Detailed Narrative
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.
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.
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.
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.
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.