Triveni Turbine Ltd Reports Record Order Booking and Acquisitions, Despite Flat Revenue Growth
Indian turbine manufacturer Triveni Turbine Ltd has recently reported a record order booking of ₹6.52 billion during the quarter, a 14% increase year-over-year. This achievement is particularly significant given that revenue from operations showed flat growth compared to the same period last year. The company's closing order book reached an all-time high of ₹22.20 billion, up 24% year-over-year. Export sales increased by 27% to ₹2.82 billion, with export contribution to sales rising to 56% in Q2 FY26 from 44% in Q2 FY25.
Expansion and Acquisitions Strengthen Company's Footprint
Triveni Turbine Ltd has made significant strides in expanding its operations through strategic acquisitions. Specifically, the company acquired the remaining 30% equity stake in TFE Engineering PTY Limited in South Africa, consolidating its ownership and strengthening operational control. This move is likely to enhance the company's global presence and capabilities.
Challenges Arise from Global Trade Uncertainties
Despite these positive developments, Triveni Turbine Ltd faced challenges arising from global trade uncertainties. Export order booking declined by 16% year-over-year to ₹2.46 billion. Additionally, revenue from operations declined by 9% year-over-year in H1 FY26 to ₹8.78 billion. The delay in export order bookings is primarily attributed to the uncertainty surrounding tariffs in the U.S. market.
CEO Outlook and Plans for Growth
In a conference call with investors, the CEO of Triveni Turbine Ltd highlighted the company's robust growth in domestic sales, which rose by 20% year-over-year in Q2 FY26. However, he noted that the domestic market growth is partly due to a low base in the previous year and may not be sustainable at such high rates. To mitigate this risk, the company plans to strengthen its presence in export markets.
R&D Efforts Focus on New Product Development
The CEO also emphasized the importance of Triveni Turbine Ltd's R&D efforts. The company is focusing on developing new products like carbon dioxide-based heat pumps, which have been well-received and are expected to drive revenue growth in the short term.
Domestic Market Growth Prospects
Regarding domestic market prospects, the COO highlighted that while 50% quarter-on-quarter growth may be unlikely to continue, a 20-25% annual growth rate is reasonable. To achieve this growth, the company will focus on improving operational efficiency and customer engagement.
Margins and Project Timeline
With regards to the NTPC large ESS order, one of Triveni Turbine Ltd's key projects, the CEO reported that it is progressing well and expected to be commissioned in Q1 FY27. Moreover, margins for this project are expected to meet expectations, with most purchase orders already placed.
Refurbishment Business Continues to Deliver
In the U.S., the refurbishment business continues to report impressive results. A strong inquiry pipeline has been observed, despite product delays related to tariffs. The revitalization segment remains unaffected by these uncertainties and is poised to contribute to revenue growth in the near future.
Future of Company Under CEO Leadership
Triveni Turbine Ltd's COO and other key executives reiterated their confidence in the company's ability to perform under current market conditions, despite some challenges experienced during FY26. With a strong commitment to R&D, customer service, and operational performance, Triveni Turbine Ltd is poised for consistent growth.
Conclusion:
Triveni Turbine Ltd reported record order booking of ₹6.52 billion and an acquisition that strengthens its footprint in South Africa. Despite flat revenue and decline in Q2 FY26, the company demonstrated a well-planned approach to addressing challenges from global trade uncertainties. Triveni's focus on R&D efforts is set to deliver promising outcomes, such as new products like carbon dioxide-based heat pumps.
Moreover, Triveni Turbine Ltd sees opportunities in the domestic market and is focused on driving growth through its diversified product segment. By emphasizing refurbishment and after-sales services in international markets, the company will likely boost revenue while expanding global operations. In conclusion, with continued innovation from R&D initiatives, efficient execution of projects, and strong leadership guidance by CEO, the company's positive results indicate a potentially successful year ahead.
We can say confidently that Triveni Turbine Ltd has built up itself to become one of India's top leading turbine manufacturing industries due to its ongoing innovative strategies in research and development.