Summary
Triveni Turbine Limited - Q3 FY 2026 Earnings Call Summary Wednesday, February 4, 2026, 4:00 PM
Event Participants
Executives 7 Amit Shah (Investor Relations), Lalit Agarwal (CFO), Manikantan Rajendran (CMO), Nikhil Sawhney (Vice Chairman and MD), S.N. Prasad (CEO), Sachin Parab (COO), Shreya Sharma (Head of IR)
Analysts 10 Amit Anwani, Amit Mahawar, Balasubramanian A, Chirag Muchhala, Deepesh Agarwal, Harsh Tewaney, Harshit Patel, Jai Chauhan, Mohit Surana, Prolin Nandu
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹624 crores | +24% YoY; highest ever quarterly turnover driven by Q3 catch-up dispatches. |
| EBITDA | ₹154 crores | +16.9% YoY; margin impacted by lower aftermarket dispatches and NTPC project billing. |
| PAT | ₹91.7 crores | -1% YoY; impacted by a non-recurring wage code exceptional charge of ₹15.7 crores. |
| Order Inflow | ₹391 crores | -26% YoY; decline due to ~₹200 crores in orders deferred due to non-receipt of advances. |
| Order Book | ₹2,300+ crores | Flat YoY; management expects Q4 to exceed previous averages and make up the shortfall. |
| US Subsidiary Loss | ₹21.7 crores | 9M FY26 loss; reflects continued overhead absorption during the investment phase. |
Geographic & Segment Commentary
- Domestic Market: Robust demand across steel, cement, sugar, and distilleries. Management anticipates double-digit order growth in Q4 FY26, supported by an increasing enquiry pipeline for drive turbines (boiler feed-water pumps).
- International Market: Currently 55% of the order mix. Softness in Southeast Asia and Middle East (geopolitical) and USA (tariffs) led to slower finalizations, but enquiry books remain at multi-hundred million dollar levels.
- Aftermarket & Refurbishment: Strategic focus on utility-scale turbines and non-steam rotating equipment (gas, geothermal). South African subsidiary (TSE) is being unified to expand scope into Sub-Saharan Africa.
Company-Specific & Strategic Commentary
- Product Diversification: Received the first order for CO2-based heat pumps with an enquiry book exceeding 100 units. MVR (Mechanical Vapor Recompression) has 7-8 orders under execution for FY27 delivery.
- US Market Recovery: US duty on steam turbines has reverted to 18% (down from 25%+). Management expects this to accelerate finalization of orders for data centers and geothermal plants.
- Energy Storage: Management is bullish on thermal energy storage (CO2 and non-CO2 based). The NTPC project (₹270-290 crores) serves as a landmark reference for future global utility bids.
- R&D Investment: 7% of the workforce is dedicated to R&D. Focus is shifting from being a “single product” company to a “solution-centric” provider for rotating equipment.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | Double-digit (FY26) | Back-ended growth expected in Q4 to offset slower Q1/Q2 dispatches. |
| PBT Margin | >20% (Long-term) | Confident in sustaining margins despite lumpiness from large projects like NTPC. |
| US Operations | Breakeven (FY27) | Expected as a launch platform for meaningful revenue contribution from FY28. |
| Growth Trajectory | Normalized (FY28) | Reverting to historical 20%+ growth rates once US and new products scale. |
Risks & Constraints
| Risk | Context |
|---|---|
| Order Lumpiness | As the company moves toward larger turbines (up to 125 MW) and API orders, quarterly inflows and revenue recognition become less predictable. |
| Execution Delays | Supply chain availability, raw material procurement for final assembly, and customer inspection schedules remain bottlenecks for catch-up dispatches. |
| Geopolitical/Trade | While US tariffs have eased, geopolitical tensions in the Middle East and Europe continue to delay final decision-making by international customers. |
Q&A Highlights
US Market & Data Centers
- Question: What is the scope for turbines in the US data center market? (Saif Sohrab Gujar)
- Answer: Gas turbine manufacturers are booked out for 5 years, leading developers to look at combined cycle solutions. Triveni is seeing enquiries for 20-70 MW ranges, typically 1 MW of steam turbine for every 3 MW of gas turbine (Nikhil Sawhney).
Order Inflow Shortfall
- Question: Why was Q3 order booking down 26%? (Harshit Patel)
- Answer: Approximately ₹200 crores in orders were ready but not booked because advances were not received by quarter-end. These are expected to flow into Q4 (Nikhil Sawhney).
Margin Impact of Large Orders
- Question: Will the low-margin NTPC order drag down FY27 performance? (Chirag Muchhala)
- Answer: 50% of NTPC revenue is recognized in FY26 and 50% in FY27. Despite this, 9M margins remain consistent YoY, and PBT is expected to stay above 20% (Nikhil Sawhney).
New Technology (MVR & Heat Pumps)
- Question: When will new products contribute meaningfully to the top line? (Deepesh Agarwal)
- Answer: Enquiries are robust, and first orders are in hand, but they will not be “meaningful” to turnover for at least two years. FY27 will be the primary year for commissioning initial units (S.N. Prasad).
Key Takeaway
Triveni Turbine delivered record quarterly revenue of ₹624 crores (+24% YoY) in Q3 FY26, successfully executing a catch-up in dispatches after a slow first half. While order inflows were optically lower at ₹391 crores due to timing of advances, the enquiry pipeline remains robust at multi-hundred million dollars, particularly in the US and for new applications like geothermal and data centers. The company is absorbing heavy investment costs in its US subsidiary and R&D for new products (Heat Pumps, MVR), which flattened 9M profitability, but management expects the US to break even in FY27. Strategic focus is shifting toward higher-capacity turbines (up to 125 MW) and energy storage solutions. Management maintains a positive outlook, anticipating a record Q4 to meet double-digit FY26 growth targets and a return to normalized 20%+ growth trajectories by FY28.
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