Triveni Engineering & Industries Ltd. reported a 23% year-on-year increase in revenue for the first quarter, despite facing margin pressures across its business segments. The company's consolidated revenue reached ₹1,598.00 crore, driven by strong performance in its alcohol and sugar dispatches.

Key Financial Highlights

Segment Performance

Sugar Business

• Consolidated sugar dispatches increased by 14%
• Sugar realizations improved by 4%
• Segment profit declined by 80% to ₹7.60 crore due to higher production costs
• Gross sugar recovery fell to 10.80% from 11.49% in the previous year

Alcohol Business

• Alcohol dispatches surged by 53%
• Record quarterly alcohol production of 6.50 crore litres
• 27% of sales came from lower-margin FCI rice-based ethanol

Power Transmission Business

• Order booking increased by 15%
• Record closing order book of ₹423.00 crore, up 38% YoY

Engineering Business

• Overall engineering business order book reached ₹1,975.00 crore, representing 32% growth

Debt Position

• Stand-alone debt increased to ₹1,385.00 crore from ₹1,150.00 crore
• Consolidated gross debt rose to ₹1,688.00 crore from ₹1,280.00 crore

Management Outlook

The management expects margin improvements in the coming quarters, citing:

1. Reduced FCI rice usage in ethanol production
2. Better maize procurement strategies
3. Operational efficiencies

Corporate Updates

Triveni Engineering is awaiting regulatory approvals for:

1. Proposed amalgamation with Sir Shadi Lal
2. Demerger of Power Transmission business

The company targets completion of these corporate actions in Q1 of the next fiscal year.

Analyst Conference Call Highlights

In the recent analyst conference call, Tarun Sawhney, Vice Chairman and Managing Director, provided additional insights:

• The company is working on improving steam economies in distilleries to reduce costs
• Ethanol blending program in India is expected to expand, with potential targets of 27% blending in the future
• The defense segment of the Power Transmission business is ramping up, with a new manufacturing facility expected to be operational within this calendar year

Triveni Engineering continues to navigate challenges in its core businesses while positioning itself for future growth opportunities in the ethanol and power transmission segments.

Triveni Engineering & Industries Ltd. (TEIL) has unveiled ambitious plans to enhance its turbine production capacity and restructure its business operations, as outlined in the company's latest investor brief for Q1 FY26.

Expansion of Turbine Production

The company has announced its intention to increase turbine production, a move that aligns with its strategy to strengthen its position in the power transmission sector. This expansion is expected to cater to growing demand in both domestic and international markets.

Focus on Defense and Export Engineering Orders

Triveni Engineering is also setting its sights on expanding its defense and export engineering order book. This diversification strategy could potentially open up new revenue streams and reduce dependence on any single market segment.

Business Segment Separation

In a significant strategic move, Triveni Engineering plans to accelerate value creation through the separation of its distillery, co-generation, and sugar segments by FY26. This restructuring is aimed at enhancing operational efficiency and potentially unlocking shareholder value.

Financial Performance

For Q1 FY26, Triveni Engineering reported:

The company's net turnover increased by 23%, supported by a 53% increase in alcohol dispatches and a 14% increase in consolidated sugar dispatches, along with improved sugar realizations.

Segment-wise Performance

Sugar Business

• Sugar realization improved to ₹ 40,421.00/MT, a 4% increase over the corresponding previous period.
• Consolidated sugar dispatches increased by 13.6% to 258,196 tonnes.

Alcohol Business

• Alcohol production for the quarter stood at 6.5 crore litres, a 19% increase year-over-year.
• Alcohol sales volume increased by 53% to 6.2 crore litres.

Engineering Business

• The Power Transmission Business (PTB) reported a 15% increase in order booking.
• The closing order book for PTB stood at ₹ 423.00 crore, a 38% improvement over the corresponding previous period.
• The total engineering business order book (including PTB) reached ₹ 1,975.00 crore, up 32% compared to the same quarter last year.

Management Commentary

Mr. Dhruv M. Sawhney, Chairman and Managing Director of Triveni Engineering & Industries Ltd., commented on the company's performance and outlook: "As expected, the performance during the quarter was muted. During this period, the profitability of sugar gets affected as the off-season costs are expensed out and further, in Distillery, the margins of FCI-rice, which formed 27% of total alcohol sales, were relatively lower."

He added, "Looking ahead, I remain cautiously optimistic. Early monsoon trends have been encouraging and bode well for the agricultural sector, particularly for the sugarcane crop in UP. Our continuous field surveys indicate a healthy crop with minimal pest or disease incidence."

Triveni Engineering's strategic initiatives, including production expansion and business restructuring, are poised to position the company for long-term growth and value creation in the coming years.