Triveni Turbine Q2 Net Profit Tumbles 42% to ₹53.3 Crore as Export Revenue Shrinks

Triveni Turbine Ltd posted a 41.6% decline in consolidated net profit to ₹53.3 crore for the second quarter of FY27, down from ₹91.2 crore in the corresponding period last year. Operating margins collapsed as high-margin overseas shipments stalled. Revenue from operations dipped 3% to ₹491 crore against ₹506 crore in the year-ago quarter.

Yet traders looked past the profit erosion. Shares of Triveni Turbine ended Wednesday at ₹515.10 on the BSE, advancing ₹12.55, or 2.50%, as institutional desks focused on an expanding industrial order pipeline.

Export Slump Squeezes Core Margins

The bottom-line contraction traced directly to an abrupt geographical shift in deliveries. Domestic sales rose 51.8% to ₹340 crore during the quarter, filling manufacturing capacity. But export billing tumbled 46.6% to ₹151 crore. That swing altered the product mix. Overseas shipments accounted for just 30.7% of total revenue during the quarter, down from 55.7% a year ago.

The retreat in foreign sales took a heavy toll on operational profitability.

Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 43.9% to ₹64 crore from ₹114 crore. Operating EBITDA margin shrank by 1,000 basis points to 13% from 23% in the prior-year period. Across operations, EBITDA stood at ₹85.8 crore with a margin of 17.5%, compared with 26.3% a year earlier. Profit before tax slid 39.2% to ₹75.7 crore, compressing the PBT margin to 15.4% from 24.6%.

A product-level breakdown showed divergence between equipment manufacturing and servicing. Core product revenue rose 4.4% to ₹343 crore. In contrast, aftermarket service revenue fell 16.7% to ₹148 crore, representing 30.1% of top-line billing.

Order Book Climbs to Record ₹2,453 Crore

While quarterly shipments lagged, forward demand hit new records. Triveni Turbine booked ₹764 crore in fresh orders during the second quarter, marking a 17.2% year-on-year increase and establishing its highest-ever quarterly order intake.

Inflow growth came from overseas clients. Export order booking surged 49.8% to ₹368 crore from ₹246 crore, capturing 48.1% of the intake compared to 37.6% last year. Product orders climbed 32.5% to ₹601 crore. But aftermarket bookings slipped 17.8% to ₹164 crore, accounting for 21.4% of orders, while domestic order booking edged down 2.5% to ₹397 crore.

That intake expanded the company's total order backlog to ₹2,453 crore as of September 30, 2026, up 10.5% from ₹2,220 crore twelve months earlier. Export commitments formed 59.2% of the pending book at ₹1,452 crore—a 29.3% increase. Aftermarket contracts more than doubled to ₹639 crore, surging 105.4% to claim 26.1% of the pipeline compared to 14% a year earlier.

First-Half Compression and South Africa Facility

Cumulative numbers for the first half of FY27 reflected the same margin headwinds. Six-month revenue rose 6.4% to ₹934 crore, lifted by a 40.7% climb in domestic sales to ₹580 crore. But half-year exports fell 24% to ₹354 crore, dropping their top-line contribution to 37.9% from 53% in H1 FY26. Aftermarket revenue made up 30.8% of revenue, down 2.3%.

Operating earnings suffered across the half-year ledger. Six-month EBITDA fell 27.7% to ₹166 crore as margins contracted 833 basis points to 17.7%. Consolidated profit before tax dropped 31.4% to ₹145 crore, while net profit fell 32.9% to ₹104 crore, shrinking the net margin to 11.2% from 17.8%.

Half-year order bookings climbed 12.2% to ₹1,333 crore from ₹1,188 crore. Export bookings rose 51.6% to ₹752 crore, making up 56.4% of the intake, while aftermarket bookings grew 12.3% to ₹387 crore.

The margin contraction follows a weak start to the fiscal year, when first-quarter profit dropped 20% and sparked an 8% selloff in the stock.

Market Context: Capital goods manufacturers carrying heavy export exposures face margin swings when delivery schedules shift between quarters. While Triveni Turbine's current billing cycle absorbed the impact of delayed overseas deliveries, the 49.8% expansion in quarterly international bookings indicates that underlying end-market demand remains intact.

In an accompanying regulatory filing, Triveni Turbine announced an expanded financial backstop for international operations. The board approved an increase of up to $6 million in its corporate guarantee for Triveni Turbines Africa Pty Limited, its step-down wholly owned subsidiary in South Africa. The non-fund-based working capital facility, arranged with a commercial bank, increases the unit's total credit ceiling from $9 million to $15 million. The regulatory filing confirmed that promoters hold no interest in the transaction, with obligations triggered only if the subsidiary defaults on a facility claim.