Trident's margin rebounds QoQ, but remains below last year's first-quarter level
Costs outpaced revenue YoY, while lower depreciation and interest supported profit; the stock's initial rise was unusual against its past results-day record.
Filed 21 Jul 2026, 20:19 IST · after market close · Trident Ltd (TRIDENT)
Key takeaways
- Consolidated revenue grew +4.68% YoY, but expenses grew faster at +5.09%, narrowing operating margin by 0.32 percentage points.
- QoQ revenue grew +9.45% while expenses rose +5.82%, lifting operating margin by 2.86 percentage points to 16.78%.
- Net profit grew +12.95% YoY despite a 1.44-percentage-point rise in the tax rate, with depreciation down -24.36% and interest down -4.31%.
Price around the results
Q1 margin recovery follows three-quarter decline
Trident reported consolidated revenue growth of +4.68% YoY, but the +5.09% increase in expenses kept operating profit growth to +2.72%. The sequential picture was better: revenue rose +9.45% while expenses increased +5.82%, lifting operating margin by 2.86 percentage points to 16.78%. Margin had fallen from 17.10% in Q1FY26 to 11.99% in Q2FY26 and 8.62% in Q3FY26 before recovering to 13.92% in Q4FY26.
Lower depreciation supported profit growth
Profit before tax grew +15.19% YoY and net profit grew +12.95%, even as the tax rate rose by 1.44 percentage points. Lower depreciation, down -24.36%, and lower interest, down -4.31%, supported the increase in pre-tax profit. Other income contributed 7.69% of pre-tax profit, so it was a meaningful but not dominant part of earnings.
Margin remains above the reported peer median
Trident's 16.78% operating margin was 5.29 percentage points above the 11.49% median for 389 Consumer Discretionary peers that had reported the same quarter. The sequential recovery therefore places margins above the sector comparison, although they remain 0.32 percentage points below Q1FY26.
Presentation flags solar and digital initiatives
The company said it had installed solar power capacity of 51.98 MWP. Management said it plans to develop Digital Trident capabilities and is undertaking AI-driven projects; the company also said it has secured 10 patents. The presentation described Trident as the largest player by terry towel capacity and one of the largest players in India's home textile space.
Initial stock reaction was unusual in direction
The stock rose +1.39% on the first session after the results, with a +1.99% opening gap, and traded at 8.68 times its normal volume. The move was close to the 1.82% median absolute reaction after the last eight results, but unusual in direction because all eight prior reactions were negative; the five-session return was -0.96%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,787 cr | ₹1,633 cr | +9.45% | +4.68% |
| Other income | ₹17 cr | ₹21 cr | -21.12% | -16.94% |
| Expenses | ₹1,487 cr | ₹1,405 cr | +5.82% | +5.09% |
| Operating profit | ₹300 cr | ₹227 cr | +31.89% | +2.72% |
| Operating margin (%) | 16.78% | 13.92% | — | — |
| Interest | ₹30 cr | ₹32 cr | -6.89% | -4.31% |
| Depreciation | ₹70 cr | ₹70 cr | +0.65% | -24.36% |
| Profit before tax | ₹216 cr | ₹146 cr | +47.67% | +15.19% |
| Tax | ₹58 cr | ₹44 cr | +30.81% | +21.72% |
| Net profit | ₹158 cr | ₹102 cr | +55.02% | +12.95% |
| EPS (₹) | ₹0.31 | ₹0.20 | +55.00% | +14.81% |
Operating margin of 16.78% compares with a Consumer Discretionary sector median of 11.49% across 389 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.39% | +2.19% |
| Next session | +0.36% | — |
| 5 sessions | -0.96% | -1.21% |
| 15 sessions | -1.75% | — |
| 30 sessions | -4.14% | — |
Volume on the results session was 8.68× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company installed solar power capacity of 51.98 MWP.
New initiatives
- The company plans to develop Digital Trident capabilities.
- The company is undertaking AI-driven projects.
- The company has secured 10 patents.
Competition
- The company describes itself as the largest player by terry towel capacity.
- The company describes itself as one of the largest players in India's home textile space.
What to watch
- Operating margin versus 16.78% after its 2.86-percentage-point QoQ recovery.
- Whether expenses continue to grow below revenue after +5.82% expense growth versus +9.45% revenue growth QoQ.
- Tax rate versus 26.89% after 30.36% in Q4FY26.