At a Glance
Triveni Engineering, known for sugar, ethanol, and occasional investor headaches, posted a net profit of ₹2 Cr (-93% YoY) in Q1 FY26. Revenue stayed flat at ₹1,598 Cr, but OPM collapsed to 3.3%. To spice things up, there’s a ₹47–54 Cr excise claim and promoter holding continues its slow leak. The only thing sweeter than their ethanol is their dividend, but even that feels like a consolation candy.
1. Introduction
Sugar companies have a knack for turning market expectations into cavities, and Triveni did not disappoint. Once the darling of the ethanol blending push, Q1 FY26 results reveal a company struggling to keep its margins from melting faster than a popsicle in Delhi heat. Add legal liabilities and a P/E north of 38, and investors are left asking: is this a sugar rush or a crash?
2. Business Model (WTF Do They Even Do?)
- Segments: Sugar, Ethanol, Power co-generation, and Engineering services.
- Geography: Strategically placed in UP’s sugarcane heartland.
- Market Position: Top 3 in sugar, No.2 ethanol supplier.
Roast: They crush cane, distill ethanol, and engineer turbines—but engineering profits this quarter was clearly optional.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹1,598 Cr (+22.9% YoY)
- EBITDA: ₹53 Cr (-82.7% YoY)
- PAT: ₹2 Cr (-93% YoY)
- EPS: ₹0.20
Commentary: Volatility is the only constant—cost spikes and weak margins wiped out the bottom line.
4. Valuation
- P/E: 38.6x – absurd for a commodity business.
- P/B: 2.6x – premium on hope, not performance.
- Fair Value Range: ₹280 – ₹340.
Translation: Valuation is stickier than jaggery; downside risk if fundamentals don’t sweeten.
5. What’s Cooking – News, Triggers, Drama
- Excise liability of ₹47–54 Cr on denatured alcohol sales—contesting it.
- Ethanol blending program still a key tailwind, but pricing pressure persists.
- Promoter holding dropped 7.4% in 3 years—confidence slipping?
- Legal overhangs and restructuring plans in the pipeline.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 5,124 | 6,242 |
| Borrowings | 1,424 | 1,972 |
| Net Worth | 2,901 | 3,111 |
Auditor-Style Remark: Rising debt, liabilities piling up—looks less like engineering, more like juggling.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash | 397 | 100 | N/A |
| Investing Cash | 1,414 | -359 | N/A |
| Financing Cash | -1,762 | 263 | N/A |
Remark: Cash generation as erratic as sugarcane harvests—last year was barely positive.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 18% | 8% | 7.9% |
| ROCE | 18% | 15% | 8.6% |
| OPM | 11% | 12% | 7% |
| D/E | 0.5x | 0.6x | 0.6x |
Verdict: Ratios have gone from sexy to stressy in one season.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 5,617 | 5,220 | 5,689 |
| EBITDA | 618 | 627 | 476 |
| PAT | 395 | 238 | 209 |
Observation: Profits are shrinking even as sales grow—classic margin squeeze.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Balrampur Chini | 27.3 | 12.1% | 13.0% |
| Bannari Amman Sug. | 44.7 | 6.0% | 11.7% |
| Triveni Engg | 38.6 | 7.9% | 7.4% |
Comment: Higher P/E, lower margins—investors paying champagne prices for country liquor.
11. Miscellaneous – Shareholding
- Promoters: 60.98% (falling)
- FIIs: 6.2% (mild increase)
- DIIs: 8.9%
- Public: 23.9%
12. EduInvesting Verdict™
Triveni’s diversified play in sugar and ethanol should be sweet, but FY26 Q1 results reveal a company stuck in a bitter cycle—cost inflation, legal disputes, and declining profitability. Debt is creeping up, promoters are quietly trimming, and legal overhang adds uncertainty.
SWOT
- Strengths: Strong ethanol positioning, integrated operations.
- Weaknesses: Volatile margins, promoter stake falling.
- Opportunities: Government ethanol blending push.
- Threats: Legal liabilities, sugar price controls, cost spikes.
Final Word: The ethanol story keeps hope alive, but Q1 FY26 was a wake-up call. For now, the only thing really engineered here is investor patience.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Triveni Engineering, Q1 FY26 Results, Sugar Stocks, Ethanol, Engineering
