Detailed Narrative
Strong FY26 Performance Driven by Sugar and Distillery
Triveni Engineering & Industries reported a robust FY26, with revenues from operations growing 10.6% to ₹6,291 crore. Net profit for the year increased by 12.8% to ₹268.7 crore. The company's EBITDA margins expanded to 16.9%, totaling ₹624 crore, up from ₹533 crore in the previous fiscal year, reflecting improved operational efficiencies and stronger sales volumes in its core segments.
Distillery Segment Achieves Significant Turnaround
The distillery segment delivered an outstanding operational turnaround in FY26, posting its highest-ever production and sales volume. Annual revenue net of excise reached ₹1,550 crore. This performance was driven by better feedstock availability, lower maize procurement prices, and sharp cost optimization, with conversion costs significantly reduced. Despite a slightly lower average realization of ₹61 per litre due to a higher mix of FCI rice allocated ethanol, the volume growth compensated for this.
Power Transmission Business Shows Robust Order Momentum and Strategic CapEx
The Power Transmission Business recorded a 25% increase in order booking compared to the previous year, concluding FY26 with a strong order book of just under ₹500 crore. The company has approved a total CapEx of ₹340 crore for this business, with ₹231 crore already incurred by March 31, 2026, including ₹78 crore for the defence facility. The remaining ₹109 crore will be incurred in Q1 and Q2 FY27, with 40% of this balance dedicated to defence projects, aiming for an output of approximately ₹700 crore.
Sugar Business Navigates Agricultural Challenges with Strong Realizations
Despite ambient agricultural challenges, the sugar business maintained stable baseline profitability. Sugarcane crush for the 2025-26 season was 8.25 million tonnes, an 8.8% decrease, primarily due to agro-climatic factors and diversion to jaggery. However, the company's gross recovery improved by 26 basis points to 11.06%, and domestic sales volume grew 10.4% to 9.79 lakh tonnes, with strong realizations averaging ₹40,680 per metric tonne.
Demerger of Power Transmission Business Progresses Towards Listing
The composite scheme of arrangement for the demerger of Triveni Power Transmissions Limited (TPTL) became effective on May 19, 2026, following NCLT approval. The company anticipates the listing of TPTL by the end of August 2026. This strategic move is expected to unlock value, with management projecting that exports will constitute more than half of original equipment sales for TPTL in the very near future, driven by its technological prowess and global market reach.
Water Business Sustains Growth and Healthy Order Book
The water business continued its growth trajectory, with revenues increasing by 15% to ₹270 crore. The segment's closing order book remained strong at just over ₹1,500 crore, with over ₹1,077 crore comprising longer-duration O&M maintenance contracts. The order inflow for the water business during FY26 was ₹165 crore, and receivables for this segment are estimated at ₹125-150 crore out of a total of ₹500 crore.