TRIVENI - Triven.Engg.Ind.

📊 NSE: TRIVENI 🏢 Sugar 📅 Last Updated: 12/14/2025 14:33

💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, consolidated revenue grew 18.4% YoY to INR 3,300 Cr. Segment-wise: Sugar & Allied grew 13% to INR 2,195.83 Cr; Distillery grew 25.7% to INR 1,489.84 Cr; Power Transmission grew 2.1% to INR 160.22 Cr; and Water business grew 19.8% to INR 108.50 Cr.

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company mentions expansion into the MENA region and international opportunities in Asia and Africa via EXIM Bank financing.

Profitability Margins

Consolidated EBITDA margin for FY25 was 9.4%, a decline from 13.2% in FY24. Profit After Tax (PAT) for H1 FY26 stood at INR 23.5 Cr, a significant increase from INR 8.6 Cr in H1 FY25. Water business PBIT margins improved by 124 bps to 14.0% in FY25 due to cost optimization.

EBITDA Margin

Consolidated EBITDA was INR 533.75 Cr in FY25, down 22.5% YoY from INR 688.42 Cr. The margin compression was driven by lower sugar sales volumes and reduced by-product generation despite a 3% improvement in sugar realization prices.

Capital Expenditure

While specific future Capex totals are not provided, the company recently commissioned a 200 KLPD distillery at Rani Nangal and is investing in PPP/HAM ventures for the Water business. Historical growth was supported by a 38% revenue CAGR during FY 2020-25.

Credit Rating & Borrowing

ICRA has assigned a Long-term rating of [ICRA]AA+ and a Short-term rating of [ICRA]A1+. Ratings were placed on 'Watch with Developing Implications' in December 2024 following the announcement of a corporate restructuring scheme.

⚙️ Operational Drivers

Raw Materials

Sugarcane (primary for sugar/ethanol), Maize and Grain (feedstock for multi-feed distilleries), and Steel/Alloys (for Power Transmission engineering). Maize prices rationalized in Q2 FY26, improving distillery profitability.

Import Sources

Sugarcane is sourced locally from Uttar Pradesh (units in Muzaffarnagar, Sabitgarh, Milak Narayanpur, and Rani Nangal). Grains are procured through a robust domestic warehousing program.

Key Suppliers

Not specifically named, but the company relies on a vast network of local farmers for sugarcane and domestic grain suppliers for its multi-feed distilleries.

Capacity Expansion

Current distillery capacity is 860 KLPD across five units (260 KLPD at MZN, 200 KLPD each at SBT, MNP, and RNG). The company recently acquired a 61.77% stake in Sir Shadi Lal Enterprises Limited to further expand sugar and ethanol capacity.

Raw Material Costs

Raw material costs are highly seasonal; in FY25, lower sugarcane crush led to lower by-product generation (molasses/bagasse), which adversely impacted the cost structure despite higher sugar prices.

Manufacturing Efficiency

Focus on enhancing sugarcane crush rates and sugar quality through judicious investment in facilities. Water business achieved higher PBIT through cost optimization and project-specific savings.

Logistics & Distribution

Distribution focus for IMFL (Indian Made Foreign Liquor) involves strengthening channels to enhance market accessibility and presence.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by the Ethanol Blended Petrol Program (increasing distillery volumes), expansion into PPP/HAM projects in the Water segment, and international expansion of the Power Transmission business through the Swiss subsidiary TPTGmbH. The company is also pursuing a Composite Scheme of Arrangement to simplify corporate structure.

Products & Services

Refined Sugar, Ethanol, Extra Neutral Alcohol (ENA), Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), High-speed Turbo Gearboxes, and Water/Wastewater Treatment EPC and O&M services.

Brand Portfolio

Shagun Sugar, Triveni Sugar.

New Products/Services

Expansion into the IMFL segment and premium private label sugar products. The Water business is shifting toward higher-margin PPP and HAM projects.

Market Expansion

Targeting the MENA region, Asia, and Africa for water projects and global markets for turbo gearboxes via the newly acquired Swiss subsidiary.

Market Share & Ranking

One of India's largest integrated sugar and ethanol manufacturers and a leading player in engineered-to-order turbo gearboxes.

Strategic Alliances

Acquisition of 61.77% stake in Sir Shadi Lal Enterprises Limited (SSEL) and 100% stake in Triveni Power Transmission GmbH (Switzerland).

🌍 External Factors

Industry Trends

The industry is shifting toward green energy (ethanol blending) and sustainable water management (PPP/HAM models). Triveni is positioning itself as a diversified conglomerate to mitigate the cyclicality of the sugar business.

Competitive Landscape

Competes with other large integrated sugar mills in India and global engineering firms in the power transmission and water treatment sectors.

Competitive Moat

Moat is built on integrated operations (sugar-to-ethanol), cost leadership in engineering, and a strong order book of INR 1,520 Cr in the Water business. These are sustainable due to high entry barriers in specialized engineering and long-term government contracts.

Macro Economic Sensitivity

Highly sensitive to government ethanol blending mandates and sugar export/pricing policies. GDP growth in industrial sectors drives demand for turbo gearboxes.

Consumer Behavior

Increasing demand for branded and packaged FMCG sugar products (Triveni/Shagun brands) and premium alcohol products.

Geopolitical Risks

Geopolitical tensions in West Asia and Eastern Europe have caused uncertainty for global customers, leading to subdued order booking in the engineering segment in Q2 FY26.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Essential Commodities Act (for sugar), Ethanol Blending Program (EBP) targets, and NCLT regulations for corporate restructuring.

Environmental Compliance

Heavy focus on ESG through ethanol production and wastewater management; specific compliance costs in INR are not disclosed.

Taxation Policy Impact

Effective tax rate was approximately 26.4% in FY25 (INR 89.22 Cr tax on INR 337.64 Cr PBT).

Legal Contingencies

The company is currently undergoing a Composite Scheme of Arrangement involving Sir Shadi Lal Enterprises and Triveni Power Transmission, pending final approvals from the NCLT Allahabad Bench.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes in ethanol pricing or feedstock diversion (sugarcane juice vs. molasses) could impact distillery margins by 10-15%.

Geographic Concentration Risk

High concentration of manufacturing assets in Uttar Pradesh, making the company vulnerable to state-specific agricultural policies and weather patterns.