Triveni Engineering Q4 Revenue Up 10.6%, Declares Dividend

Revenue from operations (net of excise): ₹6,291 crore (10.6% growth YoY)
PBT: ₹378 crore
EBITDA: ₹624 crore (16.9% margin, up from ₹533 crore in FY25)
Net Profit: ₹268.7 crore (12.8% growth YoY)
Exceptional charge: ₹14 crore (retroactive impact of new labour codes on employee benefit provisions)
Consolidated debt: ₹2,148 crore as of March 31, 2026 (vs. ₹1,969 crore as of March 31, 2025)
Long-term debt: ₹472 crore as of March 31, 2026 (vs. ₹506 crore as of March 31, 2025)
Final dividend recommended: ₹1.25 per equity share (125%)

Revenue growth: ~13% YoY
PBIT: ₹272 crore (marginal growth)
Sugarcane crush: 8.25 million tonnes (8.8% decline YoY)
Gross recovery: 11.06% (up 26 basis points)
Net sugar production: 913,000 tonnes (similar to previous year despite lower crush)
Domestic sales volume: 9.79 lakh tonnes (10.4% growth)
Sugar realizations: ₹40,680 per metric tonne
Inventory as of March 31, 2026: ~60 lakh quintals valued at ₹38.1 per kg
Current ex-mill prices: Refined sugar ~₹42.20/kg; Sulphitation sugar ~₹0.75-1.00/kg lower
Additional income: ₹31 crore from upward revision of export power tariffs (UPERC regulations effective April 1, 2024)

Revenue (net of excise): ₹1,550 crore (record high)
Outstanding operational turnaround with highest ever production and sales volumes
Grain-based feedstock constituted 56% of total ethanol sales
Average realization: ₹61 per litre (slightly lower due to higher mix of FCI rice-based ethanol)
Secured allocation: 17.18 crore litres under cycle one of OMCs and private tender programs
IMIL branded business outperformed industry growth metrics in Uttar Pradesh

Order booking: 25% higher than previous year
Closing order book: Nearly ₹500 crore
Q4 impacted by global and domestic uncertainty, geopolitical inactivity in West Asia
Landmark order: Axial compressor test gearbox from premier defence establishment (first of its kind in Asia)
Defence manufacturing facility commissioned in Q4 with lathe machines, deep hole drilling machines, floor boring machines
Testing facility to be installed over next couple of quarters
Aftermarket business represented ~40% of overall gears revenue in FY26

Consolidated revenues: ₹270 crore (15% growth)
Orders received during year: ₹165 crore
Closing order book: ~₹1,500 crore (₹1,077 crore from longer duration O&M maintenance contracts)
Successful completion and handover of Exim Bank-funded Maldives Water and Sanitation infrastructure project across six islands

Total board-approved CapEx: ₹340 crore across three tranches for gearbox business
CapEx incurred up to March 31, 2026: ₹231 crore (₹78 crore for defence facility)
Remaining CapEx: ₹109 crore to be incurred in Q1 and Q2 FY27
Expected output from gearbox CapEx: ~₹700 crore based on product mix (excluding defence facility output)
All CapEx anticipated to be complete by September 2026

Domestic sugar production anticipated at 27.8 million metric tonnes for season
Maharashtra and Karnataka registering 23% and 16% increases respectively
Uttar Pradesh witnessing 3.4% decline (Western UP most affected)
Consumption estimate: 27.5 million metric tonnes
Exports: ~0.5 million metric tonnes
Closing stock anticipated at 4.6-4.8 million metric tonnes (lower than opening stock of 5 million metric tonnes)
El Nino concerns may impact monsoon 2026, but Western UP relatively insulated due to Himalayan water sources
Early Diwali anticipated, suggesting sugar season start in second half of October 2026

Government bodies formulating policies for "Beyond E20" applications
Draft notification amendments for CMVR 1989 propose higher ethanol blends under emission norms
ATF norms redefined to include synthetic hydrocarbons enabling sustainable aviation fuel integration
Expectation of government review of ethanol pricing from sugarcane and grain-based feedstocks

Strategic push toward independent listing of Triveni Power Transmission Limited
Export market remains major growth driver
Swiss subsidiary providing growth engine
Qualification orders for pumps and compressors to increase presence in oil and gas sector
Compressor test rig emerging as promising growth segment in Europe and Middle East
Target of more than 50% exports for original equipment in near future

Market remains buoyant with stricter environmental norms driving demand for water recycle and reuse infrastructure

Composite scheme of arrangement effective from May 19, 2026 (NCLT approved)
Appointed date for scheme: April 1, 2025
Appointed date for demerger: April 1, 2026
Record date for issuance of shares to Sir Shadi Lal shareholders: June 3, 2026
Record date for Triveni Engineering shareholders: To be set within next 4 weeks (subject to stock exchange approvals)
Expected listing of Triveni Power Transmission Limited: By end-August 2026
Q1 FY27 results for both TEIL and TPTL to be published with earnings conference calls

ICRA reaffirmed long-term credit rating at AA+ Stable (lifted from previous under watch status)

Defence business: Orders range from double-digit to triple-digit crore values with delivery timelines of 1-4 years; focusing on Indian Navy, Army applications; technology partnerships with global firms
Power Transmission: Competition with RENK noted but value proposition remains compelling; focusing on API compliance for oil and gas sector; aftermarket delivery time is competitive advantage (2-3 months vs. 12 months for global firms)
Distillery: Maize costs significantly lower than last year (₹0.75-0.80 lower); conversion costs decreased significantly with by-product credits
Working capital: Receivables at ~₹500 crore (₹125-150 crore from water business); short-term borrowings higher due to increased cane price but expected to decrease rapidly from April onward
Crushing outlook: Planting concluded by first half of May; official survey for Uttar Pradesh government in June-July; monsoon performance critical for grand growth period