01 — At a Glance
Towel Master Doing Towel Things. Nothing Fancy.
- 52-Week High / Low₹34.6 / ₹22.6
- 9M FY26 Revenue₹5,125 Cr
- 9M FY26 PAT₹275 Cr
- Q3 FY26 Revenue₹1,595 Mn (₹159.5 Cr)
- Q3 FY26 EPS₹0.09
- Book Value₹9.06
- Price to Book2.56x
- Dividend Yield2.17%
- Debt / Equity0.35x
- Return (6 Months)-19.5%
The Short Version: Trident is the world’s largest wheat-straw-based paper manufacturer + India’s No. 1 towel maker + a yarn spinning machine + exporting 53% of its sales. Q3 saw margins compress to 10% EBITDA (from 13.6% last year) thanks to US tariffs, a dying CFO (CFO Rahul Roongta resigned Jan 2, 2026), and demand softening. The stock is down 19.5% in 6 months. P/E of 28.8x screams “fully valued” while ROCE of 9.48% whispers “mediocre.” But hey, dividends of 2.17% still beat FDs if you squint hard enough.
02 — Introduction
Made of Cotton, Running on Dreams (and Tariffs)
Trident Limited is India’s towel champion. Founded in 1990 in Punjab, it grew from a yarn-spinner to a global home textile exporter doing business with Target, Walmart, IKEA, Amazon. It makes bath towels, bed sheets, cotton yarn, wheat-straw paper, and industrial sulphuric acid — a diversification so random that it makes you wonder if the promoter’s kids threw darts at a board.
What started as commodity business evolved into one of India’s most integrated textile manufacturers. 17,500+ employees. 50-year-old factories running at high capacity. Exported 53% of revenue in Q3 (mostly to the US). And a P/E of 28.8x that makes zero sense when the company is literally getting squashed by US tariffs on Indian textiles.
In December 2025, the US imposed 50% secondary tariffs on Indian goods. Trident’s US business (40% of Q3 revenue) is now 50% more expensive overnight. CARE Ratings expects Indian textile exports to decline 9-10% in CY2026 if tariffs hold. Trident’s management called it “macro headwinds.” Investors called it “red flag, sell at open.”
So here we are: A 35-year-old textile company trying to sell increasingly expensive towels to Americans who suddenly discovered tariffs exist. Q3 results came in soft. Margins collapsed. And the CFO left. Buckle up.
Concall Intel (Feb 2026): Management blamed US tariffs for margin compression, announced cost optimization initiatives, and maintained dividend payout guidance. Translation: We’re getting hit hard, we’ll cut some costs, but shareholders get their dividend no matter what.
03 — Business Model: WTF Do They Even Do?
Five Unrelated Businesses Held Together By Hope and Punjab Water
Trident operates five distinct business verticals that have absolutely nothing to do with each other:
1. Towels (57% of revenue): Bath towels, hand towels, beach towels. They call it “home textiles.” 664 looms producing 90,000 MTPA terry towels. Most go to the US. Now 50% more expensive because Americans said so.
2. Bed Sheets (15% of revenue): 500+ looms producing 63 million meters per year. Premium, luxury, organic. Sold under the LUXEHOME brand. Capacity utilization is a tragic 54% because they recently added 500 looms and demand hasn’t caught up.
3. Cotton Yarn (28% of revenue): Combed yarn, slub yarn, open-end yarn. Used by other manufacturers. 50% is captively consumed in their own towel/sheet plants, which gives them some cost advantage. Capacity utilization: 85%. Not bad.
4. Paper (14% of revenue): World’s largest wheat-straw-based paper manufacturer. Branded copier paper, printing paper, Bible paper. 175,000 MTPA installed capacity. Highest OPM (operating margin) among listed Indian paper companies at 15.15% in Q3. Only redeeming business.
5. Chemicals (tiny): Industrial and battery-grade sulphuric acid. Industrial use. Boring. Basically a byproduct.
The integration is real: 50% self-consumption of yarn in textiles gives them some pricing power. Captive power (40.9 MW solar + 67.6 MW cogen) covers 52.5% of electricity needs. But here’s the catch: 56% of revenue is exports, and 40% of that is US-bound at today’s tariff levels. One policy change, and the whole castle wobbles.
Export Brain Drain: Trident was the second-largest home textile exporter from India. Key customers: Walmart, Target, IKEA, Amazon, Costco. But with 50% US tariffs + 25% secondary tariffs + shipping costs + 2-month delivery lag, some orders are shifting to Vietnam, Cambodia, Bangladesh. Can’t blame customers for basic economics.
💬 Real question: Would you still buy Trident stock if US tariffs stayed at 50% for the next 2 years? Drop your honest take in the comments.
04 — Financials Overview
Q3 FY26: The Numbers Get Spicy
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