Triveni Turbine profit falls 21% as operating margin keeps sliding
Revenue grew 19.23% year on year, but expenses rose 31.47%; management said margin recovery is expected in the latter half of FY27.
Filed 10 Aug 2026, 18:19 IST · after market close · Triveni Turbine Ltd (TRITURBINE)
Key takeaways
- Consolidated net profit fell 20.65% year on year to Rs 51.1 cr as expenses grew 31.47%, faster than revenue at 19.23%.
- Operating margin narrowed 8.23 percentage points year on year to 11.59%, its third straight quarterly decline from the 22.64% recorded in Q2FY26.
- Other income contributed 40.75% of pre-tax profit, making the Rs 51.1 cr net profit less reflective of operating performance.
Price around the results
Revenue growth did not translate into profit growth
Consolidated revenue rose 19.23% year on year to Rs 442.7 cr, but net profit declined 20.65% to Rs 51.1 cr. Expenses grew 31.47%, so operating profit fell 30.3% and operating margin narrowed 8.23 percentage points. Management said deliveries of some large projects were spread across quarters and that the quarter included the remaining bought-out scope from those projects.
Operating margin fell to an 11.59% multi-quarter low
Operating margin declined 7.24 percentage points sequentially as revenue fell 34.86% while expenses fell only 29.04%; costs therefore grew faster than revenue on the quarter. This extends the decline from 22.64% in Q2FY26 to 21.49% in Q3FY26, 18.83% in Q4FY26 and 11.59% in Q1FY27. The margin was 3.05 percentage points below the 14.64% median for 91 reported Industrials peers.
Other income carried a large part of pre-tax profit
Other income rose 28.51% year on year and accounted for 40.75% of pre-tax profit. The tax rate was broadly stable, rising 0.54 percentage points year on year, while interest expense fell 25.00%; neither offset the operating decline. This makes the quarter's profit quality weaker than the headline net-profit figure suggests.
Management pointed to later-year margin recovery
Management said it was confident of sustaining year-on-year business growth and recovering margins in the latter half of FY27. The company said it augmented production capabilities through digitalised hydro testing for turbine casings and laser hardening processes. It also said aftermarket orders benefited from contract wins in geothermal and utility segments, while West Asia geopolitical uncertainty may cause near-term fluctuations.
Results were filed after market close
The results were filed after market close, so there is no post-result market reaction to assess yet. Across the last eight result reactions, the stock rose five times and fell three times, with a median absolute move of 6.94%, providing the historical context for the eventual response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹443 cr | ₹680 cr | -34.86% | +19.23% |
| Other income | ₹28 cr | ₹16 cr | +76.40% | +28.51% |
| Expenses | ₹391 cr | ₹552 cr | -29.04% | +31.47% |
| Operating profit | ₹51 cr | ₹128 cr | -59.92% | -30.30% |
| Operating margin (%) | 11.59% | 18.83% | — | — |
| Interest | ₹1 cr | ₹1 cr | -14.29% | -25.00% |
| Depreciation | ₹9 cr | ₹9 cr | +4.44% | +22.08% |
| Profit before tax | ₹70 cr | ₹134 cr | -48.14% | -20.07% |
| Tax | ₹19 cr | ₹33 cr | -42.77% | -18.42% |
| Net profit | ₹51 cr | ₹102 cr | -49.85% | -20.65% |
| EPS (₹) | ₹1.60 | ₹3.21 | -50.16% | -21.18% |
Operating margin of 11.59% compares with a Industrials sector median of 14.64% across 91 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is confident of sustaining year-on-year business growth and margin recovery in the latter half of FY27.
Expansion
- The company augmented production capabilities with digitalized hydro testing for turbine casings and advanced laser hardening processes.
New orders
- The aftermarket order book benefited from contract wins in the geothermal and utility segments.
New initiatives
- The company adopted digitalized hydro testing for turbine casings and advanced laser hardening processes.
Competition
- The company ranks among the top two globally in industrial steam turbines.
Problems & risks
- Deliveries of certain large projects were spread across quarters, and the quarter included remaining bought-out scope from those projects.
- Geopolitical uncertainties in West Asia may cause near-term fluctuations.
What to watch
- Whether operating margin recovers from 11.59% after the third straight quarterly decline.
- Whether expenses grow slower than revenue after rising 31.47% year on year against revenue growth of 19.23%.
- Whether other income remains close to 40.75% of pre-tax profit.