Detailed Narrative
FY26 Performance and Q4 Momentum
Triveni Turbine delivered a satisfactory performance in FY26, achieving its highest-ever annual turnover of ₹2181 crores, a 9% YoY growth. The second half of the fiscal year, particularly Q4, showed significant momentum, with H2 revenue growing over 125% YoY. Q4 FY26 revenue reached ₹680 crores, marking a 26% YoY increase, driven by strong export performance which grew 46% YoY and contributed 60% to the quarterly revenue.
Margin Dynamics and Exceptional Items
Despite top-line growth, FY26 PAT declined 3% due to an exceptional charge📎 of ₹15.7 crores related to employee benefit obligations. Q4 FY26 EBITDA margins were impacted by a shift in segment mix, including a lower contribution from the higher-margin Aftermarket segment (25% of sales in Q4 vs. 33% prior year) and the execution of a strategic, low-margin NTPC project (PBT margin of ~3%). Additionally, a ₹8.5 crore mark-to-market loss was recognized in Q4 due to rupee volatility.
Robust Order Booking and Expanding Enquiry Pipeline
The company reported strong order booking in Q4 FY26, totaling ₹754 crores, a 19% YoY increase. Export order booking reached a record high of ₹516 crores, growing 174% YoY and contributing 69% to the total Q4 inflow. The closing outstanding order book stood at ₹2054 crores, up 8% YoY, with exports accounting for 51%. The enquiry book nearly doubled over the past year, with significant contributions from the Indian market (7 GW) and a remarkable 1000% increase in North America (3 GW) from a low base.
Strategic Market Entry and New Product Development
Triveni Turbine is actively pursuing growth in new markets and product segments. The US market is a key focus, with enquiry generation driven by data centers (combined cycle applications), biomass, pulp and paper, and geothermal. The company has entered the geothermal products segment and is developing carbon dioxide-based platforms for long-duration energy storage and organic Rankine cycle turbines for low waste heat recovery. These new initiatives are expected to contribute meaningfully in the next 2-4 years.
US Operations and Future Profitability
The US subsidiary, which incurred a loss of approximately ₹8 crores for the full FY26, turned profitable in Q4. Management is optimistic that the US operations will be positive or breakeven in FY27 and profitable from FY28 onwards, driven by increased execution and growing brand recognition. However, the conversion of US enquiries to firm orders is being approached cautiously due to potentially long permitting processes, especially for water-related projects.
Aftermarket Business and Margin Outlook
The Aftermarket segment, encompassing spares, service, and refurbishment, remains a critical growth and profit driver. While its contribution to sales was lower in Q4 FY26, refurbishment, particularly in the African continent, is driving sustainable growth. Management expects overall EBITDA margins to remain stable around a mean of 25% over the long term⏳, with fluctuations influenced by product and geographic mix, and prioritizes top-line growth over aggressive margin expansion.
Innovation and AI Investment
Triveni Turbine is committed to innovation, with 7.5% of its workforce dedicated to R&D and 8% to engineering. This focus supports the development of new products like geothermal turbines and new technologies such as organic Rankine cycle and CO2-based energy storage. The company also plans to invest significantly more in AI to ensure technological readiness for future disruptions, aiming to provide updates on these initiatives in coming quarters.