Triveni Engineering’s Strong Q4 Showing Driven by Sugar, Alcohol, and Power Transmission
Triveni Engineering’s Q4FY25 net profit rose around 15%, revenue grew 24.4%, and EBITDA increased about 23%, with steady 16% margins. In fiscal year 2025, the company’s revenue increased by 9% to ₹5,689.2 crore; however, net profit declined by almost 40% due to squeezed profit margins.
Overview: A Quarter of Strong Gains and Mixed Full-Year Signals
Triveni Engineering & Industries Ltd (TEIL) once again drew investor focus with an impressive fourth-quarter performance for fiscal year 2025. The company not only surpassed expectations on revenue but also demonstrated the strength of its diversified business approach. However, while the quarterly results reflect strong momentum, the overall full-year figures tell a more complex story, showing revenue growth alongside pressure on profit margins in key areas.
Q4FY25 Results: Double-Digit Growth Across Key Metrics
The fourth quarter of FY2025 delivered solid results for Triveni Engineering. Consolidated net profit rose by approximately 13.7% year-over-year, reaching ₹183 crore compared to ₹161 crore in Q4FY24. Some sources reported profits as high as ₹187.1 crore, marking a 16.2% increase, with slight differences due to rounding or accounting methods.
Revenue from operations for the quarter hit ₹1,925.3 crore, reflecting a significant 24.4% increase from ₹1,548 crore a year earlier. This growth was mainly driven by solid demand in the sugar, alcohol, and power transmission businesses. EBITDA saw a significant rise of 25.5%, reaching ₹308 crore, while operating margins edged up marginally to 16% compared to 15.9% in the prior year.
Segment-Wise Performance: Drivers and Challenges
Sugar Segment: Higher Prices Offset Lower Production
The sugar segment, a key part of Triveni’s business, saw turnover grow by 2.8%, largely due to better realization prices. However, profitability dropped by 12.8% because of increased production costs and lower recovery rates. The 2024-25 sugar season faced challenges with reduced sugarcane yields and recoveries in Uttar Pradesh, where crushing declined by about 3% and recovery rates fell by 90 basis points. Despite this, Triveni’s Khatauli unit set a national record for sugarcane crush and production, while the Deoband unit achieved its second-best performance ever.
Alcohol Segment: Increased Volume, Margin Pressure
Triveni’s alcohol business experienced a 15.7% rise in turnover, supported by the launch of a new multi-feed distillery at Rani Nangal, which allowed processing of diverse feedstocks. Still, profitability was hit due to higher volumes of lower-margin maize-based ethanol and operational disruptions caused by feedstock shortages.
Power Transmission: Strong Growth Momentum
The power transmission division stood out with a 26.8% jump in turnover, driven by effective project execution and healthy order inflows. This segment is benefiting from the company’s growing presence in India’s energy infrastructure market.
Water Business: Slight Decline
The water segment saw a moderate 4.9% decline in revenue, possibly due to weaker demand or project delays.
Full-Year FY25 Performance: Revenue Up, Profits Down
For the full fiscal year 2025, Triveni Engineering reported total consolidated revenue of ₹5,689.2 crore, reflecting a 9% rise compared to the prior year.
However, profitability faced significant setbacks. Profit before tax fell 38.7% to ₹324.2 crore, and profit after tax dropped 39.7% to ₹238.3 crore. This decline was largely due to margin pressures in sugar and alcohol operations, alongside higher expenses.
Earnings per share fell to ₹10.88 from ₹18.05 in FY24, reflecting these profit declines. EBITDA decreases by 22.5%, falling to ₹533.8 cr, and margins narrowed to 9.4% from 13.2% in the earlier period.
Dividend and Shareholder Value
In spite of the profit setbacks, Triveni Engineering’s board proposed a final dividend of ₹2.50 per share (250%) for FY25, up from ₹2.00 last year. This move reflects the company’s strong confidence in its cash flow position and future growth potential. The dividend record date is scheduled for September 1, 2025, pending approval from shareholders.
Market Reaction and Outlook
The market responded positively to the Q4 earnings, with Triveni Engineering shares rising as much as 10.4% to ₹468.20 on the BSE following the announcement. The stock has remained strong, reflecting optimism around the company’s diversified operations and favorable sugar price trends.
Management highlighted healthy sugar prices in FY25’s last quarter and expressed confidence in continued strength, supported by lower sugar stock levels year-over-year. Additionally, the company’s growing production of refined and pharmaceutical-grade sugar, which now makes up 73% of total output, positions it well for future profitability.
Looking ahead, Triveni Engineering plans to focus on improving performance in its sugar and alcohol segments through capacity expansions, feedstock diversification, and efficiency improvements to drive growth and margin recovery.
Conclusion: Resilience and Diversification Underpin Triveni’s Success
Although full-year profits were squeezed by margin pressures, the company’s solid quarterly performance and continued dividend payments reflect its resilience.
With core strengths in sugar, alcohol, and power transmission, along with a clear strategy for operational excellence and growth, Triveni Engineering is well-positioned to face upcoming challenges and seize new opportunities.
The image added is for representation purposes only
