Triveni Turbine Q2 FY27: PAT falls 42% YoY to ₹53 Cr as margins stay squeezed at 12.9%

Triveni Turbine's consolidated Q2 FY27 (quarter ended September 30, 2026) revenue came in at ₹491.0 Cr, down 3.0% year-on-year from ₹506.2 Cr but up 10.9% sequentially from Q1's ₹442.7 Cr. Consolidated PAT fell 41.7% YoY to ₹53.3 Cr from ₹91.4 Cr, even as it rose a modest 4.3% QoQ from ₹51.1 Cr — the YoY comparison is the one that matters: revenue held roughly flat while profit nearly halved, confirming the margin squeeze flagged at Q1 persisted into Q2. Against the pre-result preview (revenue ~₹440-460 Cr, PAT ₹48-55 Cr, EBITDA margin target 19-20%), the quarter beat on revenue and landed within the PAT range, but missed on margin — operating margin (OPM) was 12.9%, nowhere near the 19-20% the Street was modelling.

The margin story is the quarter's real driver. OPM improved sequentially to 12.9% from Q1's 11.6% low, but net profit margin actually slipped to 10.4% from 10.9% because other income fell to ₹22.2 Cr from ₹28.4 Cr, masking the operating-level recovery at the PBT line (PBT margin on revenue was ~15.4%, essentially flat-to-down versus 15.8% in Q1). Both quarters carried zero exceptional items, so the YoY PAT decline is a clean, non-one-off read — margins compressed from 22.6% OPM a year ago to 12.9% now, consistent with the low-margin NTPC order mix management called out as the drag at the August Q1 concall.

The stock went into the print at ₹515.7, down 0.9% over the past month of trading.

EPS: consolidated ₹1.68 (vs ₹2.87 YoY, ₹1.60 QoQ) — standalone ₹1.74

Management's prior guidance (Q1 concall) called for H2 margin recovery and a PBT margin above 20% as a medium-to-long-term sustainable level, with FY27 explicitly back-ended and no specific numerical target given. Q2 is the first H2 print and the data is mixed: OPM ticked up sequentially, but PBT margin on revenue was flat-to-down QoQ, so the stated recovery hasn't clearly shown up yet — call it a miss against the explicit H2-recovery framing, though it is only one quarter into H2. Standalone PAT of ₹55.5 Cr came in about 4% above the consolidated ₹53.3 Cr; the gap traces to overseas subsidiaries, where the auditors' review flags a combined ~₹1.8 Cr net loss across four subsidiaries this quarter — consolidated is the weaker, primary read here. Separately, the board enhanced the corporate guarantee backing South African subsidiary TTAPL's working-capital facility to USD 15 million from USD 9 million, consistent with continued support for the overseas units even as they run at a loss.