Synopsis:
Triveni Engineering reported weak Q1FY26 results with a sharp decline in profit, despite revenue growth, putting pressure on the stock.
A Small-cap Ethanol stock is in the spotlight today after the announcement of financial results for Q1FY26. Read the full article to know about their performance. With a market capitalization of Rs. 7,566 crore, the shares of Triveni Engineering and Industries Ltd were trading at Rs. 346, down by 6 percent from its previous closing price of Rs. 367.50.
Q1FY26 Results
Triveni Engineering and Industries Ltd reported Rs. 1,598.22 crore in revenue for the first quarter of FY26, a moderate increase of 22.88 percent over the Rs. 1,300.68 crore for the same period in FY25. However, from Rs. 1,629.29 crore in Q4 FY25, revenue decreased by 1.91 percent.
The company’s operating profit stood at Rs. 53.40 crore in Q1FY26, decreased by 82.68 percent compared to Rs. 308.12 crore in Q4FY25, whereas decreased by 38.08 percent compared to Rs. 86.24 crore in Q1FY25.
The consolidated net profit for the first quarter of FY26 was Rs. 2.10 crore, which saw a sharp decline of 98.88 percent higher than the Rs. 187.12 crore reported in the previous quarter and 93.75 percent lower year over year than the Rs. 30.99 crore in Q1 FY25.
Profit decline was also reflected in earnings per share (EPS), which decreased to approximately Rs. 0.20 in Q1 FY26 from Rs. 8.36 in Q4 FY25 and Rs. 1.43 in Q1 FY25.
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Management View
Dhruv M. Sawhney, chairman of Triveni Engineering, stated that lower distillery margins from FCI-rice and off-season sugar prices were the main causes of the company’s poor Q1 performance. Citing robust sugarcane crops, rising input prices, and an anticipated profitability recovery in the near future, he maintains his cautious optimism.
The engineering segment had a robust order book of Rs. 423 crore, but order execution was slow. Although it might get better, the Water segment remained weak. It is anticipated that the proposed demerger of the Power Transmission company and merger with SSEL will increase efficiency and unlock value.
About the company
Triveni Engineering is a multifaceted industrial conglomerate that specializes in water treatment, ethanol production, sugar production, and power transmission. With eight sugar mills and six distilleries spread throughout Uttar Pradesh, it is one of the biggest integrated producers of sugar and ethanol in India.
The company serves significant FMCG and pharmaceutical clients and also manufactures IMIL and IMFL. It is an essential component of defence gear systems and high-speed gearboxes in power transmission.
Complete water and wastewater management solutions are offered by TEIL’s water division. Its FMCG division, Triveni Brands, focuses on innovative sugar products under brands like Shagun Sugar and Triveni Sugar.
Written By Akshay Sanghavi
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