Triveni Turbine Q2 FY27: PAT falls 42% YoY to ₹53 Cr as margins stay squeezed at 12.9%
PAT -41.69% YoY · revenue -3% · margins compressing · inline vs street
₹491 Cr
-3% YoY
₹53.3 Cr
-41.69% YoY
10.39%
-7pp YoY
₹1.68
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.
Q2 FY-2027 vs prior quarters
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.
What the summary numbers don't show
EPS: consolidated ₹1.68 (vs ₹2.87 YoY, ₹1.60 QoQ) — standalone ₹1.74
FY27 will be back-ended with full-year revenue and profit growth; PBT margin over 20% sustainable in medium-to-long term. H2 margin recovery expected. No specific FY27 revenue/profit target given.
— This quarter: missed
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.
W1
PBT margin breaking above the ~15% band held for two straight quarters toward management's stated >20% sustainable target
W2
NTPC project execution — the low-margin order management flagged at the Q1 concall as the margin drag
W3
Order inflow/backlog and US subsidiary progress toward FY27 break-even — both flagged pre-result but not disclosed in this filing
Margin Recovery Watched as Strategic Orders Persist
After Q1's margin squeeze from low-margin NTPC delivery, the Street watches whether Triveni can restore PBT margins toward its 20%+ baseline while a strong order book supports medium-term growth.
What to Expect
Triveni Turbine's Q2 will be read first on margin trajectory. Q1 FY27 revenue grew 19.2% YoY to ₹442.7 Cr, but EBITDA compressed to 18% due to execution of a near-zero-margin NTPC carbon-dioxide storage project (~₹1.8 bn pending), heavy in Q2–Q3. Management has signaled sequential improvement in EBITDA margins toward the historical >20% PBT baseline; Q2 will show if that's materializing.
~₹440–460 Cr
Tracking Q1 run-rate; export bookings of ₹384 Cr in H1 support continuation
19–20%
Sequential lift from Q1's 18%, but NTPC project remains a drag; full recovery toward 20%+ hinges on higher-margin order execution
₹48–55 Cr (estimate)
Margin lift will flow to bottom-line, though Q1's PAT at ₹51.1 Cr (down 20.6% YoY) set a low base
₹2,180 Cr
Strong visibility into H2 and beyond; key source of medium-term confidence despite near-term margin headwinds
A strong quarter would show: sequential EBITDA margin improvement (to 19%+), stable or growing revenue, and early signs of the NTPC project's workload easing as execution progresses. A weak quarter would signal further margin pressure, revenue miss relative to the ₹440–460 Cr band, or delays in higher-margin order intake that threaten FY27 full-year PBT guidance.
On Track?
Yes, based on disclosures and filings. Management reiterated guidance for FY27 margin recovery and US subsidiary profitability by year-end. The order book of ₹2,180 Cr—up from ₹1,800 Cr last year—underpins confidence that the current quarter is a trough, with H2 seeing sequential improvement. The domestic demand from steel, cement, and power sectors remains strong, and export bookings (₹384 Cr in first half) show renewed momentum. The NTPC project is a known, finite headwind; completion in Q3 should lift the baseline back toward historical 20%+ PBT.
The Street's View
Since Last Quarter
The board approved corporate guarantees for working capital facilities for step-down subsidiaries (Dubai and South Africa entities) on Aug 10, supporting international expansion. FII ownership has steadily declined from 28% (Q1 FY25) to 20.58% (Q1 FY27), a -7.4pp shift, reflecting the valuation reset and margin concerns. The trading window was closed on Sep 24 ahead of this result. No major operational disruptions or capital raises have been announced.
What to Watch on Result Day
1 · Margin Progression
EBITDA margin vs. 18% in Q1—a sequential rise to 19–20% would validate management's trajectory. Anything below 19% signals execution risk or deeper NTPC drag than expected.
2 · NTPC Project Status
Disclosure of remaining billing, delivery timeline, and expected margin recovery will determine H2 outlook. If execution is ahead, the stock has upside.
3 · Order Inflow & Backlog
New orders in Q2 and updated order-book guidance. Strength here could offset near-term margin concerns and reinforce the medium-term growth narrative.
4 · US Subsidiary Progress
Triveni Turbines Americas' profitability path for FY27-end. Early signals of cost reduction or revenue ramp would underscore management's execution credibility.
5 · FY27 Guidance Reiteration
Any revision to full-year PBT margin or revenue targets will reshape the narrative. Unchanged guidance on margin recovery is a bullish signal.
Triveni Turbine enters Q2 with a strong order book and clear near-term margin headwinds from the NTPC project. The Street sees Buy upside to ₹700+, but execution risk is real: margin recovery must prove sequential and durable. The company is guiding to >20% PBT by year-end and targets US profitability—realistic if execution stays on plan. Margin progression and NTPC billing/timeline will dominate the read; expect volatility until H2 trends clarify.