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We revise our FY24/25/26E EPS estimates by +1.5%/2.8%/6.6% and upgrade the rating to ‘Buy’ from Accumulate with a revised TP of Rs532 (Rs450 earlier) owing to a robust business outlook. Triveni Turbine (TRIV) reported revenue growth of 32.5% YoY, driven by strong exports & product sales. EBITDA margin continued to remain stable at 19.4%. Domestic enquiry pipeline is robust (+57% YoY) owing to strong demand in bio-mass, renewable energy, waste heat recovery across industries. International demand is coming from Americas, North Africa, Europe, and South East Asia, in areas such as process co-generation, biomass, and oil & gas. There is strong traction in aftermarket segment, with TRIV expanding its international service offerings to drive strong growth. With focus on high growth and capturing higher value orders, it will continue to add skilled manpower and increase R&D spending (from ~1% to ~3% of sales) for quality enhancement & product development.

We believe TRIV’s prospects continue to remain strong due to 1) healthy enquiry pipeline (up 14% YoY in 9MFY24) across markets, 2) growing share of higher margin exports & aftermarket sales, 3) strong traction in both industrial & API drive turbines, and 4) robust order book with strong inflows across businesses. The stock is trading at a P/E of 36.0x/28.0x FY25/26E EPS. We roll forward to Dec-25 and value the stock at a P/E of 35x FY26E (35x SepFY25E earlier). Upgrade to ‘Buy’.

Robust product sales drive overall growth: Consolidated revenue grew 32.5% YoY to Rs4.3bn (PLe: Rs4.1bn), driven by strong growth in Product sales (up 43.6% YoY to Rs2.9bn), while Aftermarket sales rose 15.0% YoY to Rs1.5bn. Domestic/Export mix remained steady at 56%/44% (vs 57%/43% in Q3FY23). EBITDA rose 32.7% YoY to Rs837mn (PLe: Rs808mn). EBITDA margin was flat at 19.4% (PLe: 19.5%) as the gross margin expansion was offset by a jump in other expenses (up 54.3% YoY to Rs955mn). PAT grew 29.6% YoY to Rs682mn (PLe: Rs661mn) aided by higher other income (up 44.5% YoY to Rs172mn).

Strong order book driven by robust export orders: Q3FY24 order inflow came in at Rs5.3bn (+26.4% YoY) with export orders jumping 67.0% YoY to Rs3.2bn. Product/Aftermarket order inflows grew 23.4%/34.3% YoY to Rs3.8bn/Rs1.5bn driven by API exports and robust domestic demand. Order book stands at Rs15.8bn (1.0x TTM revenue) with a domestic/export mix of 52%/48% (vs 56%/44% in Q3FY23) and a Product/Aftermarket mix of 83%/17% (vs 84%/16% in Q3FY23). Enquiry pipeline in 9MFY24 grew ~14% YoY, with domestic enquiry book jumping ~57% YoY owing to strong traction in cement, steel, process co-generation, biomass, distilleries and oil & gas.

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