accruals and for some time more we will continue to fund it through internal accrual and. And that would be the plan for at least the next year or two. And regarding the unit economics as we’ve spoken about it earlier in Our con calls as well that we can expect a top line of close to around 8 crores per megawatt and a margin of around 75 odd percent.
Shrey Gandhi
And depreciation, like depreciation, it will be depreciable over 10 years period. If I’m not wrong in the last call.
Ankit Saraiya
Yeah it will be depreciable over. I think it will on an average come to 15 years.
Shrey Gandhi
15 years. Okay. And this ECA margin is including the power cost or it will be. The power cost will be a pass through so we don’t have any effect on our margins.
Ankit Saraiya
Power cost will be a pass through in most cases and in case it is not a pass through then obviously it will have an impact on the margin because it will add to the top line and expense on absolute basis.
Shrey Gandhi
Oh okay. Then my next question is regarding the Chennai data country that we have. We are planning it to commission in phases. So if like you mentioned in last call or maybe it’s last to last that you are planning six months every in every sequence you’re planning six megawatt installations. So are we still planning that? And how, what kind of capex are we looking for next two years?
Ankit Saraiya
I think in terms of Chennai we will start our phase two in the calendar year 26 and on every phase we can expect an investment of close to around 225 to 250 cr going forward on total it may not be the annual capex but the total capex for each phase will be around 225 to 250cr.
Shrey Gandhi
Okay and my second question is regarding the other financial assets which we have currently. So what is the. What comprises of other financial assets like it has increased so much in this quarter if you can give light on that.
Padam Prakash Gupta
They are generally you have to create a category called AH7 and those are largely the unbuilt assets belonging to your smart meters. Because the concession is of a long term 10 year nature here it can also comprise of certain work in progress of the ongoing projects but it has not gone up. It is. It remains at around thousand 1100 crore as it was in the first quarter or year closing also. So it is more or less same. It will remain in that range only.
Shrey Gandhi
Okay and my last question is regarding US plan to fund $1 billion in data center. So how are we planning the debt equity mix in the longer time frame.
Ankit Saraiya
You can take? You know obviously at some point of time we will look at an equity partner and hopefully a strategic partner. But having come so ahead in the industry and now reaching A point where we are building more products and services to be served out of our data center itself. We would like to mature out our own selves over the next 18 to 24 months before we seek an equity partner. While that is on the equity side, I can say that in industry on an average we can we’ll see a debt of close to around 55 odd percent and an equity of 45%.
That is where the industry average would lie.
Shrey Gandhi
Okay. Okay. And this is.
operator
We’ll move to the next question. The next question is from Cavit Goyal from Envis Analytics. Please go ahead.
Padam Prakash Gupta
Yeah. You are audible.
Garvit Goyal
Yes sir. Thanks for the. Thanks for the follow up. Sir, just one question. On the working capital side in the consolidated cash flow statement there is one line item other assets that is basically reducing our cash flow from operating activities significantly. So I just want the outlook on the full year basis. Like how our cash flow from operating activities likely to be at the end of March 26th.
Padam Prakash Gupta
It will be at the same level. Something get build out. Some will new one will come in but the number will remain more or less same.
Garvit Goyal
Speaking about the cash flow from operating activity. So are you saying like same level? What do you mean by.
Padam Prakash Gupta
Yeah, if you see the cash flow. We have capitalized our data center in September end and Invoice of about 400 crore was pending to be paid by the subsidiary which was paid out in October 15th. So it is only a. It could say to the extent. If. You correct by that you will find that book that’s come to the Same old level. 770 crore.
Garvit Goyal
Okay, maybe I will take that offline. I’m not able to understand it right now. Okay, that’s fine. And lastly on FY27 when we say we will be excluding data center business guidance from the total EPS guidance of 75, is it that by 27 maybe the first year of its operation are we expecting a negative tat or negative bottom line from the data center operation?
Padam Prakash Gupta
We have not yet worked out yet that kind of details. But I don’t want to be speculative in this conversation. We’ll talk about it when we are closer to the situation in around Q4 discussions of the current year.
Garvit Goyal
And so recently there is a news regarding some renewable energy projects that that didn’t find any PPA or PPA agreement. So these projects are basically rejected. So how do you see the impact of this thing happening on the overall renewable energy adoption in India?
Padam Prakash Gupta
That is what I’m saying. Mr. Goyal, you have asked this question as a first opener of the questionnaire that the industry in renewable energy, renewable power is today stranded because of the evacuation not being in place, feeders being not in place, transmission being not in place. The PPAs are not getting signed because of that. Unless any renewable power asset gets a connectivity. Do you think it is a bankable proposition or a marketable proposition? That is the challenge industry is facing today. That the transmission is a laggard in the value chain over generation. So these issues, since we are not planning these sectors seamlessly right from the location of the generation assets, the deployment of the generation assets and then matching it with the transmission facility in the nearby area and then the power flowing out to some distribution company or to industry this will all some mismatch will always happen with the time and it has started.
It is only a building. So maybe presently this may get covered up by the energy storage solution as much the grid needs energy storage also. So these issues are linked to our deployment inadequacies as a planning process.
operator
Thank you very much. We’ll take that as the last question. I would now like to hand the conference over to the management team for closing comments.
Padam Prakash Gupta
Thank you very much for joining to us today and for your continued trust in Techno Electric. The energy landscape around us is evolving rapidly and we stand ready to lead with innovation, discipline and purpose. From strengthening India’s transmission backbone to building intelligent data center infrastructure, our focus remains clearer to create lasting value through responsible growth. We believe progress is not about base but about purpose, choosing the right opportunities, executing with excellence and growing with integrity. With a strong foundation and a focused vision, Texa Electric is forced to power India’s next phase of transformation. I would like to thank you once again for your confidence and continued partnership.
Thank you very much.
operator
Thank you very much. With that, we conclude today’s conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines.