Triveni Turbine: Record order book but margin pressure may play spoilsport

Shares of Triveni Turbine Ltd are set for a 63% upside post Q2 earnings, according to global brokerage UBS. Triveni Turbine clocked record closing order book of Rs 2453 crore, 10.5% higher on a year on year (YoY) basis against Rs 2219.7 crore.

The firm said it logged highest ever quarterly order booking of Rs 764 crore during the quarter, a rise of 17.2% YoY. Export order booking rose 49.8% YoY, contributing 48.1% of order booking. Strong order inflows led by exports and improving domestic demand supported medium-term execution visibility for Triveni Turbine.

However, according to UBS, weak margins may weigh on the stock in the near term. EBITDA margins fell to 17.5% in Q2 against 26.3% in Q2FY26.

Profit before tax (PBT) slipped 39.2% YoY to Rs 75.7 crore, with PBT margin of 15.4% in the last quarter against 24.6% in Q2FY26. Profit after tax came at Rs 53.3 crore, down by 41.7% YoY, with margin of 10.9% against 18.1% in Q2 FY26.

The brokerage said management expects strong H2 on better execution/mix.

In the current session, Triveni Turbine stock was trading on a flat note at Rs 509.75 against the previous close of Rs 514.40. Market cap of the firm slipped to Rs 16,205 crore.

Total 1.83 lakh shares of the firm changed hands amounting to a turnover of Rs 9.28 crore on Thursday. The stock slipped to a 52-week low of Rs 428.50 on March 23, 2026 and rose to a 52-week high of Rs 
787.85 on May 29, 2026.

Q2 earnings 

Triveni Turbine Ltd, a manufacturer of industrial steam turbines, reported a 41.6% year-on-year (YoY) decline in consolidated net profit to Rs 53.3 crore for the second quarter of FY27, compared with Rs 91.2 crore in the corresponding quarter of the previous financial year.

Revenue from operations declined 3% to Rs 491 crore in Q2FY27 from Rs 506.2 crore in the year-ago period.

The company's domestic business witnessed strong growth, with sales rising 51.8% YoY to Rs 340 crore. However, export sales declined 46.6% to Rs 151 crore. Consequently, exports accounted for 30.7% of total revenue during the quarter, compared with 55.7% in Q2FY26, reflecting a higher contribution from the domestic market.

On the revenue front, product sales increased 4.4% year-on-year to Rs 343 crore. In contrast, aftermarket revenue declined 16.7% to Rs 148 crore, accounting for 30.1% of the company's total revenue. EBITDA fell 35.5% YoY to Rs 85.8 crore with margin of 17.5% vs 26.3% in Q2 FY26.

EBITDA margin contracted sharply to 13% in Q2FY27 from 23% in Q2FY26, indicating significant pressure on operating profitability.

Dhruv M. Sawhney, Chairman & Managing Director, Triveni Turbine Limited said, "During the first half of FY27, we delivered revenue growth of 6.4% Y-o-Y, with Revenue from Operations at Rs 934 crore. Revenue for Q2 FY27 stood at Rs 491 crore, 3.0% lower Y-o-Y, as strong domestic growth of 51.8% was offset by lower export revenue during the quarter. As expected, the margins for the quarter came under pressure, as current deliveries largely reflect orders secured around a year ago, which carried a less favourable product mix, along with the execution of a strategic order and higher input and logistics cost. Going forward, we believe these pressures will ease and should not weigh on profitability in the coming quarters."