Whalesbook
Triveni Turbine Limited announced its Q4 and full-year FY26 earnings, highlighting a record annual turnover of ₹21.81 billion, marking a 9% growth over FY25. The company's export revenue was a key driver, growing by 30% year-on-year and contributing 58% of the total revenue, up from 48% in the previous year. The fourth quarter of FY26 proved particularly strong, with revenue reaching a record ₹6.8 billion, up 26% year-on-year, with exports making up 60% of this quarterly figure.
Profitability metrics showed EBITDA at ₹5.27 billion with healthy margins of 24.2%. Profit before tax (before exceptional items) remained stable at ₹4.9 billion. However, profit after tax saw a slight 3% decline due to an exceptional charge of ₹157 million related to employee benefit obligations.
Order booking in Q4 FY26 increased by 19% year-on-year to ₹7.54 billion. Export orders saw a substantial surge of 174% to ₹5.16 billion, representing 69% of the total bookings for the quarter. The closing order book stood at ₹20.54 billion, an 8% increase year-on-year.
Global Reach and New Frontiers
The record turnover and robust export growth underscore Triveni Turbine's expanding global footprint and strong demand for its products. The substantial order book provides clear visibility for future revenue and earnings. The company is also strategically pushing into new segments like geothermal products and investing in R&D for innovative solutions such as carbon dioxide-based platforms and organic Rankine cycle turbines, signaling diversification and future growth drivers.
Navigating Challenges
While FY26 performance was strong, the company navigated a complex global environment marked by geopolitical disruptions and tariff uncertainties. The significant boost in the current financial year's performance was largely driven by a robust Q4, which compensated for a softer first half. Export revenue has consistently been a growth engine, and its increasing share in total revenue highlights its growing strategic importance.
Outlook and Future Growth
Management anticipates continued long-term growth and stable margin rates. FY27 is expected to see revenue realization weighted towards the latter half of the year due to the execution profile of the current order book. The company is confident in its growth trajectory, bolstered by an enquiry pipeline that has nearly doubled.
U.S. Market and Specific Orders
The company's U.S. subsidiary, which incurred a loss in FY26, is projected to become positive in the current year and achieve profitability from FY28 onwards. However, potential delays in the U.S. market due to permitting and water access issues are key risks to watch. Currency volatility resulted in a mark-to-market loss of ₹8.5 crores in Q4 FY26, indicating ongoing forex-related impacts. Notably, the NTPC battery energy storage order came with lower profit margins of around 3% PBT.
Competitive Edge
While specific peer data was not detailed, Triveni Turbine competes globally based on its value proposition, reliability, and service, rather than solely on price. Its success in securing orders across diverse geographies and industries, including the data center and API segments, reflects its strong competitive positioning in the industrial steam turbine market.
Key Metrics to Monitor
Average trade receivable days increased to 84 days from 49 days in March 2025, attributed to large project execution and end-of-period billing. The total enquiry book has expanded to around 18 GW, double that of FY25, with North America showing a near 1,000% increase in its contribution to the U.S. enquiry book.
Investors will closely monitor the conversion of this expanded enquiry pipeline into firm orders, particularly from the U.S. market. Progress on new product segments like geothermal and CO2-based solutions, along with the U.S. subsidiary's path to profitability, will be key areas to track.