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Trident shares rally 13% after Q2 net profit jumps 93% to Rs 175 crore; firm plans Rs 4,650 crore capex

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In short

The company's profitability surged on the back of lower sequential expenses and a 600-basis-point margin expansion, even as top-line revenue slipped 4%. Robust demand in the yarn and bedsheet businesses countered profit declines in towels, paper, and chemicals. Looking ahead, management is deploying substantial capital to upgrade existing textile operations and introduce an 80-megawatt hybrid wind and solar energy project.

Key points

  • Margin improvements were heavily aided by lower operating costs despite falling quarterly…: Margin improvements were heavily aided by lower operating costs despite falling quarterly revenues.
  • Growth in the yarn and bedsheet categories successfully countered downturns in the towel…: Growth in the yarn and bedsheet categories successfully countered downturns in the towel segment.
  • The extensive modernization program introduces 336 additional sheeting looms and hybrid r…: The extensive modernization program introduces 336 additional sheeting looms and hybrid renewable power assets.

Sources checked by our analysis pipeline: 1

The company’s revenue from operations came in at Rs 1,719.50 crore for the quarter under review, down 4% from Rs 1,787 crore reported in the corresponding quarter of the previous financial year.

Trident's EBITDA, or earnings before interest, tax, depreciation and amortisation, climbed 46.5% to Rs 313.7 crore in Q2FY27 from Rs 214.1 crore in the corresponding quarter last year. The EBITDA margin also improved to 18% from 12%, registering an expansion of 600 basis points year-on-year.

On a sequential basis, profit attributable to owners grew 11.1% from Rs 158.09 crore in the June quarter. However, revenue from operations declined 3.8% quarter-on-quarter to Rs 1,719.50 crore from Rs 1,786.83 crore in Q1FY27. Total expenses fell 4.9% to Rs 1,509.73 crore from Rs 1,587.20 crore over the same period.

Among its business segments, Trident's yarn division reported revenue of Rs 1,019 crore in Q2FY27, up from Rs 923.64 crore in the year-ago quarter. Its segment result surged to Rs 191.19 crore from Rs 47.24 crore. The towel segment, however, saw revenue decline to Rs 570.75 crore from Rs 723.46 crore, while…

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