Synopsis: The company is entering a new growth phase driven by a robust power transmission order book, expanding defence manufacturing capabilities, rising export opportunities, and growing ethanol demand. Supported by a large ongoing capacity expansion and increasing contribution from high-margin aftermarket services, management believes multiple growth drivers are strengthening the business’s long-term revenue visibility and profitability prospects.
Introduction
Driven by a strong power transmission order book, expanding defence manufacturing capabilities, rising export opportunities, and growing ethanol demand, the company is entering a new phase of growth. Backed by a significant capacity expansion and increasing contribution from high-margin aftermarket services, management sees multiple catalysts supporting long-term revenue growth, improving profitability, and sustained value creation.
Defence Business Emerging as a Key Opportunity
Defence manufacturing is becoming an increasingly important pillar of Triveni Engineering And Industries Limited long-term growth strategy. During FY26, the company secured a landmark order for an axial compressor test gearbox from a premier defence establishment. Management described the project as one of the first such installations in Asia and among only a handful globally, highlighting the technological complexity involved.
The successful execution of this project is expected to strengthen Triveni’s credentials in defence engineering and open doors to additional opportunities across naval, aerospace, and strategic defence applications.
The company has already commissioned critical machinery and infrastructure at its dedicated defence manufacturing facility. Management expects increasing opportunities from the Indian Navy, defence research organizations, and other government-backed programs as India’s defence indigenization initiatives continue to accelerate.
Given the government’s strong focus on domestic defence manufacturing and import substitution, management believes defence could become a meaningful contributor to revenues over the medium term.
Ethanol Business Positioned for Long-Term Growth
Management remains optimistic about the long-term outlook for the ethanol business. Triveni Engineering And Industries Limited has already secured allocations of approximately 17.18 crore litres under the current ethanol procurement cycle and expects additional allocations in future rounds.
India’s ethanol blending program continues to be a major structural growth driver for the industry. The government has already achieved significant progress toward its blending targets, and management believes future policy initiatives could support blending levels beyond E20 over time.
Additional growth drivers include increasing adoption of flex-fuel vehicles, efforts to reduce dependence on imported crude oil, and continued government support for renewable fuels. Management believes these factors create a favorable long-term environment for ethanol producers and support continued investment in the segment.
Strong Order Book Provides Growth Visibility
The Power Transmission Business (PTB) remains one of Triveni Engineering’s most important growth drivers. Management stated that PTB ended FY26 with an order book of nearly Rs.500 crore, representing growth of approximately 25% compared to the previous year. The order book includes both domestic and export orders across industrial gearboxes, high-speed gearboxes, and engineered transmission solutions.
In addition to the existing order book, the company reported a robust inquiry pipeline across multiple sectors and geographies. Management highlighted that inquiry levels remain significantly higher than historical averages despite temporary delays in customer decision-making during the fourth quarter. The strong order position provides visibility for revenue growth over the next several quarters and supports management’s confidence in the long-term outlook for the business.
Expansion to Support Future Scale
Triveni Engineering And Industries is undertaking one of the largest expansion programs in the history of its power transmission business. The company has approved approximately Rs.340 crore of capital expenditure aimed at significantly enhancing manufacturing capabilities, increasing machining capacity, expanding assembly facilities, and strengthening testing infrastructure.
Most of the expansion is expected to be completed by September 2026. Once fully operational, management estimates that the expanded facilities could support annual revenue potential of around Rs.700 crore or more compared to current levels.
Importantly, this revenue potential excludes any contribution from the company’s dedicated defence manufacturing facility. As a result, future revenues could exceed these estimates if defence opportunities scale as expected.
The expansion is also expected to improve operational efficiencies, reduce lead times, and strengthen the company’s ability to execute larger and more complex projects for global customers.
Exports Becoming a Major Growth Driver
Export markets are expected to play an increasingly important role in PTB’s future growth trajectory. Management highlighted that export inquiries remain exceptionally strong across Europe, North America, Southeast Asia, and other international markets. The company continues to receive inquiries from leading global OEMs and industrial customers seeking reliable gearbox and transmission solutions.
A key strategic advantage is Triveni Engineering And Industries Swiss subsidiary, which provides direct access to international customers, strengthens technical collaboration, and enhances the company’s ability to participate in global projects.
Management expects exports to contribute more than 50% of original equipment sales in the near future. This would represent a significant shift in the business mix and could improve profitability due to higher-value export orders. The company is also benefiting from increasing customer approvals and qualification processes that often lead to long-term supply relationships once completed.
Data Centre and Gas Infrastructure Opportunities
One of the newer opportunities emerging for Triveni Engineering And Industries is the growing demand for power transmission solutions linked to global data center expansion. Management noted that the rapid growth of AI-driven computing infrastructure is increasing demand for reliable backup power systems, including gas turbines and gas engines used in large-scale data centers.
These applications require specialized high-speed gearboxes, creating a sizeable addressable market for companies with advanced engineering capabilities.
Triveni Engineering is actively pursuing approvals and qualification orders from major OEMs operating in these sectors. Management believes that successful approvals could create a long-term growth avenue as global investments in AI infrastructure and data centers continue to accelerate. Beyond data centers, the company also sees opportunities in broader gas infrastructure projects, including industrial power generation and energy transition initiatives.
High-Margin Aftermarket Business Strengthening Profitability
The aftermarket segment continues to be one of the most attractive parts of the power transmission business. Management stated that aftermarket activities contributed approximately 40% of gearbox revenues during FY26, reflecting strong demand for maintenance, refurbishment, upgrades, spare parts, and repair services.
The business benefits from Triveni’s engineering expertise, extensive installed base, and ability to service gearboxes across multiple global brands rather than only its own products. A key competitive advantage is the company’s ability to provide faster turnaround times compared to many international competitors. This capability is particularly valuable for customers seeking to minimize downtime in critical industrial operations.
Because aftermarket services typically generate higher margins and recurring revenues, management expects this segment to remain an important contributor to profitability going forward.
Outlook
Engineering And Industries Limited appears well-positioned to capitalise on multiple long-term growth drivers, including a strong power transmission order book, expanding defence manufacturing opportunities, rising export demand, and continued growth in the ethanol business. Backed by a Rs. 340 crore capacity expansion and a growing share of high-margin aftermarket revenues, the company is strengthening its competitive position and creating a solid foundation for sustainable revenue growth and long-term shareholder value creation.
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