Trident Q1 FY27 Results (NSE: TRIDENT)
Signal: Growth reaccelerated
The read
PAT growth of 13% YoY was driven by improved yarn prices, disciplined cost management, and a sharp 24% fall in depreciation; however, EBITDA margin contracted 51bps YoY to 17.55% as input cost relief faded. Sequential recovery with +250bps margin expansion is encouraging but the YoY compression signals that the tailwind from lower raw material costs is no longer adding to margins. Net debt/EBITDA at 0.83x is low, balance sheet remains strong.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,803 Cr | 4.42% | 9.28% |
| EBIT | ₹246 Cr | 16.44% | |
| Net profit | ₹158 Cr | 12.96% | |
| EPS | ₹0.31 | 15.70% | |
| EBIT margin | 17.55% |
P&L walk
Revenue up 4.4% YoY to 1803 Cr, driven by improved yarn prices and volume; EBITDA grew 1.5% YoY but margin contracted 51bps to 17.55%, as input cost relief faded; depreciation dropped 24% YoY, aiding PBT and PAT growth; PBT rose 15% YoY, PAT +13% YoY; QoQ improvement was sharper on sequential margin recovery.
Segments
Yarn business revenue at 954 Cr, Home Textile at 941 Cr, and Paper & Chemicals at 297 Cr; all segments contributed positively but no PBIT split provided; yarn pricing improvement cited as a key driver.
Key positives
- PAT +13% YoY and +55% QoQ to 158 Cr on improved yarn prices and cost management
- EBITDA margin expanded 250bps QoQ to 17.55% – strong sequential recovery from Q4 low
- Net debt reduced to 1025 Cr with net debt/EBITDA at 0.83x, balance sheet healthy
- Finance cost down 4% YoY, depreciation down 24% YoY – lower fixed cost burden
Key concerns
- EBITDA margin contracted 51bps YoY to 17.55%, as raw material/input cost tailwind waned
- Revenue growth of only 4.4% YoY – volume growth modest
- Cash profit declined 1.9% YoY to 228 Cr, despite higher PAT – D&A savings not recurring
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