TRIDENT - Trident

📊 NSE: TRIDENT 🏢 Textiles - Cotton/Blended 📅 Last Updated: 12/14/2025 14:33

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew 2.65% YoY to ₹7,010 Cr in FY25 from ₹6,829 Cr in FY24. This was driven by growth in yarn and home textiles, which offset a 12% decline in the paper segment revenue caused by lower average sales realizations and market oversupply.

Geographic Revenue Split

Exports contribute 50-60% of total revenue, with a significant portion derived from the US market. Foreign exchange earnings in FY25 were ₹3,787 Cr compared to ₹4,061 Cr in FY24, reflecting a slight decline in export value.

Profitability Margins

Operating profitability (PBILDT) margin was 12.97% in FY25, down from 13.77% in FY24 due to higher operational costs and slow ramp-up of new capacities. However, Q1FY26 margins improved significantly to 17.10% from 12.93% YoY due to lower input costs and a shift toward premium/luxury segments.

EBITDA Margin

PBILDT margin stood at 12.97% for FY25. Core profitability is supported by 8-9% export incentives (RoDTEP/RoSCTL) and integrated operations, though it remains susceptible to a 50% US tariff, with an additional 25% levy effective after August 27, 2025.

Capital Expenditure

Trident announced a ₹2,000 Cr expansion plan, with ₹1,500 Cr allocated to Barnala for Terry Towel and paper modernization and ₹500 Cr for a corporate office and capacity-building center in Mohali. Routine maintenance capex is estimated at ₹150 Cr per annum.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE AA; Stable and short-term facilities at CARE A1+. Debt protection is strong with PBILDT interest coverage at 6.99x in FY25. Total debt reduced to ₹1,635 Cr in FY25 from ₹2,126 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include cotton (for textiles), wheat straw (primary fiber for paper), wood pulp, and chemicals. Cotton and pulp price volatility directly impacts the margins of the textile and paper segments respectively.

Import Sources

Wheat straw is sourced locally from Punjab, the largest wheat-cultivating state in India. Other materials like specialized chemicals and pulp are subject to global price trends and international sourcing.

Capacity Expansion

Current capacity includes 90,000 MTPA for Terry Towels, 63 million meters per annum for Bed Sheets, 1,75,000 MTPA for Paper, and 1,15,000 MTPA for Sulphuric Acid. Planned expansion includes scaling up Terry Towel production in Barnala under a ₹1,500 Cr investment.

Raw Material Costs

Raw material costs are a major component of the cost structure. The paper segment maintains high margins (25-30%) by using cost-effective wheat straw instead of wood pulp. Textile margins are sensitive to cotton price fluctuations which vary based on monsoon and crop yields.

Manufacturing Efficiency

Capacity utilization in the yarn segment is high, while bed linen utilization was low at ~54% in FY25 due to the recent commencement of additional capacity. Integrated operations allow for better cost control.

Logistics & Distribution

Distribution involves international marketing offices in Dubai, New York, England, and Singapore to support the 50-60% export revenue share.

📈 Strategic Growth

Growth Strategy

Growth is targeted through a ₹2,000 Cr investment in Punjab to scale Terry Towel production and modernize paper facilities. The company is also diversifying its customer base into Europe, Middle East, and Australia to reduce US dependency and focusing on luxury/premium product segments.

Products & Services

Yarn, Terry Towels (Bath Linen), Bed Sheets (Bed Linen), Writing & Printing Paper (WPP), and Sulphuric Acid.

Brand Portfolio

Trident.

New Products/Services

Focusing on luxury and premium segments in textiles to improve realizations; specific new product revenue contributions are not disclosed.

Market Expansion

Targeting expansion in Europe, Middle East, Australia, and Asia to mitigate customer concentration risk and US trade policy exposure.

Market Share & Ranking

Trident is the second-largest exporter of home textile products from India.

🌍 External Factors

Industry Trends

The textile industry is facing headwinds from high tariffs and cyclicality. There is a growing shift toward sustainable supply chains and renewable energy integration to meet global ESG standards.

Competitive Landscape

Faces intense competition from global players and other Indian exporters. Competitors in China, Pakistan, and Vietnam benefit from different bilateral trade relationships.

Competitive Moat

Moat is built on integrated operations (yarn to home textiles), cost leadership in paper via wheat straw usage, and long-standing relationships with global retailers. These are sustainable but currently tested by aggressive international trade policies.

Macro Economic Sensitivity

Highly sensitive to global economic conditions and US consumer spending, as a majority of home textile revenue is export-driven.

Consumer Behavior

Shift toward premium and luxury home textiles is being leveraged by the company to improve PBILDT margins.

Geopolitical Risks

Trade barriers, specifically US tariffs and potential policy shifts in competing nations like China, Pakistan, or Vietnam, pose significant risks to market share.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by pollution norms (water-intensive sectors), export incentive schemes (RoDTEP/RoSCTL), and international trade tariffs (US Section 301/other duties).

Environmental Compliance

Trident is investing in solar (51.98 MW) and transitioning from coal to reduce its carbon footprint. ESG compliance is critical for maintaining relationships with global retailers.

Taxation Policy Impact

The company is subject to standard corporate tax; however, it received assessment orders for AY2021-22 and AY2022-23 following an IT department search in 2023. Appeals are pending.

Legal Contingencies

Pending appeals before the Commissioner of Income Tax (Appeals) regarding assessment orders for AY2021-22 and AY2022-23 following an Income Tax department search in October 2023.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of the 50% US tariff on revenue and profitability in FY26. Cotton price volatility and global economic slowdowns also present significant risks.