Company Update : Triveni Turbine Ltd by Motilal Oswal Financial Services Ltd
In-line revenue, margin resilience led to PAT beat
* Triveni Turbine results were above our estimates on profitability.
* Revenue inched up 1% YoY to INR5.1b, in line with our estimate. Domestic sales declined by 20% to INR2.2b, while export sales increased by 27% to INR2.8b. Export as % of sales increased to 56% in 2QFY26 from 44% in 2QFY25.
* Gross margin at 50.7% expanded by 140bp YoY. This led to EBITDA margin expansion of 40bp YoY/280bp QoQ to 22.6%, higher than our expectation of 20.5%.
* Absolute EBITDA increased 3% YoY/56% QoQ to INR1.1b, a 12% beat to our estimate.
* PAT was broadly flat YoY at INR914m (8% above our estimate).
* Order inflows increased 14% YoY to INR6.5b, aided by strong domestic order inflows.
* Export order inflows declined 19% YoY to INR2.5b due to global trade uncertainties. However, enquiry pipelines remain strong and globally diversified, providing good visibility for the near term. Domestic order inflows, on the other hand, jumped 52% YoY to INR4.1b, contributing 62% of total order bookings in 2Q. In terms of enquiry pipeline in 2Q, the international product enquiry pipeline showed improvement by growing at 43% and the domestic product enquiry growth was also strong at ~86%.
* On the product side, order inflows increased 14% YoY to INR4.5b, whereas aftermarket segment’s order inflows rose 15% to INR2.0b.
* Total consolidated order book stood at INR22.2b as of Sep’25 (+24% YoY), of which domestic order book stood at INR11.0b (+55% YoY) and export order book stood at INR11.2b (+3% YoY), contributing to 51% of the closing order book.
* For 1HFY26, revenue/EBITDA/PAT declined 9%/9%/9% YoY to INR8.8b/INR1.9b/INR1.6b, whereas EBITDA margin contracted slightly by 10bp YoY to 21.4%.
* For 1HFY26, OCF/FCF declined 81%/99% to INR387m/INR25m, mainly due to an increase in working capital.
* During the quarter, Triveni Turbines DMCC (TTDMCC), a wholly owned subsidiary of the company, acquired the remaining 30% equity interest in TSE Engineering Pty. Ltd (TSE) for a cash consideration of INR56m
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