Triveni Engineering & Industries reported a marked improvement in its first-half performance, with higher revenue, wider operating margins and a return to profit before tax. The company said consolidated revenue from operations increased 5% year over year to INR 3,311 crore in H1 fiscal 2027. Revenue in the second quarter rose 8% to INR 1,731 crore.
Operating margin for the half year expanded to 6.9%, from 3.1% in the same period a year earlier. Profit before tax reached INR 131 crore, compared with a loss of INR 25 crore. Finance costs fell 20%, while net debt stood at INR 157 crore on September 30, down from INR 702 crore a year earlier.
Management attributed the improvement to stronger sugar realizations, a better product mix and improved byproduct economics in the alcohol business, alongside cost discipline and lower working-capital use. The results reflect the continuing sugar, alcohol and water businesses after the power transmission business was demerged effective April 1, 2026. Consolidated results also include the company’s share of profit from its associate, Triveni Power Transmission Limited.
Sugar was the main contributor to the turnaround. First-half revenue from the segment increased 5% to INR 2,497 crore, and segment profit before interest and tax rose to INR 113 crore from a loss of INR 5 crore a year earlier. Average sugar realizations increased 9% to INR 4,428 per metric ton, while dispatches were broadly stable at 5.33 lakh metric tons.
The alcohol business also improved, with first-half segment profit before interest and tax up 44% year over year. Production fell 13% to 1,085 lakh liters, which the company linked to fewer operating days, storage constraints and a planned shift away from B-heavy molasses ethanol. Management said stronger distillers’ dried grains with solubles (DDGS) realizations and a higher share of grain-based ethanol supported profitability.
The water business had a weaker half: revenue fell 17%, and segment profit before interest and tax declined to INR 3 crore from INR 13 crore. The company attributed the change mainly to the timing of project execution. Its INR 1,452 crore order book provides visibility, and management expects execution to pick up in the second half.
Looking ahead, management described a mixed operating environment. It said domestic sugar availability is tight, with opening stocks for the 2026–27 season estimated at about 3.5 million metric tons, the lowest level in more than a decade. The company also flagged uncertainty around crop outcomes and government policy on imports and stockholding. All eight sugar factories are positioned to operate for the season, with starts scheduled in stages, according to management.
For ethanol, the company warned that the new supply year could be challenging. Management said tender conditions exclude juice and B-heavy molasses and limit the use of FCI rice, while current maize prices would eliminate profitability for maize-based ethanol. It said feedstock costs, byproduct sales, fuel costs and conversion efficiency will be important to margins, with integrated, multi-feed operations better placed than standalone plants.
Management did not provide formal guidance. It said no major capital expenditure is planned and debt repayment remains a priority. The board has asked management to wait at least one quarter to assess cash generation before considering other uses of capital.
In the trading information provided with the results, Triveni shares were reported up 3.04% to $242.18. The same material said quarterly revenue of INR 18.21 billion was below a forecast of INR 18.84 billion, while no consensus estimate was given for the reported EPS of $1.40. The reported share-price movement and financial figures are presented as supplied in the source material.
Sources: Investing.com News.