TRITURBINE - Triveni Turbine

📊 NSE: TRITURBINE 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 14:33

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 reached INR 506.2 Cr, a marginal growth of 1.0% YoY. H1 FY26 revenue stood at INR 964.4 Cr, up 9.9% YoY. The Product and Aftermarket segments are seeing growth both domestically and internationally, with record order bookings of INR 652 Cr in Q2 FY26, up 14% YoY.

Geographic Revenue Split

Domestic sales accounted for INR 224 Cr in Q2 FY26, representing approximately 44% of total revenue but declining 20% YoY. Export sales contribute the remaining 56% and are a primary driver of the favorable revenue mix and higher margins.

Profitability Margins

EBITDA margin for Q2 FY26 was 26.3% (up from 26.1% YoY). PAT margin stood at 18.1% for Q2 FY26. H1 FY26 PAT margin was 17.8%, with a net profit of INR 155.8 Cr.

EBITDA Margin

EBITDA margin improved by 60bps YoY to 26.1% in H1 FY26. Core profitability remains resilient due to a higher share of export and aftermarket revenues, which offset lower-margin domestic projects.

Capital Expenditure

The company maintains a debt-free capital structure with no major debt-funded capital expenditure planned. Growth is supported by strong internal accruals and a cash/investment balance of INR 883 Cr as of March 31, 2024.

Credit Rating & Borrowing

The company holds an [ICRA] AA+ (Stable) long-term rating and an [ICRA] A1+ short-term rating. It remains debt-free, resulting in negligible borrowing costs and high financial flexibility.

⚙️ Operational Drivers

Raw Materials

Key materials include steel, castings, forgings, and specialized alloys for turbine manufacturing. Cost of materials consumed in Q2 FY26 was INR 259 Cr, representing 51.2% of total revenue.

Import Sources

Not specifically disclosed in the documents, though the company operates globally for both sourcing and sales.

Key Suppliers

Specific supplier names are not disclosed; the company relies on a network of specialized vendors and subcontractors for manufacturing components.

Capacity Expansion

Current manufacturing capacity is not a constraint for the company; however, the company is focused on managing the capacity of its vendors and subcontractors to meet a high execution target in H2 FY26.

Raw Material Costs

Raw material costs stood at INR 259 Cr in Q2 FY26. Procurement strategies involve leveraging customer advances to fund working capital and managing vendor coordination to mitigate supply chain bottlenecks.

Manufacturing Efficiency

EBITDA margins improved by 60bps in H1 FY26 despite absolute EBITDA pressure, indicating high manufacturing efficiency and a shift toward higher-value product mixes.

Logistics & Distribution

Not specifically disclosed as a percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

Growth is driven by a record order book of INR 652 Cr, expansion into international markets, and the introduction of new technologies such as CO2 turbines and heat pumps. The settlement of the GE joint venture dispute allows the company to focus on the high-margin 30-100 MW turbine segment.

Products & Services

Industrial steam turbines (up to 100 MW), CO2 turbines, heat pumps, energy storage solutions, and aftermarket services (spare parts and maintenance).

Brand Portfolio

Triveni Turbines, Triveni Energy Solutions Limited (TESL).

New Products/Services

New products include CO2 turbines and heat pumps aimed at the renewable energy and energy efficiency markets; these are gaining traction and provide a runway for stable future revenue.

Market Expansion

Targeting global markets for steam turbines and expanding the aftermarket business internationally to capitalize on the installed base.

Market Share & Ranking

Maintains a strong market position in the industrial steam turbine segment, particularly in the sub-100 MW category.

Strategic Alliances

Settled a long-standing dispute with JV partners regarding Triveni Energy Solutions Limited (TESL). Subsidiary Triveni Turbines DMCC recently entered into a Share Purchase Agreement for further expansion.

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy and energy efficiency. Triveni is positioning itself by developing turbines for the thermal renewable segment and high-efficiency heat pumps.

Competitive Landscape

Faces intense competition in the global turbine market, but the resolution of the GE dispute strengthens its competitive positioning in larger turbine segments.

Competitive Moat

The moat is built on a debt-free balance sheet, a negative working capital cycle driven by customer advances, and specialized engineering capabilities in the 30-100 MW turbine range.

Macro Economic Sensitivity

Highly sensitive to industrial capex cycles in sectors like sugar, steel, and cement. Global economic health impacts the 56% export revenue share.

Consumer Behavior

Industrial customers are increasingly demanding energy-efficient and green-energy-aligned power solutions, driving demand for the company's new R&D-led products.

Geopolitical Risks

Trade barriers or geopolitical instability in key export regions could disrupt the growth of the international business segment.

⚖️ Regulatory & Governance

Industry Regulations

Adheres to Secretarial Standards and manufacturing standards for power generation equipment; operations are subject to pollution control norms and export-import regulations.

Environmental Compliance

The company complies with BRSR (Business Responsibility and Sustainability Report) mandates and focuses on products that support the global quest for a greener environment.

Taxation Policy Impact

The effective tax rate is approximately 28.3% based on Q2 FY26 figures (INR 36.1 Cr tax on INR 127.5 Cr PBT).

Legal Contingencies

Successfully settled the dispute regarding Triveni Energy Solutions Limited (TESL) with former JV partners, removing a significant hurdle for growth in the 30-100 MW segment.