Buy Triveni Turbine; target of Rs 800 Prabhudas Lilladher

Prabhudas Lilladher's research report on Triveni Turbine

Triveni Turbine (TRIV) reported revenue growth of 16.6% YoY in Q3FY25. EBITDA margin improved by 232bps YoY to 21.7%. Despite subdued domestic order booking during the quarter, enquiry generation remained strong across key industrial segments such as steel, cement, and oil & gas. Encouraged by an uptick in domestic order finalization in Q3, the management expects improved order booking in Q4FY25. TRIV’s strategic entry into CO2-based energy storage systems marks a significant growth opportunity, positioning it at the forefront of emerging energy transition technologies. This initiative, coupled with its planned annual capex of Rs1.2-1.5bn to enhance and modularize its capabilities, including investments in R&D, will drive the next phase of growth. Internationally, TRIV continues to witness robust demand from the renewable energy sector, particularly in waste-to-heat energy, geothermal, small modular reactors, and biomass-based power generation. Additionally, its strong order book for API and IPG turbines provides visibility for sustained growth in the products segment. The company is also leveraging its expanding aftermarket offerings—including spare parts, services, and refurbishments—to strengthen its presence in the rotating equipment space.

Outlook

We believe TRIV’s prospects continue to remain strong due to 1) healthy enquiry pipeline across markets, 2) growing share of higher margin exports & aftermarket sales, 3) strong traction in both industrial & API drive turbines, and 4) robust order book with strong inflows across businesses. The stock is trading at a P/E of 39.6x/30.0x on FY26/27E EPS. We maintain our ‘Buy’ rating with a TP of Rs800 (same as earlier), valuing the stock at a P/E of 43x Sep-26E (same as earlier).