Trident profit rises 85% despite lower September revenue

Trident Limited reported standalone net profit of Rs 170.63 crore for the quarter ended September 30, 2026, up 84.6% from Rs 92.41 crore a year earlier, although revenue from operations fell 3.8% to Rs 1,716.99 crore. A Rs 173.90 crore year-on-year swing in inventory movement contributed to a 10.2% reduction in total expenses.

Why did Trident's September-quarter profit rise despite lower revenue?

Trident's profit rose because total expenses declined more sharply than income in the September 2026 quarter. Total income decreased 3.8% year on year to Rs 1,734.74 crore, including other income of Rs 17.75 crore, while total expenses declined by Rs 170.69 crore to Rs 1,507.52 crore. Profit before tax consequently increased 81.5% to Rs 227.22 crore from Rs 125.25 crore.

The largest expense change was inventory movement. Changes in inventories of finished goods, waste, work-in-progress and stock-in-trade were a negative expense of Rs 126.09 crore in the quarter, compared with an expense of Rs 47.81 crore in the September 2025 quarter. This Rs 173.90 crore swing offset a Rs 24.52 crore increase in raw-material consumption and a Rs 7.68 crore increase in finance costs.

Tax expense increased to Rs 56.59 crore from Rs 32.84 crore, reflecting the higher pre-tax profit, but net profit still increased. Basic and diluted earnings per share, or EPS, were Rs 0.33 for the September 2026 quarter, compared with Rs 0.18 in the corresponding quarter a year earlier. The filing states that EPS is not annualised.

Which Trident segments changed most in the September quarter?

Trident's yarn segment delivered the largest increase in both reported segment revenue and segment result in the September 2026 quarter. Yarn revenue rose 10.3% year on year to Rs 1,018.96 crore, while its segment result climbed to Rs 191.19 crore from Rs 47.24 crore. Segment results are measured before finance costs, exceptional items, tax and unallocable expenditure net of unallocable income.

Towel revenue fell 21.2% to Rs 568.98 crore, the largest decline among the four reported operating segments, and its segment result fell 56.3% to Rs 34.04 crore. Paper and chemicals revenue rose 16.6% to Rs 287.90 crore, although its segment result decreased 20.4% to Rs 34.27 crore. Bedsheets revenue increased 19.0% to Rs 310.64 crore and its segment result rose to Rs 36.64 crore from Rs 19.01 crore a year earlier.

These segment revenue figures include inter-segment sales. Total segment revenue increased to Rs 2,186.48 crore from Rs 2,153.21 crore, but inter-segment revenue increased to Rs 469.49 crore from Rs 368.04 crore. After eliminating internal sales, Trident's revenue from operations was Rs 1,716.99 crore, below Rs 1,785.17 crore in the prior-year quarter.

How did Trident perform in the six months ended September 2026?

Trident reported standalone net profit of Rs 323.56 crore for the six months ended September 30, 2026, up 39.6% from Rs 231.77 crore in the corresponding six months ended September 30, 2025. Revenue from operations rose 0.4% to Rs 3,498.67 crore, while profit before tax increased 39.9% to Rs 436.42 crore.

First-half expense trends also showed the effect of inventory movement. Total expenses fell to Rs 3,095.46 crore from Rs 3,211.42 crore, while inventory movement was a negative expense of Rs 146.52 crore, compared with an expense of Rs 32.08 crore a year earlier. Raw-material consumption rose to Rs 1,840.34 crore from Rs 1,754.01 crore, and finance costs rose to Rs 62.17 crore from Rs 55.84 crore.

The half-year outcome also differed from the immediately preceding June 2026 quarter. September-quarter revenue was Rs 1,716.99 crore, below Rs 1,781.68 crore in June, while net profit increased from Rs 152.93 crore to Rs 170.63 crore. September-quarter total comprehensive income was Rs 167.01 crore, below the June-quarter Rs 177.70 crore because other comprehensive income shifted to a loss of Rs 3.62 crore from income of Rs 24.77 crore.

What do Trident's cash flows and balance-sheet figures show?

Trident generated net operating cash flow of Rs 800.08 crore in the six months ended September 30, 2026, compared with Rs 643.46 crore a year earlier. Cash generated from operations was Rs 880.64 crore and direct taxes paid were Rs 80.56 crore. The filing records a Rs 126.96 crore release from inventories during the half year, versus a Rs 279.94 crore release in the corresponding prior period.

Investing cash outflow was Rs 75.52 crore, including Rs 99.83 crore spent on property, plant, equipment, capital work in progress and intangible assets. Financing cash outflow was Rs 725.71 crore, including a Rs 331.22 crore reduction in working-capital borrowings, Rs 254.78 crore of equity dividends paid and Rs 69.78 crore of non-current borrowing repayments. Cash and cash equivalents ended September 30, 2026 at Rs 19.81 crore, versus Rs 22.69 crore a year earlier.

Standalone total assets stood at Rs 7,299.73 crore at September 30, 2026, compared with Rs 7,189.26 crore a year earlier and Rs 7,499.87 crore at March 31, 2026. Total segment liabilities, excluding borrowings and interest accrued on borrowings, were Rs 1,085.11 crore, compared with Rs 1,033.19 crore a year earlier. Yarn assets were Rs 2,803.17 crore, the largest reported segment asset base.

Conclusion

Trident's September-quarter standalone earnings improvement reflected expenses falling faster than revenue, particularly the shift from a Rs 47.81 crore inventory-related expense in September 2025 to a Rs 126.09 crore negative expense in September 2026. Yarn supplied the largest segment-result increase, while towel revenue and segment result both declined. Across the six months ended September 2026, net profit rose 39.6% despite revenue growth of 0.4%.

The filing does not disclose a financial target, expansion plan or scheduled event. Subsequent results can show whether the September-quarter inventory movement continues, whether yarn maintains its Rs 191.19 crore segment result, and how the Rs 99.83 crore first-half capital expenditure and Rs 331.22 crore reduction in working-capital borrowings develop.