Triveni Turbine Q3 FY26: Record Revenue Driven by Strong Exports

Triveni Turbine Reports Record Q3 Performance

Triveni Turbine Limited, a leading manufacturer of industrial steam turbines, announced a record-breaking performance for the third quarter of the financial year 2026. The company achieved its highest-ever quarterly revenue and EBITDA, primarily driven by a substantial increase in export sales. For the quarter ending December 31, 2025, revenue from operations surged by 24% year-over-year to reach ₹6.24 billion. This robust top-line growth underscores the company's expanding global footprint and strong execution capabilities. In a reflection of its strong financial position, the board approved an interim dividend of ₹2.25 per equity share, rewarding shareholders for their continued confidence.

A Closer Look at the Financials

The company's operational efficiency was evident in its earnings before interest, taxes, depreciation, and amortization (EBITDA), which grew by 16.9% year-over-year to ₹1.54 billion. However, the EBITDA margin saw a slight compression, settling at 24.6% for the quarter. Profit After Tax (PAT) for Q3 FY26 stood at ₹917 million. The marginal year-over-year decline in PAT was primarily attributed to a one-time, non-recurring exceptional charge of ₹157 million recognized for employee benefit obligations related to the implementation of the new wage code. When adjusted for this exceptional item, the consolidated PAT showed a healthy growth of 12.76% for the quarter, indicating strong underlying profitability.

For the nine-month period ending in December 2025, Triveni Turbine's revenue from operations grew by 2% year-over-year to ₹15 billion, while EBITDA increased by 1.3% to ₹3.82 billion. The sustained performance highlights the company's resilience amidst a dynamic global economic environment.

Export Growth Drives Revenue Surge

A key driver of Triveni Turbine's impressive quarterly performance was its export business. Export sales witnessed a remarkable 54% year-over-year increase, reaching ₹3.85 billion. This surge compensated for a 6% decline in domestic sales, which stood at ₹2.40 billion for the quarter. The strong international demand, particularly from regions like the Middle East, Europe, and Southeast Asia, showcases the company's successful strategy of global market expansion and its growing reputation as a reliable supplier of industrial steam turbines worldwide. The increasing share of exports in the overall revenue mix helps de-risk the company from dependency on a single market.

Order Book and Future Outlook

Triveni Turbine's future revenue visibility remains strong, supported by a healthy outstanding order book. As of December 31, 2025, the consolidated order book stood at ₹19.86 billion, marking a 9% increase year-over-year. However, new order booking for the third quarter was ₹3.91 billion, a 26% decrease compared to the same period last year. This decline was primarily due to a 40% drop in export order booking, which management attributed to global trade uncertainties and delays in contract closures. Despite the dip in quarterly order intake, the management remains optimistic about the company's performance for the remainder of the fiscal year, expecting higher growth in Q3 and Q4, supported by the execution of its substantial order backlog.

Cash Flow Remains a Key Monitorable

While profitability metrics are strong, an analysis of the company's financials reveals a persistent gap between reported profits and cash generated from operations. For the full year FY25, the company's operating cash flow was ₹1.87 billion, which is approximately 0.52 times its reported net profit of ₹3.57 billion. This trend of aggressive profit recognition, where operating cash flow has consistently lagged net profit over the last five years, is an important factor for investors to monitor. Efficient working capital management and improved cash conversion will be crucial for sustaining long-term growth and funding future expansions.

Analyst Recommendations and Market View

The market sentiment for Triveni Turbine remains largely positive. A consensus of eight analysts covering the stock shows a strong inclination towards a 'Buy' rating, with four recommending 'Buy' and three recommending 'Strong Buy'. The company's stock trades at a TTM P/E ratio of 47.31, which is in line with the sector P/E of 47.99, suggesting a fair valuation relative to its peers. The company's leadership in the domestic market, strong financial stability, and high-growth trend are key factors supporting this positive outlook.

Conclusion: Balancing Growth with Challenges

Triveni Turbine has delivered a commendable operational performance in Q3 FY26, setting new records for revenue and EBITDA, largely on the back of its successful export strategy. The robust order book provides a solid foundation for near-term growth. However, investors will be closely watching the moderation in new order inflows and the company's ability to improve its cash flow from operations. Management's confidence in a stronger second half of the fiscal year, combined with its strategic focus on new business areas like geothermal applications, positions Triveni Turbine to navigate current challenges and capitalize on future growth opportunities in the renewable and industrial power sectors.