Trident Q2 FY27 Results (NSE: TRIDENT)
Signal: Revenue declined
The read
Q2FY27 marks a sharp earnings recovery from the ₹909.3 million consolidated PAT base despite revenue declining 3.8% to ₹17,194.8 million, driven by lower depreciation, controlled operating expenses and ₹51.6 million of associate profit; however, raw materials rose to 54.4% of revenue and the ₹46,500 million expansion materially increases execution and capital-allocation risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,719.48 Cr | -3.8% | -3.8% |
| Net profit | ₹175.58 Cr | +93.1% | |
| EPS | ₹0.34 | +88.9% |
P&L walk
Consolidated revenue declined 3.8% YoY to ₹17,194.8 million, while lower depreciation of ₹715.2 million, broadly controlled employee and other expenses, and ₹51.6 million of associate profit lifted PAT 93.1% to ₹1,755.8 million.
Segments
The consolidated segment table is present in the filing but its numerical rows are not available in the supplied text; standalone data shows the group-level earnings improvement is not purely parent-only, with consolidated PAT ₹49.5 million above standalone PAT due to associate and subsidiary effects.
Key positives
- Consolidated PAT rose 93.1% YoY to ₹1,755.8 million despite revenue declining 3.8%, supported by employee plus other expenses declining 2.8% and depreciation declining 13.7%.
- H1 operating cash flow was ₹8,000.8 million, up 24.3% YoY and substantially above H1 PAT of ₹3,336.7 million.
- The Board principally approved ₹46,500 million of capacity additions across yarn, sheeting, paper and renewable energy, including 99,840 new Budhni spindles and a 199,680-spindle Dhar facility.
- Associate profit contribution increased to ₹51.6 million from ₹14.0 million YoY, widening consolidated PAT above standalone PAT.
Key concerns
- Revenue declined 3.8% YoY to ₹17,194.8 million, and the filing provides no volume or realisation disclosure to establish a demand-led recovery.
- Raw-material consumption increased to 54.4% of revenue from 51.0% YoY, compressing calculated gross margin by 76bps to 52.9%.
- Finance costs rose 30.8% YoY to ₹325.3 million despite the earnings recovery.
- The proposed ₹46,500 million expansion is far larger than H1 capex of ₹998.3 million and creates a substantial future execution and funding requirement.
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