Triveni Turbine Q1 Profit Drops 20%, Shares Fall 8%

Triveni Turbine shares plunged 8% in intraday trading on Tuesday after the company announced a 20% drop in its net profit for the June quarter (Q1FY27).

Key Q1 Performance Indicators

• Net profit for Q1FY27 reached ₹51.1 crore, down from ₹64.4 crore in the previous year.
• Revenue from operations increased to ₹442.7 crore, up from ₹371.3 crore year-on-year.

Despite the notable increase in operational revenue, the decline in net profit marked a significant setback for the company during the first quarter of the fiscal year.

Order Book Dynamics

• Overall order bookings grew by 6.1% year-on-year.
• Aftermarket order bookings surged 53.4% year-on-year to ₹2.24 billion.
• Aftermarket segment now comprises 39% of total order bookings, up from 27% in Q1 FY26.
• Domestic order bookings decreased by 35.4% year-on-year.
• Product order bookings saw an 11.6% decline year-on-year.

The growth in total order bookings was primarily driven by strong performances in exports and the aftermarket segment, which significantly bolstered its contribution to the overall order book.

Margin Contraction Concerns

• Gross margin contracted to 42.6%, falling 190 basis points below the estimated 44.5%.
• EBITDA margin stood at 11.6%, notably lower than the projected 16.5%.
• Absolute EBITDA fell 30% year-on-year to ₹51.3 crore.

Analysts from Motilal Oswal Financial Services noted that while revenue aligned with expectations, both EBITDA and PAT missed their estimates. The company attributed this margin impact to an unfavorable product mix and specific strategic orders, alongside higher-than-anticipated other expenses.

This combination of declining profitability and significant margin pressures contributed to the negative market reaction observed in Triveni Turbine’s share performance.