Synopsis: One of India’s largest ethanol and sugar producers reported a strong turnaround in Q2FY26 with robust profit growth, margin expansion, and improved operational performance, supported by healthy distillery gains and a positive FY26 outlook.
Shares of the leading ethanol and sugar manufacturer advanced after the company posted a sharp rebound in profitability during the September quarter, supported by improved distillery operations and better margins in the engineering business. Investors reacted positively to the turnaround in performance and the management’s confident outlook for FY26.
Triveni Engineering and Industries Ltd opened at Rs. 368.50 against the previous close of Rs. 357.10, touching an intraday high of Rs. 378.20, up 5.9 percent. The company currently commands a market capitalisation of Rs. 7,901.12 crore.
Financial Snapshot – Q2FY26
Revenue rose 6.7 percent sequentially to Rs. 1,706 crore in Q2FY26 from Rs. 1,598 crore in Q1FY26. Operating profit grew 24.5 percent to Rs. 66 crore from Rs. 53 crore, while operating margin improved from 3 percent to 4 percent. Profit before tax surged 866 percent to Rs. 29 crore compared to Rs. 3 crore in the previous quarter. Net profit jumped 950 percent to Rs. 21 crore from Rs. 2 crore. Earnings per share increased from Rs. 0.20 to Rs. 1.18.
On a year-on-year basis, revenue rose 14.4 percent to Rs. 1,706 crore from Rs. 1,491 crore. Operating profit climbed sharply from Rs. 5 crore to Rs. 66 crore, marking a turnaround with margins improving from 0 percent to 4 percent. The company posted a profit before tax of Rs. 29 crore against a loss of Rs. 30 crore in the same quarter last year. Net profit also turned positive at Rs. 21 crore compared to a loss of Rs. 22 crore in Q2FY25, while EPS improved from negative Rs. 0.88 to Rs. 1.18.
Operational Highlights
During Q2FY26, net turnover increased by 14 percent, supported by double-digit growth across both businesses. Profitability improved significantly in H1FY26 and Q2FY26, driven by better performance in the distillery and engineering segments.
The power transmission business continued to deliver a healthy quarter, while sugar profitability remained muted due to off-season impact. On a consolidated basis, gross debt stood at Rs. 753 crore as of September 30, 2025, compared to Rs. 536 crore a year earlier, while the average cost of funds declined to 6.4 percent from 6.7 percent.
Segmental Performance Highlights
The Sugar and Allied Businesses segment recorded an 18 percent rise in turnover during Q2FY26 and 21 percent in H1FY26, aided by a 14 percent increase in sugar dispatches, better realisations, and a 19 percent rise in alcohol sales volume. The results also included income of Rs. 16.81 crore from a power tariff revision effective April 2024. Higher sales volumes and lower maize prices further boosted distillery performance. The company expects a healthy sugarcane crop for the upcoming sugar season 2025-26 and has actively participated in ethanol supply allocations with both public and private OMCs.
In the Engineering Businesses, the Power Transmission Business saw marginal growth in revenue and profitability, maintaining a PBIT margin of 36 percent for H1FY26 despite higher capacity-related costs. While order booking remained subdued during the quarter, enquiry levels improved notably, indicating a pickup in demand ahead. The Water Business reported lower-than-expected order intake, but turnover and segment profits for H1FY26 were higher by 19 percent and 41 percent, respectively, over the previous year.
Comments from Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd
On Cost Management and Efficiency Focus
“The cane prices (SAP) for the SS 2025-26 have been recently announced by the Uttar Pradesh government, and these have increased by Rs. 300 per MT. We would strive and look forward to increased recoveries and other efficiencies to contain our costs. We are making timely technology interventions at our plants to further improve process efficiencies and support our profitability journey.”
On Engineering Business Expansion
“Based on the enquiries being received, we are hopeful of achieving good double-digit growth in the FY 2025-26. We are in the process of setting up a subsidiary in Europe to market and promote the business of PTB.”
On Strategic Restructuring
“Lastly, the proposed scheme of amalgamation with SSEL and the demerger of the Power Transmission business is expected to unlock value and drive operational efficiencies. The proposed scheme has been approved by stock exchange and the process of obtaining approval of NCLT has been initiated.”
About the Company
Triveni Engineering & Industries Ltd is a diversified industrial conglomerate with core operations in sugar, alcohol, power transmission, and water management. It is among India’s largest integrated sugar producers and a leading ethanol manufacturer. The company also plays a key role in delivering power transmission and water treatment solutions across industrial sectors.
-Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
