Triveni Engineering & Industries Ltd ( Triveni Engineering & Industries Ltd ) has disclosed the specific allocation of the cost of acquisition for equity shares under its ongoing Scheme of Arrangement with Triveni Power Transmission Ltd (TPTL). This clarification is critical for shareholders to determine their capital gains tax liability following the corporate restructuring, which involves TEIL as the Demerged Company, Sir Shadi Lal Enterprises Ltd as the Amalgamating Company, and TPTL as the Resulting Company.

The allocation was communicated in a letter dated August 3, 2026, addressed to the BSE Limited and National Stock Exchange of India Limited. The company cited Sections 73(1) (Table Serial No. 14) and 73(1) (Table Serial No. 15) of the Income-Tax Act, 2025, as the regulatory basis for this distribution of acquisition costs.

Allocation of Cost of Acquisition

The filing details how the total cost of acquisition for equity shares is split between the two entities involved in the arrangement. This percentage-based allocation allows investors to apportion their original purchase price between the shares they retain in TEIL and the new shares allotted in TPTL.

Geeta Bhalla, Group Vice President & Company Secretary of Triveni Engineering & Industries Ltd, signed the communication. She holds Membership No. A9475. The document confirms that the consequent issue of shares of TPTL to TEIL shareholders follows this cost structure.

What the Numbers Show

The significant disparity in the cost allocation — with TEIL retaining 86.60% of the historical cost base versus 13.40% for TPTL — indicates that the majority of the tax-adjusted value remains with the original entity. For shareholders, this means that the cost basis for calculating capital gains on future sales of TPTL shares will be substantially lower than that for TEIL shares, potentially impacting the immediate tax incidence if TPTL shares are sold shortly after allotment. The disclosure ensures transparency in tax planning for investors participating in the Scheme of Arrangement.

Triveni Engineering & Industries reported a consolidated net profit of ₹3.65 crore for the first quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from the ₹6.62 crore loss recorded in the corresponding period of FY26. This profitability shift was driven by higher sugar realisations, increased sales volumes, and improved operating performance in the Alcohol segment due to lower maize procurement costs. The Board of Directors approved the unaudited financial results on July 29, 2026, pursuant to Regulation 30 of the SEBI LODR Regulations, following the completion of a major structural reorganisation approved by the National Company Law Tribunal (NCLT). Management, in its post-results concall, provided a constructive near-to-medium term outlook across all key business segments, while also flagging active deliberations on capital allocation for future growth.

A key development during the quarter was the finalisation of the Composite Scheme of Arrangement involving Triveni Engineering & Industries Limited (TEIL), Sir Shadi Lal Enterprises Limited (SSEL), and Triveni Power Transmission Limited (TPTL). Certified copies of the NCLT orders were filed with the Registrar of Companies on May 19, 2026, establishing April 1, 2025, as the amalgamation appointed date for SSEL into TEIL and April 1, 2026, as the demerger appointed date for the Power Transmission Business (PTB) into TPTL. Consequently, TPTL ceased to be a subsidiary and became an associate, with TEIL's holding diluted to 29.88%. The carrying value of assets transferred was ₹445.28 crore, with ₹312.23 crore adjusted against other equity.

Financial Performance Overview

The following table highlights the key consolidated financial metrics for Q1FY27 compared to the previous year:

*EBITDA figures are derived from segment results and unallocable expenses as disclosed in the standalone segment report, which serves as a proxy for consolidated operating performance given the discontinued operations classification.

Standalone results showed a net loss of ₹1.72 crore, compared to a ₹14.31 crore loss in Q1FY26. Standalone revenue from operations stood at ₹1,949.91 crore, up from ₹1,903.95 crore year-on-year.

Segment-wise Performance

The Sugar business remained the primary revenue driver, with domestic dispatches rising 7.4% to 277,403 tonnes. Average realisation improved by 2.7% to ₹41,525 per metric tonne, leading to a segment PBIT of ₹14 crore, up from ₹8 crore in Q1FY26. Sugar inventory as on June 30, 2026, was 3.59 lakh MT, valued at ₹38.41/kg.

In the Alcohol segment, sales volume declined by 19.0% to 50,483 kilolitres due to lower orders. However, profitability improved with a PBIT of ₹31 crore, up from ₹23 crore, aided by lower maize costs and better Distillers Dried Grain Solubles (DDGS) realisation. The Water business saw revenue decline by 21.3% to ₹43 crore and PBIT drop to ₹2 crore from ₹11 crore, attributed to slow execution of EPC projects.

Management Guidance — Concall Update

Management provided a positive overall assessment of Q1FY27, noting performance was better than expectations, and expressed confidence in a good Q2. The Sugar and Distillery segments are expected to deliver a significantly better operating season in Q3 and Q4 FY27. Notably, the Board also disclosed that it is actively examining capital allocation for future growth, observing that while the Water business is an excellent business, its return on capital employed is not ideal. The Country Liquor business was acknowledged to have good return metrics, but its limited capital requirements and geographic constraints were cited as factors tempering its growth potential. The following table summarises the key guidance points shared during the concall:

Board Resolutions and Leadership Changes

The Board approved the appointment of Vivek Viswanathan as an Additional Director designated as Whole-time Director and Key Managerial Personnel for a period of five years, effective August 1, 2026. This appointment is subject to shareholder approval at the ensuing Annual General Meeting. Mr. Viswanathan brings over 20 years of experience in the Sugar and Distillery Industry.

Additionally, the Board approved a revision in remuneration payable to Tarun Sawhney, Vice Chairman & Managing Director, with effect from August 1, 2026, till the remaining period of his tenure up to September 30, 2028. This revision is based on the recommendation of the Nomination and Remuneration Committee and is also subject to shareholder approval. Mr. Sawhney ceased to be a Key Managerial Personnel of the Company upon his appointment as Managing Director of TPTL, effective July 28, 2026, but continues to hold office as Vice Chairman & Managing Director of Triveni Engineering.

What the Numbers Show

The divergence between standalone and consolidated results highlights the impact of the recent restructuring. While the standalone entity reported a loss due to high inventory changes (₹948.48 crore) and cost of materials (₹341.79 crore), the consolidated bottom line turned positive. This was aided by a share of profit from associates and joint ventures amounting to ₹4.34 crore in the consolidated statement, reflecting the equity method accounting for TPTL post-demerger. The classification of PTB as discontinued operations in comparative periods allows for a clearer view of the continuing sugar and engineering businesses.