Triveni Turbine Ltd

Financial Performance

• Revenue from operations: ₹4.43 billion, up 19.2% YoY
• Domestic sales: ₹2.4 billion, up 27.4% YoY
• Exports: ₹2.03 billion; export share 48.8% of revenue (vs 49.3% LY)
• EBITDA: ₹797 million; margin 18% (vs 25.8% LY)
• Profit before tax: ₹697 million; margin 15.7% (vs 23.5% LY)
• Quarter order booking: ₹5.68 billion; up 6.1% YoY; led by exports/aftermarket
• Closing order book: ₹21.8 billion as of 30 Jun 2026; up 5.1% YoY; export OB 57%
• Aftermarket closing orders: ₹6.24 billion; up 115% YoY; 29% of closing OB
• Balance sheet: receivables down; negative working capital; cash balance up

Operating / Segment Update

• Export order booking grew 53.4% YoY; accounted for 68% of quarterly bookings
• Domestic and product order booking slowed; down 35.4% and 11.6% YoY respectively
• Enquiries in international markets improved; US/SE Asia showing momentum; domestic weakness persists
• US subsidiary: healthy enquiries; focus on service/product capabilities; build footprint in the Americas
• R&D focus: ORC developments; expanding heat pumps and MVR offerings; geothermal combo potential
• CO2 BESS pilot in Europe progressing; exclusivity terms with Energy Dome not disclosed
• Data-centre opportunity: traction visible; confluence of conventional/combined-cycle options

Balance Sheet and Cash Flow

• Receivables reduced; negative working capital motif re-emerging; cash balance higher
• No explicit debt restatement provided in the quarter

Projects and Capex

• Heavy R&D focus; ORC and geothermal integration; heat pumps/MVR advancing
• US entity: path to break-even targeted in FY2028; Q1 loss expected due to lack of orders
• Product-and-solution approach: combining multiple offerings to deliver better payback

Outlook and Guidance

• Full-year FY2027: revenue and bottom-line growth expected; margins to recover in H2
• Management cites potential to maintain PBT margin >20% in medium to long-term

Q&A Takeaways

• NTPC CO2 project: ~₹175 crore execution, ~40% in Q1; freight-led delays shift some to Q2/Q3
• Export freight volatility caused margin pressure; domestic orders compressed; overall mix improving
• Domestic enquiry softness is c. 6–12 months gestation; bounce-back expected in coming quarters
• US data-centre opportunity: enquiries >12 months to orders; product-first approach; reforms later
• Bought-out components (BOP): scope 30–70% per order; price escalations absorbed if volatility persists
• ORC/Heat-pump: progress gradual; customers seek validated payback; pipeline expanding

Overview

• Standalone BRSR for FY2025-26; TTL's core is steam turbines manufacturing and servicing.
• 90% of turnover from turbines and parts; 10% from servicing.
• Exports accounted for 53% of turnover; operations in 25 states and 83 countries.
• SGS India provided reasonable assurance on BRSR core indicators.

Key ESG Risks & Opportunities

• Energy efficiency opportunity; turbines enable renewable fuels like bagasse and waste heat.
• Renewable energy share 6,098.93 GJ; target 20% by 2035; 7.3% achieved this year.
• Health & safety risk; Behaviour Based Safety program; training; LTIFR zero; no fatalities this year.
• Supply chain resilience; 70% inputs from sustainable vendors; ESG onboarding and code of conduct.

Governance & Policy Highlights

• Board oversees BRSR with a dedicated sustainability committee.
• Policies include Whistle Blower, Code of Conduct, Human Rights, HSE, and BRSR.
• Independent assurance by SGS India on BRSR core indicators.
• Certifications include ISO 14001, ISO 45001, AS 9100D, API Q1; IGBC certified.
• No penalties or non-compliances disclosed.

Social Responsibility & Workforce

• Total employees 942; 94.37% male, 5.63% female.
• Permanent turnover 7.69% this year; 6.33% prior year.
• Welfare spend on well-being 0.35% of revenue.
• LTIFR zero; no fatalities; prior year injuries were 3.
• Board female representation 22.22%; KMP female 0%.
• CSR beneficiaries: education 11,749; healthcare 64,884; rural football 600.
• ESG awareness training 83%; health & safety 74%; skill upgradation 98%.

Environmental Performance

• Total energy 83,326 GJ; renewables 6,098.93 GJ; non-renewables 77,227.18 GJ.
• Scope 1 emissions 5,177.03 tCO2e; Scope 2 3,169.15 tCO2e; total 8,346.18 tCO2e.
• Energy/turnover intensity 0.0000004 tCO2e per turnover; output intensity 57.17.
• Water withdrawal 85,611.54 kl; water intensity 0.000004 per turnover; ZLD at Bengaluru plants.
• Total waste 522.33 MT; recycled 498.73 MT; hazardous waste 43.30 MT; non-hazardous 477.91 MT.
• ZLD at Peenya and Sompura; ISO 14001/45001; IGBC; EPR compliant.
• Zero Waste to Landfill target by 2035; 20% renewable energy by 2035 target.

Stakeholder Engagement & Complaints

• Stakeholders: customers, suppliers, regulators, employees, investors, communities; ongoing engagement.
• Customer complaints 52 filed; 2 pending; 1 shareholder complaint; others nil.
• Grievance mechanisms in place; whistleblower framework and governance channels.
• 80% of suppliers by value assessed under Sustainable Sourcing Policy.

Other Notable Metrics

• Input material from sustainable sources: 70% of inputs.
• Direct MSME procurement: 54.83%; domestic Indian sourcing 88.1%.
• No product recalls; data privacy incidents: nil; cyber security policy in place.
• Product information provided beyond regulatory requirements; ongoing customer satisfaction tracking (NPS).

Financial performance

• FY26 revenue ₹21,811m.
• EBITDA ₹5,268m.
• EBITDA margin 24.2%.
• PAT ₹3,494m.

Orders and backlog

• Total order booking ₹23,256m.
• Closing order book ₹20,539m.
• Export orders ₹10,540m.
• Export share of orders 52%.

Dividends and AGM

• Total dividend ₹4.25 per share.
• AGM on 9 Sep 2026 via VC/OAVM.

Meeting Details

• Date: August 11, 2026.
• Time: not disclosed.
• Type/Mode: audio conference call (virtual group).
• Event/Organizer: Q1 FY27 Investors/Analysts Conference Call by Triveni Turbine Limited.
• Purpose: discuss standalone and consolidated unaudited results for Q1 FY27.
• Recording: audio recording uploaded on the company website.

Participants

• Key company participants: management roles; specific names not provided.

Business overview

• Global leader in industrial steam turbines up to 100 MW; offers lifecycle and aftermarket services.
• Refurbishment solutions for rotating equipment up to 1,000 MW via TTL Refurb.
• AI-driven predictive maintenance and digitalized hydro testing deployed; localized services globally.
• Global footprint across 80+ countries with two Bengaluru facilities and robust aftermarket.

Operational highlights

• Revenue from operations ₹4.43 billion; up 19.2% YoY.
• Order booking ₹5.68 billion, up 6.1% YoY.
• Closing order book ₹21.80 billion, up 5.1% YoY.
• Aftermarket order book ₹6.24 billion, more than doubling.
• Exports accounted for 68% of total order booking; aftermarket 39%.
• Diversified demand across Southeast Asia, Africa, and North America.
• Margins pressured by mix, price escalation, and delivery phasing; recovery expected in FY27.
• Supply chain strengthening through AI predictive maintenance and localized services.

Financial performance

• PBT CAGR 31% per annum; FY22–FY26 historical growth.
• Management expects margin recovery in latter half of FY27.

Strategic priorities & outlook

• Energy transition and sustainability central to growth strategy.
• Customer-centric approach and ongoing product innovation.
• Expansion into new markets; strengthening global footprint.
• Refurbishment growth complements product and aftermarket solutions.
• Outlook: margin recovery expected in FY27's latter half; diversified demand supports growth.

Risks & mitigation

• Geopolitical uncertainties in West Asia; mitigated by geographic and segment diversification.
• Supply chain risks addressed via AI-driven predictive maintenance and localized services.

Governance & leadership

• Board of 9 members; 5 independent; 2 women directors; 2 executive directors.
• Audit, Nomination & Remuneration, Stakeholders' Relationship, CSR, and Risk Management committees.
• Green manufacturing facilities certified AS 9100, ISO 9001, ISO 14001, ISO 45001; 1,300 kW rooftop solar.

Q1 FY27 Highlights

• Revenue from operations rose 19.2% YoY to ₹4,427 million.
• EBITDA ₹797 million; margin 18.0% vs 25.8% in Q1 FY26.
• PBT ₹697 million, margin 15.7% vs 23.5% in Q1 FY26.
• PAT ₹511 million, margin 11.5%, vs 17.3% in Q1 FY26.
• Total order booking for quarter ₹5.68 billion, up 6.1% YoY.
• Export orders ₹3.84 billion, up 53.4% YoY, 68% of total.
• Aftermarket orders ₹2.24 billion, up 53.4% YoY, 39% of total.
• Closing order book ₹21.80 billion, up 5.1% YoY.
• Exports accounted for 57% of closing order book.
• Domestic revenue up 27.4% YoY to ₹2.40 billion.
• Export revenue up 10.8% YoY to ₹2.03 billion.
• Exports share of revenue 45.8% vs 49.3% prior.
• Outlook: H2 FY27 revenue and profit positive.
• International traction strengthening; diversified across geographies and segments.
• West Asia disruptions may cause near-term volatility.
• Backlog remains robust and on track for H2 FY27.

Financial results

• Board approved unaudited standalone and consolidated results for quarter ended June 30, 2026.
• Standalone Q1 FY27: revenue from operations ₹3,968m; PAT ₹505m; basic EPS ₹1.59.
• Consolidated Q1 FY27: revenue ₹4,427m; PAT ₹511m; total income ₹4,711m; EPS ₹1.60.
• Total comprehensive income: standalone ₹574m; consolidated ₹599m.
• One-time ₹57m charge towards remeasurement of employee benefit obligations under Ind AS 19.

Corporate guarantees

• Corporate guarantee to Triveni Turbines FZCO up to USD 3m for working capital (non-fund based).
• Corporate guarantee to Triveni Turbines Africa Pty Limited up to USD 9m for working capital (non-fund based).
• Bank may claim guaranteed amount from the Company if subsidiary fails to honour.