Accumulate Triveni Turbine; target of Rs 609: Prabhudas Lilladher

Prabhudas Lilladher's research report on Triveni Turbine

We revise our FY27/FY28 EPS estimates by -7.4%/-8.3% accounting for delay in dispatches and slower order conversion amid tariff-related uncertainties. Triveni Turbine (TRIV) reported a muted quarter with revenue remaining largely flat YoY, while EBITDA margin improved marginally by 41bps YoY to 22.6%. In Q2FY26 Domestic revenue declined ~20% YoY due to lower order backlog from the previous year while order inflow surged by 51.7% YoY supported by strong traction across steel, cement, infrastructure, API, and utility turbine segments. Export revenue increased ~27% YoY, aided by strong demand traction from Europe and the Middle East, though order inflows fell ~19% YoY amid tariffrelated delays and a subdued US market. The refurbishment segment continues to gain traction in the US and is expected to support near-term growth.

Outlook

The stock is trading at a P/E of 36.1x/32.0x on FY27/28E EPS. We roll forward to Sep’27E and downgrade our rating from ‘BUY’ to “Accumulate’ given slow order finalization, delays in dispatches and softer exports are likely to weigh on performance. We value the business at a PE of 38x Sep’27E (40x Mar’27E earlier) arriving at a TP of Rs609 (Rs650 earlier). Downgrade to “Accumulate”