Trident Q1 FY26 Results (NSE: TRIDENT)
Signal: Margin pressure
The read
Revenue flat, OPM compressed 300bps YoY due to higher raw material costs; profit growth driven by lower depreciation and finance costs, not operational improvement; Yarn performance strong, Towel weak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,786.83 Cr | 4.68% | 9.45% |
| EBIT | ₹216.02 Cr | 15.06% | |
| Net profit | ₹158.09 Cr | 12.95% | |
| EPS | ₹0.31 | 14.81% | |
| EBIT margin | 12.1% |
P&L walk
Revenue flat (+4.7% YoY), OPM compressed 300bps to 12.1% as raw material cost rose 130bps to 50.6% of revenue; other income fell 18% YoY, but share of associate profit contributed modestly; net profit grew 12.95% YoY, aided by lower depreciation and finance cost absorption.
Segments
Yarn segment leads with ₹1,458.3 million segment result (+108% YoY), while Towel segment result drops 29% YoY to ₹336.7 million; Paper & chemicals also down 28% YoY; Bedsheets up 10% YoY.
Key positives
- Yarn segment result jumped 108% YoY to ₹1,458.3 million, driving overall profitability.
- Depreciation fell 24.4% YoY, reflecting lower asset base after divestiture of THTL.
- PAT grew 12.95% YoY despite flat revenue, aided by cost savings.
Key concerns
- Operating margin contracted 300bps YoY to 12.1%, as raw material cost % of revenue rose 130bps.
- Towel segment result declined 29% YoY, signalling weakness in a key product line.
- Other income fell 18.1% YoY, reducing a support for bottom line.
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