Triveni Engineering & Industries: Navigating Seasonal Shifts and Strategic Growth in H1 FY26

Triveni Engineering & Industries Ltd. (TEIL), a diversified industrial conglomerate with strong footholds in sugar, alcohol, power transmission, and water, has announced its consolidated financial results for the second quarter and half-year ended September 30, 2025 (Q2 & H1 FY26). Despite navigating seasonal challenges in its sugar business, the company demonstrated robust growth in profitability, primarily fueled by strong performance in its Distillery operations and Engineering segments. The net turnover for H1 FY26 increased by a commendable 18% to ₹3,304.4 crore, with Q2 alone witnessing a 14% rise. Profit Before Tax (PBT) for H1 FY26 surged by an impressive 178% to ₹32 crore, while Profit After Tax (PAT) grew by 174% to ₹23.5 crore, showcasing the effectiveness of strategic initiatives and operational efficiencies.

Segmental Performance: A Closer Look

The Sugar and Allied Businesses, while facing the inherent seasonality of the industry (Q2 and a substantial part of H1 being off-season with no manufacturing activity), still contributed significantly to the top line. Net turnover for this segment increased by 18% in Q2 and 21% in H1 FY26, driven by a 14% increase in consolidated sugar dispatches and improved sugar realizations. The sugar inventory as of September 30, 2025, stood at 16.9 lakh quintals, valued at ₹37.4/kg. An notable income of ₹16.81 crore from an upward revision of power tariff also bolstered results. However, the increase in the cost of sugar sold could not be fully offset by higher sugar realization prices and sales volumes.

The Alcohol (Distillery) Business emerged as a key profitability driver. The segment witnessed a significant improvement in profitability, primarily due to a favorable correction in input prices, particularly maize, and a strong focus on cost optimization. The consolidated PBIT for the Alcohol business soared by 276.7% in H1 FY26 to ₹50.8 crore. Production volumes for H1 FY26 increased by 32.6% to 1,24,510 KL. Despite this, Q2 sales volume saw a 6% year-on-year decline, impacted by a supply disruption due to an export fee notification, which led to a higher closing stock of alcohol. The average realization price in Q2 FY26 was also marginally lower due to an increased share of ethanol produced from FCI Rice.

Financial Summary Table (Consolidated H1 FY26)

Note: Data for H1 FY26 consolidated results ended September 30, 2025.

The Engineering Businesses, comprising Power Transmission and Water, also demonstrated positive momentum. The Power Transmission Business (PTB) reported a marginal increase in revenue and profitability. Despite subdued order booking during the quarter and half-year, management expressed optimism for double-digit growth in order booking, turnover, and profitability, citing improved enquiry levels. PBIT margins for PTB improved by over 400bps, driven by a favorable product mix and strong cost optimization. The segment also successfully registered nine new OEM customers in H1 FY26. The Water Business saw its revenue increase by 19.3% in H1 FY26. While order booking was not as per expectations, the outstanding order book remains robust at ₹1,520 crore, with ₹1,092 crore attributed to long-duration Operations & Maintenance (O&M) contracts. The company anticipates increased traction in this segment, particularly with emerging opportunities in recycle, reuse, and Zero Liquid Discharge (ZLD) projects, as well as international tenders.

Strategic Initiatives and Outlook

Triveni is actively pursuing a corporate structure simplification through the amalgamation of Sir Shadi Lal Enterprises Limited (SSEL) into TEIL and the demerger of its Power Transmission Business into Triveni Power Transmission Limited (TPTL). This strategic move, which has received stock exchange approvals and is awaiting NCLT sanction, aims to unlock value, drive operational efficiencies, and allow for independent value discovery for each business. The company is also focused on expanding its PTB capacity, targeting ₹700 crore by September 2026, and inaugurating a new defense facility by December 2025. Digital transformation initiatives, including ERP migration and the creation of a digital factory and twins for PTB, are underway to enhance operational control and customer stickiness.

In the Sugar business, the overall sugarcane crop position for the upcoming Sugar Season (SS) 2025-26 appears healthy. However, the recent increase in Sugarcane State Advised Price (SAP) by the UP government poses profitability pressure, necessitating a review of the Sugar Minimum Support Price (MSP). For Alcohol, OMCs have secured substantial ethanol volumes for ESY 2025-26, and the company expects maize procurement prices to remain soft, supporting profitability. The Water business continues to have a positive long-term outlook, with significant opportunities in new project models and international tenders.

Overall, Triveni Engineering & Industries demonstrated disciplined execution in H1 FY26, leveraging its strengths in distillery operations and engineering to offset seasonal weakness in sugar. The ongoing strategic restructuring and capacity expansions position the company for sustained growth and value creation, reinforcing management's focus on operational excellence and shareholder returns.