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    Triveni Turbine

    TRITURBINEGood
    Capital Goods·12 May 2025
    Management Summary

    Triveni Turbine delivered a standout performance in FY25, achieving record highs across all key financial metrics despite a 10% decline in the overall domestic market. The company successfully pivoted toward international markets and higher-margin aftermarket services, which now command a significant portion of the order book. Management expressed high confidence in sustaining growth in FY26, backed by a robust enquiry pipeline and strategic forays into niche technologies like API turbines and CO2-based energy storage.

    Highlights

    8
    • Highest ever annual Revenue of ₹20.06 billion, representing a 21% YoY increase.

    • EBITDA reached a record ₹5.18 billion, up 36% YoY with margins expanding 280 bps to 25.8%.

    • PAT grew 33% YoY to ₹3.59 billion, marking the 17th consecutive quarter of growth.

    • Record annual Order Booking of ₹23.63 billion, up 26% YoY, driven by a 38% surge in product orders.

    • Closing Order Book stands at a record ₹19.09 billion, providing strong visibility for FY26.

    • Export order book grew 36% YoY to ₹10.9 billion, now contributing 57% of the total order book.

    • Strategic entry into CO2 energy storage with a ₹2.90 billion (₹290 crore) order from NTPC Kudgi.

    • Board recommended a final dividend of 200% (₹2 per share), totaling 400% for the full year.

    What Changed2

    vs Q1 FY26

    Tone shiftMixed → GoodGuidance items3 → 4 (+1)

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue$20.06B+21%YoY
    2. 02EBITDA$5.18B+36%YoY
    3. 03EBITDA Margin25.8%
    4. 04PAT$3.59B+33%YoY
    5. 05Order Booking$23.63B+26%YoY

    Segment breakdown

    • Exports10.9 billion57.1%
    • Domestic8.2 billion42.9%
    Donut· Share of Outstanding Order Book

    Guidance & targets

    4
    CategoryTargetPriority
    Capex
    Total Capex Forecast
    ₹1.65 billion
    High
    Market Share
    Aftermarket Revenue Share
    1% increase annually
    Medium
    Headcount
    US Team Size
    Twice the size
    Medium
    Revenue
    Revenue Growth
    Growth in line with order book
    High

    Risks & concerns

    5
    RiskSeverity

    Domestic Market Volatility

    The Indian market declined by 10% in FY25; Q4 was particularly muted due to elections and sector-specific deferrals.Both acknowledged

    medium

    Order Book Quality / Slow Moving Orders

    Management proactively removed ₹1.40 billion (₹140 crore) of slow-moving orders from the book to maintain quality.Management acknowledged

    low

    US Tariff Uncertainties

    Tariff issues in the US have led to some orders being booked through the Indian entity instead of the US subsidiary.Both acknowledged

    medium

    Areas of Evasion(2)

    • Specific market size for API turbines
    • Quantifying the exact enquiry pipeline value

    Q&A highlights

    3

    “receivables have gone up... because of some dispatches that were bunched up in March... largely reversed back to our normal stance of low receivables in April, May.”

    Explains a potential red flag regarding cash flow and ensures the spike was a timing issue rather than credit risk.

    asked by Harsh Tewaney, Ashmore Group

    2 min read5 chapters

    Detailed Narrative

    01

    Record-Breaking Financial Performance in FY25

    Triveni Turbine achieved its highest-ever annual revenue of ₹20.06 billion, a 21% increase YoY. Profitability saw even sharper growth, with EBITDA rising 36% to ₹5.18 billion and PAT increasing 33% to ₹3.59 billion. This performance was underpinned by significant margin expansion, with EBITDA margins reaching 25.8%, up 280 basis points from the previous year, driven by a favorable product mix and higher export contributions.

    02

    Order Book Strength and Export Dominance

    The company ended FY25 with a record closing order book of ₹19.09 billion, up 23% YoY. A key highlight was the 36% growth in the export order book, which now stands at ₹10.9 billion and accounts for 57% of the total backlog. Product order bookings were particularly strong, growing 38% to ₹17.41 billion, while the international enquiry pipeline grew by over 30%, providing high visibility for the coming fiscal year.

    03

    Strategic Entry into CO2 Energy Storage

    Management highlighted a landmark ₹2.90 billion (₹290 crore) order from NTPC Kudgi for a 160-MW hour long-duration energy storage project using carbon dioxide technology. This project, developed with Italian partner Energy Dome, represents a strategic foray into sustainable innovative solutions. Triveni's scope in this project exceeds 50% value addition, and while management is cautious about immediate scalability, they expect to provide more clarity on this segment by Q3-Q4 FY26.

    04

    International Expansion and US Market Strategy

    Despite a ₹20-25 crore investment loss in the US subsidiary, management remains bullish on the North American market. They are doubling the US team size and expanding testing infrastructure. To mitigate tariff uncertainties, the company is flexibly booking some North American orders through its Indian entity. The API turbine segment is also seeing robust international demand, particularly in the Middle East and Europe, contributing to the record product order bookings.

    05

    Aftermarket Business as a Margin Accretion Engine

    The aftermarket segment continues to be a critical driver of high margins. Management expects the share of aftermarket revenue to increase by approximately 1% annually. While strong product sales growth sometimes 'overshadows' the aftermarket's percentage contribution, the segment is growing robustly in absolute terms, particularly in refurbishment services and high-value-added contracts in regions like South Africa.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.