Triveni Turbine Reports Mixed Q2 FY27 Results
Triveni Turbine Ltd, a prominent manufacturer of industrial steam turbines, has announced its second-quarter results for fiscal year 2027, revealing a significant 41.6% year-on-year (YoY) drop in consolidated net profit, which settled at Rs 53.3 crore. This decline contrasts with the Rs 91.2 crore reported in the same quarter of the previous financial year.
Revenue from operations also saw a modest dip, falling 3% to Rs 491 crore in Q2 FY27 from Rs 506.2 crore previously. The company's domestic business, however, showed robust growth, with sales surging 51.8% YoY to Rs 340 crore. This strong domestic performance was offset by a 46.6% decline in export sales, which accounted for 30.7% of total revenue, down from 55.7% in Q2 FY26.
Margin Contraction Impacts Profitability
A primary factor contributing to the reduced profitability was a sharp contraction in margins. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell 35.5% YoY to Rs 85.8 crore, with the EBITDA margin shrinking to 17.5% from 26.3% in Q2 FY26. Profit Before Tax (PBT) also slipped 39.2% YoY to Rs 75.7 crore, with its margin at 15.4% compared to 24.6% in the year-ago period.
Chairman & Managing Director Dhruv M. Sawhney acknowledged the margin pressure, attributing it to a less favorable product mix from orders secured approximately a year ago, the execution of a strategic order, and increased input and logistics costs. He expressed confidence that these pressures would ease, leading to improved profitability in subsequent quarters.
Strong Order Book Provides Future Visibility
Despite the challenges in profitability, Triveni Turbine showcased impressive order book growth. The company recorded its highest-ever quarterly order booking of Rs 764 crore, marking a 17.2% YoY increase. Export order bookings were particularly strong, rising 49.8% YoY and contributing 48.1% to the total new orders.
This surge in new orders propelled the company's closing order book to a record Rs 2453 crore, representing a 10.5% increase year-on-year from Rs 2219.7 crore. This robust order inflow, driven by both exports and improving domestic demand, provides solid medium-term execution visibility for Triveni Turbine.
Analyst Outlook and Stock Performance
Global brokerage UBS noted that while weak margins might weigh on the stock in the near term, the strong order book and management's expectation of a better second half of the fiscal year could provide an upside. The brokerage had previously indicated a potential 63% upside for the stock post-Q2 earnings.
In recent trading, Triveni Turbine's stock remained largely flat, hovering around Rs 509.75 against a previous close of Rs 514.40. The company's market capitalization stood at Rs 16,205 crore. The stock has seen a 52-week low of Rs 428.50 and a 52-week high of Rs 787.85 during the current fiscal year.