Triveni Turbine Limited — Q4 FY25 earnings call

Call held 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

  • 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.

Key financials

  1. Revenue 20.06 Bn +21%YoY
  2. EBITDA 5.18 Bn +36%YoY
  3. EBITDA Margin 25.8%
  4. PAT 3.59 Bn +33%YoY
  5. Order Booking 23.63 Bn +26%YoY
  6. Closing Order Book 19.09 Bn +23%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 Outstanding Order Book
19.1 Bn Total
  • Exports 10.9 Bn 57.1%
  • Domestic 8.2 Bn 42.9%

Guidance & targets

Capex

  • Total Capex Forecast Capex · FY26 · High confidence ₹1.65 billion
    The total capex forecast for this current year, FY 26 is about ₹1.65 billion, which includes a carry-forward of about ₹0.44 billion from the previous financial year which is FY 25.

    — Nikhil Sawhney, Vice Chairman and MD

Market Share

  • Aftermarket Revenue Share Market Share · Consistently · Medium confidence 1% increase annually

    From 33% today

    Yes, we'd expect it to rise by 1% odd every year consistently so that it's contributing more.

    — Nikhil Sawhney, Vice Chairman and MD

Headcount

  • US Team Size Headcount · next 2-3 years · Medium confidence Twice the size

    From Current size today

    we are looking at expanding it to almost twice the size that we had in the first year, in the second and third year.

    — Sachin Parab, COO

Revenue

  • Revenue Growth Revenue · FY26 · High confidence Growth in line with order book
    we are confident of the growth in revenue of a good manner in FY 26 as well.

    — Nikhil Sawhney, Vice Chairman and MD

Risks & concerns

  • Domestic Market Volatility

    medium

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

    Both acknowledged

  • US Tariff Uncertainties

    medium

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

    Both acknowledged

  • Order Book Quality / Slow Moving Orders

    low

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

    Management acknowledged

Areas of evasion (2)

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

Q&A highlights

2 direct
Working Capital and Debtor Spike Direct
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

Scalability of CO2 Energy Storage Partial
I would imagine by Q3-Q4 of this year, we should be able to give you a little bit better idea as to where it stands. But needless to say, this has come quicker than we thought.

Highlights a major new technology frontier for the company, though management is cautious about projecting long-term revenue impact yet.

Asked by Ravi Swaminathan, Avendus Spark

US Subsidiary Performance and Losses Direct
we had in excess of about ₹20-₹25 crore loss in that subsidiary... which has been an investment into that enterprise.

Quantifies the initial cost of the US expansion strategy and frames it as a necessary investment for future high-margin growth.

Asked by Ravi Swaminathan, Avendus Spark

2 min read 5 chapters

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.

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