Triveni Turbine Stock CRUMBLES! Brokerage Slashes Target by 6.5% – What Investors MUST Know NOW!

Author

Satyam Jha | Whalesbook News Team

Detailed Coverage:

Prabhudas Lilladher has downgraded its rating for Triveni Turbine from 'BUY' to 'Accumulate' and revised its price target downwards to Rs 609 from Rs 650. The brokerage firm has also reduced its Earnings Per Share (EPS) estimates for FY27 and FY28 by 7.4% and 8.3% respectively, factoring in delays in dispatches and slower order conversion, exacerbated by tariff-related uncertainties.

In the second quarter of fiscal year 2026 (Q2FY26), Triveni Turbine reported largely flat year-over-year revenue. However, its EBITDA margin saw a slight improvement, increasing by 41 basis points to 22.6%.

Segment-wise, domestic revenue experienced a decline of approximately 20% year-over-year due to a reduced order backlog from the previous year. Despite this, domestic order inflows saw a substantial surge of 51.7% year-over-year, driven by strong demand across the steel, cement, infrastructure, API, and utility turbine sectors.

Export revenue increased by about 27% year-over-year, supported by robust demand in Europe and the Middle East. Conversely, export order inflows fell by approximately 19% year-over-year, attributed to tariff-related delays and a subdued market in the United States. The refurbishment segment in the US continues to show positive traction and is expected to support near-term growth.

**Outlook and Valuation:** The stock is currently trading at a P/E ratio of 36.1x and 32.0x on FY27E and FY28E EPS, respectively. Prabhudas Lilladher is rolling forward its valuation to Sep’27E with a P/E of 38x (previously 40x Mar’27E). The downgrade reflects concerns that slow order finalization, dispatch delays, and softer exports may weigh on performance.

**Impact:** This news is expected to negatively impact Triveni Turbine's stock price in the short term, potentially leading to investor caution. It may also influence sentiment for other companies in the industrial turbine manufacturing sector facing similar market or regulatory headwinds. Rating: 6/10

**Difficult Terms:** * **EPS (Earnings Per Share):** The portion of a company's profit allocated to each outstanding share of common stock. It serves as an indicator of a company's profitability. * **EBITDA Margin:** A profitability ratio calculated as EBITDA divided by revenue. It reflects a company's operational efficiency before accounting for financing, tax, and non-cash charges. * **YoY (Year-over-Year):** A method of comparing data from one period to the same period in the previous year. * **Order Backlog:** The value of contracts that have been awarded to a company but not yet completed. * **Order Inflow:** The total value of new orders received by a company during a specific reporting period. * **API (Active Pharmaceutical Ingredient):** The biologically active component of a drug that produces the intended therapeutic effect. * **Tariff:** A tax imposed on imported or exported goods, often used to protect domestic industries or generate revenue. * **Refurbishment:** The process of repairing and improving something that is old or damaged to make it look new again. * **P/E (Price-to-Earnings) Ratio:** A valuation ratio of a company's current share price compared to its per-share earnings (EPS). It is used to determine the market value of a company's stock. * **Downgrade:** An analyst's or rating agency's action to lower a stock's rating, suggesting a less favorable outlook. * **Accumulate:** A stock recommendation indicating that investors should increase their holdings in the stock, albeit cautiously.