1. At a Glance – The Sugarcane With an MBA
If Indian conglomerates were Bollywood characters, Triveni Engineering would be the quiet guy in the corner who suddenly reveals he owns half the room. Market cap of ₹8,236 crore, CMP at ₹375, and a Q3 FY26 PAT jump of 82.7% YoY—all while sugar prices are doing their usual mood swings. Over the last three months, the stock is up ~5%, six months ~10%, and long-term investors are still bragging about the 5-year ~39% return.
But the real gossip? Distillery margins bounced back, sugar recoveries improved despite higher cane prices, and management quietly pushed a demerger of the Power Transmission business that screams “value unlocking” louder than a CNBC anchor. ROE sits at ~8%, ROCE ~8.7%, debt-to-equity a comfortable 0.25, and yes—there’s an interim dividend of ₹1.50/share. Not bad for a company that still smells like molasses.
2. Introduction – From Cyclical Trauma to Structural Stability
Sugar companies usually give investors emotional trauma. One year bumper profits, next year SAP hikes, exports banned, and suddenly your P&L looks like a heartbreak poem. Triveni, however, has spent the last decade methodically de-risking itself. Ethanol blending, IMIL/IMFL, gears, water EPC—basically anything that doesn’t depend on monsoon gods exclusively.
Q3 FY26 numbers confirm that strategy finally paying rent. Consolidated revenue (net of excise) grew 16.5% YoY, EBITDA jumped 73%, and PBT before exceptionals rose 118% YoY. Yes, there was a ₹22.4 crore exceptional charge due to new labour codes, but even after that, PAT growth stayed muscular.
Question for you: How many sugar companies do you know
that talk more about gearboxes and defence than about rainfall?
3. Business Model – WTF Do They Even Do?
Short answer: Everything that starts with sugar and ends with turbines.
- Sugar: Integrated mills producing refined, pharma-grade and crystal sugar. Institutional clients, FMCG giants, pharma—no roadside kirana dependency here.
- Distillery: Ethanol (grain + cane), ENA, RS, SDS, IMIL, IMFL. Ethanol alone forms ~92% of alcohol sales in Q3 FY26.
- Power Transmission: High-speed gears up to 70 MW, defence gearboxes, marine propulsion—exported to 80+ countries.
- Water Solutions: EPC + PPP + O&M in sewage, wastewater, ZLD. Treating 12,000+ MLD water daily.
- FMCG/Other: Packaged sugar brands and private labels (low margin, but branding flex).
This is not diversification for the sake of LinkedIn posts—it’s risk insurance.
4. Financials Overview – Numbers Don’t Lie, Cycles Do
Q3 FY26 vs Q3 FY25 (Consolidated, ₹ crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (Net) | 1,478 | 1,268 | 1,598 | 16.5% | -7.5% |
| EBITDA | 174.9 | 101.0 | 53.0 | 73.2% | 230% |
| PAT | 77.8 | 42.6 | 21.4 | 82.7% | 264% |
| EPS (₹) | 3.84 | 1.94 | 1.18 | 97.6% | 225% |
Annualised EPS (Q3 rule): Average of Q1, Q2, Q3 EPS × 4 ≈ ₹14–15 range (educational approximation).
Witty take: Sugar recovered, ethanol flexed,
