Techno Electric halves data center target, pushes ₹75 EPS goal to FY28
Management denied setting a ₹100 cr data center revenue target for FY27, contradicting prior calls. The stock's FY27 earnings guidance is now ₹60 EPS, not ₹75.
— 1 earlier story on Techno Electric & Engineering Company Ltd. →What's new
- Data center capacity target cut to 15-20 MW by Dec 2027 from 50 MW.
- FY27 revenue guided to ₹4,000 cr with EPS of ₹60; the ₹75 EPS target deferred to FY28.
- Management denied ever setting a ₹100 cr data center revenue target for FY27.
Why this matters
The company is publicly walking back targets it previously set. Cutting the data center goal by more than half and pushing the earnings milestone out by a year removes a core part of the investment thesis. The denial of prior guidance on the ₹100 cr target raises questions about internal communication and credibility.
What we're watching
- Whether the ₹75 EPS target for FY28 is treated as firm or open to further deferral.
- Any updated capex or timeline for the scaled-back data center plan.
- Management's explanation for the discrepancy between prior guidance and the new denial.
The full read
Techno Electric is pulling in its horns. The company has cut its data center capacity target to 15-20 MW by December 2027, from the 50 MW it previously promised. The earnings target has moved too: FY27 guidance is now ₹60 EPS on ₹4,000 crore revenue, with the ₹75 EPS milestone pushed to March 2028. The most jarring part is the denial. Management said it never set a ₹100 crore data center revenue target for FY27, contradicting explicit guidance from prior calls. This is not a simple guidance cut. It is a retraction of a number management itself put into the public domain. That is a different, and worse, signal.
Questions answered
- How much did Techno Electric reduce its data center capacity target?
- The target was cut to 15-20 megawatts by December 2027, down from the previous goal of at least 50 megawatts. That is a reduction of more than 60%.
- What is the new FY27 earnings guidance?
- Techno Electric guided to ₹4,000 crore in revenue and ₹60 in EPS for FY27. The previously promised ₹75 EPS is now targeted for March 2028.
- What did management say about the ₹100 crore data center revenue target?
- Management denied ever setting a ₹100 crore revenue target for the data center business in FY27, which contradicts explicit guidance given in earlier conference calls.
- What is the significance of the denied target?
- It creates a direct conflict between what management said previously and what it is saying now. For investors, this complicates the process of relying on forward guidance from the company.
Techno Electric & Engineering Company Ltd.
Latest quarter · Mar 2026
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All notes on TECHNOE →- 26 May 2026 · 4:56 PM IST Techno Electric halves data center target, pushes ₹75 EPS goal to FY28
- 42d ago Techno Electric's profit growth splits wide, auditor flags ₹88.5 cr receivables again