Triveni Turbine Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Triveni Turbine reported a quarter of record-breaking order inflows and a peak order book, despite a flat revenue performance and a 9% decline in H1 revenue. Management remains confident in a 'back-ended' growth trajectory for FY26, expecting Q3 and Q4 to compensate for earlier execution delays. While domestic demand is surging in steel and cement sectors, the company is navigating significant tariff uncertainties in the US market.

Highlights

  • Record order booking of ₹6.52 billion in Q2, up 14% YoY, driven by 52% growth in domestic orders

  • Closing order book reached an all-time high of ₹22.20 billion, up 24% YoY

  • Revenue from operations stood at ₹5.06 billion for Q2, showing flat growth compared to the previous year

  • H1 FY26 revenue declined 9% YoY to ₹8.78 billion due to Q1 execution delays and uncertainties

  • Aftermarket segment contribution enhanced to 35% of turnover in Q2 FY26 vs 33% in Q2 FY25

  • Export sales increased 27% YoY to ₹2.82 billion, contributing 56% of total Q2 sales

  • US market facing headwinds with a 56% tariff on products, leading to order finalization delays

  • Acquired remaining 30% stake in South African subsidiary TSE Engineering for ~₹56 million

Concerns

  • US Import Tariffs

Key financials

  1. Revenue ₹506 Cr 0%YoY
  2. EBITDA ₹133 Cr +1%YoY
  3. PAT ₹91.4 Cr +1%YoY
  4. Order Inflow ₹652 Cr +14%YoY
  5. Order Book ₹2,220 Cr +24%YoY

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

Share of Revenue
₹507 Cr Total
  • Product Segment ₹329 Cr 64.9%
  • Aftermarket Segment ₹178 Cr 35.1%

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence Growth (Back-ended)
    Q3 and Q4 will represent higher growth rates in terms of revenue... I'm happy to say that it would be growth. A single-digit growth number is very little, and I won't be particularly satisfied with that.

    — Nikhil Sawhney, VCMD

Market Share

  • Domestic Order Growth Rate Market Share · next couple of years · Medium confidence 20-25%
    But to say if it would grow by 20-plus percent or 25%, yes, I think we could anticipate that to be a reasonable growth rate annualised for the next couple of years.

    — Nikhil Sawhney, VCMD

Capacity

  • Sompura Facility Expansion Completion Capacity · FY27 · High confidence June-July 2026
    We already have an expansion underway in our Sompura facility... which will be ready by June, July, which will add further capability.

    — Nikhil Sawhney, VCMD

Other

  • NTPC ESS Project Commissioning Other · Q1 FY27 · High confidence Q1 FY27
    this project is currently under execution, and it is stated to be commissioned in the first quarter as per plan, as per our commitment as well in first quarter of FY 2027.

    — Nikhil Sawhney, VCMD

Risks & concerns

  • US Import Tariffs

    high

    Current tariffs of ~56% are causing customers to delay advances and order finalization in the US market.

    Both acknowledged

  • H1 Revenue and Profit Decline

    medium

    H1 revenue and PAT both down ~9% YoY, putting significant pressure on Q3 and Q4 execution to meet annual growth targets.

    Management acknowledged

  • Global Trade Uncertainties

    medium

    Export order booking declined 19% YoY in Q2 due to geopolitical hostilities and trade policy uncertainties.

    Management acknowledged

Areas of evasion (1)

  • Specific dollar value of the 7GW global utility turbine market.

Q&A highlights

3 direct
US Market Uncertainty and Tariffs Direct
currently, our tariff is somewhere in the region of about 56-odd percent for our product range... uncertainty people are fine waiting a little bit. We think that that will get sorted out in the next couple of quarters.

Reveals a massive 56% tariff hurdle in the US, explaining why export orders declined 19% despite high enquiry levels.

Asked by Bimal Sampat

Domestic Execution vs. Margin Impact Direct
domestic sales do carry a lower profit margin... But having said that, we think overall as a company, these will not have a material impact.

Addresses investor concerns that a shift toward domestic revenue (which grew 52% in orders) might dilute overall corporate margins.

Asked by Teena Virmani

New Market Entry: Utility-Sized Turbines Direct
this utility segment... this market will be something like around 50, 55 turbines market there... We are approved by all EPCs as well as NTPC.

Identifies a new growth vertical in auxiliary turbines for large utility projects, previously dominated by BHEL and imports.

Asked by Chirag Muchhala

2 min read 5 chapters

Detailed narrative

Order Book Resilience vs. Execution Lag

Triveni Turbine is currently experiencing a divergence between its sales and its order book. While H1 revenue declined 9% to ₹8.78 billion, the closing order book hit a record ₹22.20 billion, up 24% YoY. Management attributes the revenue dip to 'extraordinary situations' in Q1 that deferred inspections and dispatches. They are now banking on a heavily back-ended FY26, with Q3 and Q4 expected to show significantly higher growth rates to recover the lost ground.

US Market Headwinds and Tariff Impact

The US market, previously a key growth driver, is currently a source of uncertainty. Management revealed that their products face a 56% tariff, which has led to a 19% decline in export order bookings for the quarter. While enquiries remain robust, customers are delaying advances as they wait for clarity on the tariff structure. To mitigate this, Triveni is pivoting its US strategy toward the refurbishment market, which is not impacted by these tariffs and is showing 'buoyant' demand.

Domestic Market Rebound

Domestic demand has seen a sharp recovery, with order inflows growing 52% YoY to ₹4.07 billion. This growth is broad-based across steel, cement, and sugar sectors. Furthermore, the company is successfully penetrating the utility turbine auxiliary market, a segment previously dominated by BHEL and imports. Management expects domestic order booking to sustain a 20-25% annualized growth rate over the next few years.

Strategic Expansion into New Technologies

Triveni is diversifying its product portfolio beyond traditional steam turbines. The company has established a demo unit for a world-first CO2-based heat pump at its Peenya facility and has picked up commercial orders for Mechanical Vapor Recompression (MVR) compressors. The first MVR units are scheduled for delivery in Q1 FY27, signaling a move toward higher-technology, energy-transition-aligned industrial equipment.

Capacity and Infrastructure Readiness

To support the record order book, Triveni is expanding its Sompura facility, with completion expected by June-July 2026. The company recently commissioned a new test bed for turbines and rotating equipment. Management emphasized that they are not capacity-constrained at the mother-plant level but are focused on coordinating vendor and subcontractor capacities to handle the expected surge in Q3 and Q4 execution.

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