Triveni Turbine Limited — Q1 FY26 earnings call

Call held 5 Aug 2025

Management summary

Triveni Turbine reported a disappointing Q1 FY26 with a 20% revenue decline, primarily attributed to the deferment of Mechanical Run Tests (MRTs) and dispatches caused by geopolitical conflicts in the Middle East and the India-Pakistan border. However, the company's long-term outlook remains robust, supported by a record order book and a massive surge in domestic and North American enquiry pipelines. Management expects performance to catch up by H1 or the 9-month mark, with significant growth projected for Q4 FY26.

Highlights

  • Revenue stood at ₹3.71 billion, a decline of 20% YoY due to geopolitical deferments

  • EBITDA margin expanded 100 bps YoY to 25.8%, despite lower turnover

  • Outstanding order book reached a record ₹20.74 billion, up over 20% YoY

  • Quarterly order booking declined 16% YoY to ₹5.36 billion, impacted by export demand

  • Domestic enquiry book grew by 131%, while US enquiry book surged over 175%

  • Profit After Tax (PAT) was ₹644 million, a decline of 20% YoY

  • Cash and investments remained strong at ₹10.05 billion

  • Launched India's first CO2-based high-temperature heat pump with a COP of 6

Concerns

  • Geopolitical Conflicts

Key financials

  1. Revenue 3.71 Bn -20%YoY
  2. EBITDA Margin 25.8%
  3. PAT 644 Mn -20%YoY
  4. Order Book 20.74 Bn +20%YoY
  5. Order Inflow 5.36 Bn -16%YoY
  6. Cash and Investments 10.05 Bn

What they filed

Q1 FY27: revenue up 15.1%, net profit down 25.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue469 441 490 345 479 +2%584 +32%602 +23%397 +15%
EBITDA109 99 119 77 119 +9%136 +37%103 −13%51 −34%
Net profit90 121 94 67 96 +7%95 −21%79 −16%50 −25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthEnquiry Book Growth
Domestic-24%131%
Export-16%-5%
Aftermarket——

Guidance & targets

Revenue

  • Revenue Growth Revenue · H1 FY26 · Medium confidence exhibiting growth over the previous year
    You should expect the Company from a year-on-year performance to sort of meet in H1 or by 9 months, it should be exhibiting growth over the previous year and significant growth in Q4 versus last year.

    — Nikhil Sawhney, Vice Chairman and Managing Director

Market Share

  • New Product Revenue Contribution Market Share · next 2-3 years · Medium confidence not contribute more than a couple of percentage points
    But we would have to say that these new product introductions would not contribute more than a couple of percentage points to our revenue.

    — Nikhil Sawhney, Vice Chairman and Managing Director

Other

  • Order Booking Growth Other · FY26 · High confidence growth in order booking
    But overall, on a balanced basis, we seem to think that the year presents as good opportunities as we've had for order booking in the previous year, but obviously, with an expectation of growth in order booking for this current financial year.

    — Nikhil Sawhney, Vice Chairman and Managing Director

Risks & concerns

  • Geopolitical Conflicts

    high

    Conflicts in the Middle East and India-Pakistan border led to travel advisories, delaying customer inspections (MRTs) and dispatches.

    Management acknowledged

  • US Trade Policy and Tariffs

    medium

    Uncertainty regarding tariff levels in the US is causing customers to defer order placements.

    Both acknowledged

  • Lumpy Revenue Recognition

    medium

    As the company moves into larger MW categories and API contracts, revenue recognition becomes more sensitive to individual project delays.

    Management acknowledged

Areas of evasion (2)

  • Specific rupee figures for deferred revenue
  • Exact margin profile for the NTPC CO2 project

Q&A highlights

2 direct
US Subsidiary Performance and Tariffs Direct
The U.S. subsidiary that this current quarter contributed to about ₹6 crore loss... we think that the uncertainty, given the direct tariffs with India presents some uncertainty in finalising the orders.

Reveals a specific financial drag from the US operations and highlights the risk of trade policies on order finalization.

Asked by Bimal Sampat

NTPC CO2 Energy Storage Project Margins Partial
As a company we don't work on a subsidised basis... you wouldn't know full cost until we actually end up finishing the job. We have obviously taken a number of contingency factors.

Management is cautious about disclosing margins for new technology projects but confirms they are not loss-making.

Asked by Harshit Patel

Vendor Switching and Order Cancellations Direct
I would think that the only thing that you have from a customer's perspective is delay or deferment of orders, not cancellation of orders once an order is placed.

Clarifies that while revenue is deferred, the order book remains firm and non-refundable advances protect against cancellations.

Asked by Priyesh Babariya

2 min read 5 chapters

Detailed narrative

Geopolitical Headwinds Disrupt Execution

Q1 FY26 revenue declined by 20% to ₹3.71 billion, primarily due to geopolitical tensions in the Middle East and the India-Pakistan border. These conflicts led to travel advisories that prevented customers from attending Mechanical Run Tests (MRTs) and inspections, which are contractual prerequisites for dispatch and revenue recognition. Management described this as a 'pause' in their 17-quarter growth streak, noting that while dispatches were deferred, no orders were cancelled.

Record Order Book and Enquiry Surge

Despite the execution delays, the company's outstanding order book reached a record ₹20.74 billion, representing over 20% YoY growth. The enquiry pipeline shows massive traction, with the domestic enquiry book up 131% and the North American enquiry book surging by over 175%. This surge is driven by sectors like steel, cement, and sugar in India, and energy transition themes globally, providing high visibility for future quarters.

Innovation: India's First CO2-based Heat Pump

Triveni Turbine formally introduced a CO2-based high-temperature ultra-efficient heat pump, developed in collaboration with IISc Bangalore. The product delivers heat up to 122°C with a best-in-class Coefficient of Performance (COP) of 6, which is 3x more efficient than conventional electric heating. While management expects this to contribute only a few percentage points to revenue in the next 2-3 years, it marks a significant step into energy transition products.

Domestic Market Revival and Market Share Gains

The domestic market has seen a significant revival, with Triveni's market share in its operating segments increasing to 53-55% from 46-48% last year. The enquiry pipeline is particularly strong in steel and cement, which were previously subdued. Management noted that domestic deliveries are proceeding as per plan and are not impacted by the dispatch deferments seen in the export segment.

International Challenges and Subsidiary Performance

The international market presented a mixed bag, with a 5% decline in the overall enquiry book due to slowdowns in SAARC and Southeast Asia. The US subsidiary reported a ₹6 crore loss for the quarter, attributed to investment in overheads and customer reluctance due to trade/tariff uncertainties. However, the API drive turbine market remains a bright spot, with a 250% YoY growth in the international enquiry pipeline for oil and gas applications.

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