Triveni Turbine Navigates Global Headwinds with Record Order Book and Strategic Growth

Triveni Turbine Limited, a prominent player in industrial steam turbines, has released its financial results for the second quarter and half year ended September 30, 2025 (Q2/H1 FY26). The company reported a mixed performance, showcasing resilience in order bookings amidst a slight dip in H1 revenue and profit. Despite global trade uncertainties, Triveni Turbine is strategically positioning itself for future growth through robust domestic demand, innovative product introductions, and a strengthened aftermarket presence.

For Q2 FY26, Triveni Turbine reported a revenue from operations of ₹506.2 crore, a marginal increase of 1% year-on-year. EBITDA stood at ₹133 crore, up 1.5% YoY, with EBITDA margins improving to 26.3%. Profit After Tax (PAT) for the quarter was ₹91.4 crore, showing a slight increase of 0.4% YoY. However, on a half-yearly basis (H1 FY26), revenue from operations declined by 9% to ₹877.5 crore, and PAT decreased by 9.1% to ₹155.8 crore compared to H1 FY25. Management attributed this H1 decline to deferred Q1 revenue due to regional uncertainties and a low base in the previous year's domestic order booking.

Order Book Strength and Segmental Performance

The standout highlight for Triveni Turbine is its exceptional order book performance. The company achieved a record order booking of ₹652.3 crore in Q2 FY26, marking a significant 14% year-on-year growth. This surge was primarily driven by a robust domestic market, where order booking grew by an impressive 52% YoY to ₹407 crore, contributing 62% to the quarter's total order intake. As a result, the consolidated outstanding order book reached an all-time high of ₹2220 crore as of September 30, 2025, a substantial 24% increase from the previous year.

Segment-wise, the aftermarket business continues to be a strong pillar of growth. Aftermarket turnover for Q2 FY26 was a record ₹177.6 crore, an 8% increase YoY, and its contribution to the total turnover enhanced to 35% (compared to 33% in Q2 FY25). The product segment's turnover for the quarter was ₹328.6 crore, a marginal decline of 2% YoY. However, product order booking increased by 14% YoY to ₹454 crore, driven by strong momentum in domestic markets such as steel, sugar, distillery, and cement, as well as utility power drive turbines.

Internationally, export order booking declined by 19% YoY to ₹246 crore, impacted by global trade uncertainties and tariff issues, particularly in the U.S. Despite this, management noted that enquiry pipelines remain robust and globally diversified, providing good visibility for the near term.

Strategic Initiatives and Outlook

Triveni Turbine is actively pursuing strategic initiatives to consolidate its market position and drive future growth. The company recently acquired the remaining 30% equity stake in TSE Engineering Pty. Ltd. in South Africa for ₹5.6 crore (ZAR 10.97 million). This move aims to consolidate ownership, strengthen operational control, simplify the group structure, and realize operational synergies. The acquisition aligns with the company's strategic objective to enhance decision-making agility and align with long-term business goals.

Innovation remains a core focus, with new product introductions gaining traction. The company has successfully established a demo unit for its CO2-based heat pump at its Peenya facility, touted as the world's first for its temperature range. Commercial orders have also been secured for Mechanical Vapor Recompression (MVR) compressors, with deliveries expected in Q1 of the next financial year. These new technologies are expanding Triveni's horizons beyond traditional industrial steam turbines and are building strong enquiry pipelines.

Furthermore, Triveni Turbine is undertaking an expansion at its Sompura manufacturing facility, which is expected to be capitalized by the end of FY26 and ready by June-July. This expansion will add further capability, including a new test bed for testing turbines and rotating equipment, ensuring the company is not capacity-constrained for future demand.

Management maintains a confident outlook for FY26, anticipating that growth will be back-ended, with Q3 and Q4 expected to show higher revenue growth rates. They project a domestic market growth rate of 20-25% annually for the next couple of years. The company's strong cash position of ₹1005 crore as of June 30, 2025, provides ample headroom for investing in growth initiatives.

Conclusion: Resilient Performance and Strategic Vision

Triveni Turbine Limited's Q2/H1 FY26 results reflect a company navigating a complex global environment with strategic clarity and operational resilience. While H1 saw some revenue and PAT moderation, the record order booking, robust domestic growth, and strong aftermarket performance underscore the company's market leadership. The focus on innovation, strategic acquisitions, and capacity expansion positions Triveni Turbine well to capitalize on the increasing demand for industrial heat and power solutions, particularly in the thermal renewable fuels segment. The company's disciplined execution and forward-looking approach instill confidence in its ability to sustain growth and profitability in the coming years.