Triveni Engineering & Industries Limited

Triveni Engineering & Industries reported a net turnover of ₹1,598 crore for Q1 FY26, marking a 23% increase year-over-year. Despite this revenue growth, the company's PBT stood at ₹2.9 crore and PAT at ₹2.1 crore. The overall cost of funds remained manageable at 7.3%, a slight increase from 7.1% in the previous corresponding period.

The sugar business saw a 14% increase in consolidated dispatches, but segment profit declined by 80% to ₹7.6 crore. This was primarily due to a 69 basis points lower gross sugar recovery compared to the previous season, leading to higher production costs. Sugar realisations also unexpectedly fell below ₹40 per kilo in May and June. The company holds 44.5 lakh quintals of sugar inventory valued at ₹37.4 per kilo as of June 30, 2025. Management anticipates improved sugar prices due to lower government quotas and expects better recovery in the upcoming season.

The alcohol business achieved its highest quarterly production of 6.5 crore litres, with dispatches increasing by 53% year-over-year. However, profitability was impacted by the procurement of FCI rice, which constituted 27% of total alcohol sales, offering lower contribution compared to maize. The company also noted an increase in internal transfer price of C-heavy molasses and fuel expenses. Going forward^⏳, the company aims to reduce reliance on FCI rice and improve cost efficiencies through supply chain and operational improvements, including steam economies.

The Power Transmission business reported a 15% increase in order booking, closing the quarter with a record order book of ₹423 crore, up 38% year-over-year. The overall engineering business order book stood at ₹1,975 crore, a 32% increase. The company expects Q2, Q3, and Q4 to compensate for the limited growth in Q1. The Mysore defence bay, with a pending CapEx of ₹150 crore, is expected to have its manufacturing facility operable within this fiscal year, with defence orders to be executed over the next 24 months.

The water business anticipates good opportunities and funding from state and central governments, driven by the demand-supply gap in water and wastewater treatment. The company is seeing significant opportunities in Q1, including recycle, reuse, ZLD, and EPC on HAM models. Sewage recycling is identified as a new area of business, with targets for foreign projects as well.

The government has approved 27% ethanol blending, with BIS standards expected for 22%, 25%, and 27% blending. The company notes the launch of E85 across 400 petrol pumps and anticipates 1,000 crore litres of ethanol absorption this year, potentially doubling in coming years. The amalgamation with Sir Shadi Lal and the demerger of the Power Transmission business are awaiting regulatory approvals, with an expectation of completion by Q1 of the next fiscal year.