Triveni's 3.36% operating margin trails peer median by 12.78 points
Other income exceeded pre-tax profit, while sugar and alcohol profitability gains partly offset weaker alcohol offtake and water execution.
Filed 29 Jul 2026, 17:54 IST · after market close · Triveni Engineering and Industries Ltd (TRIVENI)
Key takeaways
- Consolidated operating margin was 3.36%, leaving operating profit at Rs 53.05 cr on revenue of Rs 1,580.52 cr.
- Other income of Rs 14.78 cr exceeded profit before tax of Rs 4.68 cr, highlighting weak conversion from operations to reported profit.
- At 3.36%, operating margin ranked second-lowest among 14 sector peers, 12.78 percentage points below the 16.14% median.
Price around the results
Low operating profit left little room after finance costs
Consolidated operating margin was 3.36%, so the Rs 53.05 cr operating profit provided limited cover for Rs 31.92 cr of interest and Rs 31.23 cr of depreciation. Other income of Rs 14.78 cr was larger than the Rs 4.68 cr profit before tax, making non-operating income an important part of reported profitability. Net profit was Rs 3.65 cr, with EPS of Rs 0.17.
Sugar realisation and alcohol efficiencies offset a difficult operating backdrop
Management said higher sugar realisation, lower maize procurement costs, better DDGS realisation and operating efficiencies improved sugar and alcohol profitability. It also cited lower sugarcane yields, higher sugarcane prices and changing ethanol demand as operating challenges. Alcohol sales volume fell 19% because of lower orders, while the company said slower execution of the Prayagraj and Vadodara EPC jobs reduced water-business revenue.
Margin was second-lowest among 14 reported sector peers
Triveni's 3.36% operating margin was 12.78 percentage points below the 16.14% median for the 14 Fast Moving Consumer Goods peers that had reported the quarter. The company ranked second from the bottom on this measure. No quarter-on-quarter or year-on-year comparison is available here to establish a multi-quarter margin direction.
Capacity and water order book provide the operating context
Management said the IMIL business had increased capacity to 7.5 lakh cases per month, or 90 lakh cases per annum, following earlier capex announcements. The company reported a water-business closing order book of Rs 1,472 cr, including Rs 1,065 cr of extended-duration O&M contracts. Management also said it had participated in two water-sector bids worth more than Rs 300 cr and expected to win them as the lowest bidder.
Results were filed after market close
The consolidated results were filed after market close on 29 Jul 2026. There is therefore no post-results stock reaction to assess yet, and the stock's response cannot be compared with its history after earlier results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,581 cr |
| Other income | ₹15 cr |
| Expenses | ₹1,527 cr |
| Operating profit | ₹53 cr |
| Operating margin (%) | 3.36% |
| Interest | ₹32 cr |
| Depreciation | ₹31 cr |
| Profit before tax | ₹5 cr |
| Tax | ₹1 cr |
| Net profit | ₹4 cr |
| EPS (₹) | ₹0.17 |
Operating margin of 3.36% compares with a Fast Moving Consumer Goods sector median of 16.14% across 14 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.
This quarter
- Sugar profitability improved through higher realisation and alcohol profitability improved through lower maize costs and better DDGS realisation.
- The alcohol business continued its turnaround and contributed to the improvement in overall profitability.
Expansion
- Following FY25 capex announcements, the IMIL business increased capacity to 7.5 lakh cases per month or 90 lakh cases per annum.
New orders
- The water business had a closing order book of ₹1,472 crore, including ₹1,065 crore of extended-duration O&M contracts.
- The company participated in two water-sector bids worth more than ₹300 crore and expects to win them as the lowest bidder.
Competition
- The company is among the top five players in Uttar Pradesh's Indian Made Indian Liquor business.
Problems & risks
- The company cited lower sugarcane yields, higher sugarcane prices and evolving ethanol demand as challenges.
- Alcohol offtake was lower and water-business revenue declined during Q1 FY27.
- Alcohol sales volume declined 19% because of lower sales orders.
- IMIL sales volume declined marginally due mainly to a revision in Uttar Pradesh's excise quota allocation policy.
- Water-business revenue declined because of slow execution of the Prayagraj and Vadodara EPC jobs.
What to watch
- Whether consolidated operating margin moves above 3.36%.
- Whether the 19% alcohol-volume decline narrows in the next quarter.
- Execution against the Rs 1,472 cr water-business order book, including the Rs 1,065 cr O&M component.