1. Opening Hook
If you thought the sugar sector’s only headache was calories, think again. Triveni’s management just delivered a 60-minute masterclass on how to juggle ethanol politics, sugar prices, and global gearbox demand—all while keeping a straight face. The quarter had everything: record SAP hikes, ethanol oversupply, and a “world tour” of Power Transmission optimism. Yet, despite these sugar rushes and engineering headwinds, Tarun Sawhney’s optimism could rival a Diwali ad campaign. Keep reading—because the ethanol math later on gets wild. 🍹
2. At a Glance
- Revenue up 18.4%:Management swears it’s not Excel sorcery—just 21% sugar and 8% engineering sweetness.
- PBT ₹32 crore vs ₹11.5 crore:The comeback kid moment—small base, big jump.
- PAT ₹23.5 crore vs ₹8.6 crore:Profit did a “triple shot” like a strong espresso.
- Gross Debt ₹753 crore:Company flexing at 6.4% interest cost—because cheap loans are the new diet.
- Sugar Revenue +22%:Sweet sales, but profit melted faster than ice in Noida heat.
- Stock Flat:Traders probably got distracted by ethanol memes.
3. Management’s Key Commentary
Tarun Sawhney:“Revenues rose 18% to ₹3,300 crore, driven by strong sugar and distillery performance.”(Translation: We finally got the sugar mix right without giving analysts a glucose spike.)
*“Gross debt rose to ₹753 crore, but cost of funds dropped to 6.4%.”(Translation: We owe more, but it hurts less—like EMI therapy.)
*“UP government raised SAP by ₹30; we urge a review of MSP.”(Translation: Sugarcane farmers got a raise; millers got hypertension.)
*“Ethanol constituted 92% of alcohol sales, with maize prices softening.”(Translation: The ethanol hangover’s mild, but we’ll still need aspirin for pricing.)
*“Global sugar surplus means exports are a challenge.”(Translation: Selling abroad now feels like trying to offload sand in Rajasthan.)
*“Power Transmission margins improved by 400 bps.”(Translation: Gearbox profits finally stopped grinding our gears. 😏)
*“We added 9 new OEM clients globally.”(Translation: Triveni’s gone global—just don’t ask about the Swiss acquisition bill.)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Change | Management Spin |
|---|---|---|---|
| Revenue | ₹3,300 Cr | +18% | Growth without “Excel inflation.” |
| Sugar Biz Revenue | +22% | Volume +14%, Price +4% | Sweet spot achieved. |
| Distillery Sales | ↓6% | Export fee blues, storage party later. | |
| Ethanol Share | 92% | 8% nostalgia for country liquor. | |
| Gross Debt | ₹753 Cr | +40% | “Leveraged optimism.” |
| Cost of Funds | 6.4% | -30bps | Debt that feels like a discount. |
| PTB PBIT Margin | 36% | +400bps | The gears are finally paying rent. |
Analysis:Sugar prices steady, ethanol demand stable, and Power Transmission spinning profits. But watch the SAP monster—it eats margins for breakfast.
5. Analyst Questions
Q:Are ethanol margins really ₹8/litre?A (Tarun):Try ₹11–₹12, my friend.(Translation: We’re squeezing profits like sugarcane.)
Q:Will capacity utilization drop?A:No. We’ll run 100%. Maize cuts yield, but margins are yummy.
Q:Is exporting sugar even viable now?A:“Challenging but possible”—if the government extends deadlines.(Translation: Pray for policy extensions.)
Q:Power Transmission slowdown?A:Seasonal, not structural. Wait till Q4—our gearboxes hibernate before roaring. ⚙️
6. Guidance & Outlook
Management expects FY26 to taste sweeter—literally. Sugar crushing is up across all 8 mills, with higher recovery and lower disease incidence (“red rot detox,” as Tarun calls it). Ethanol volumes to run at peak; maize softness helps margins.
On engineering, Triveni sees strong order inflows, 9
