Triveni Turbine

Triveni Turbine achieved record Q3 revenue of ₹624 crores and EBITDA of ₹154 crores, growing 24% and 16.9% YoY respectively. However, order booking for the quarter dipped to ₹391 crores, a 26% YoY decline. Management attributed this primarily to a ₹200+ crore shortfall caused by customer advances not being received before the quarter-end, rather than a lack of demand. They expect these deferred orders to flow into Q4, which is projected to be a record-breaking quarter for both revenue and order inflows.

The U.S. subsidiary remains a strategic focus despite incurring a 9M loss of ₹21.7 crores. Management highlighted a 'multi-hundred million dollar' enquiry book in the U.S., particularly from data centers and combined cycle applications. The reduction in U.S. import duties to 18% is expected to accelerate order finalizations. While FY26 remains an investment year, management anticipates the U.S. subsidiary will reach break-even or better in FY27, serving as a launchpad for significant growth in FY28.

Triveni is aggressively diversifying its product portfolio beyond traditional steam turbines. The company has received its first order for CO2-based heat pumps and has an enquiry book exceeding 100 units. Additionally, the Mechanical Vapor Recompression (MVR) segment has secured 7-8 initial orders currently under execution. Management is particularly bullish on energy storage applications, viewing them as a unique medium-term market opportunity that will combine multiple Triveni products into application-specific solutions.

The Refurbishment and Aftermarket segments continue to be high-margin pillars for the company. Despite a slight dip in dispatches this quarter, management remains confident in the global refurbishment pipeline, particularly in geothermal and utility segments. The acquisition of 100% control in TSE Engineering in South Africa allows Triveni to unify operations and expand its service scope across Sub-Saharan Africa, targeting the utility segment for large-scale refurbishment.

The order book mix is currently seeing a shift toward the domestic market, which has shown robust double-digit growth across steel, cement, sugar, and distillery segments. While international markets saw a temporary dip due to geopolitical issues and tariff uncertainties, management expects the long-term mix to stabilize at approximately 55% export and 45% domestic. Export markets remain more lucrative from a margin perspective and are essential for validating the company's technological competitiveness.