ICRA reaffirms ratings of Triveni Turbine at 'AA+/A1+' with 'stable' outlook

The agency has also affirmed the company's short-term rating at '[ICRA] A1+'.

ICRA stated that the ratings reaffirmation takes into account Triveni Turbine Limited?s (TTL) healthy order book of Rs. 2,179.6 crore as on June 30, 2026, a comfortable order intake and the continued favourable investment cycle in various end-user industries in India and overseas. The current order book lends strong medium-term revenue visibility.

ICRA notes that the company had reported comfortable revenue growth and healthy profitability in FY2026, though margins moderated by 144 basis points year-on-year (YoY) to 21.4% due to lower aftermarket contribution, and execution of strategic orders. Q1 FY2027 margins declined further to 11.6% due to delivery phasing of strategic orders, and deferment of export dispatches by customers amid logistics-related constraints.

Nevertheless, ICRA expects margins to recover in the remaining quarters of FY2027, supported by an increasing contribution from exports and aftermarket services, along with improved profitability from recently secured orders.

The revenue growth is expected to remain comfortable in the coming quarters because of a healthy enquiry pipeline from the key end-user segments both in the domestic and global markets.

Further, the ratings are supported by TTL?s healthy financial profile and debt coverage metrics along with expectations of the financial metrics remaining strong, going forward.

The ratings continue to factor in the company?s strong leadership position in steam turbines, its long track record in the industry, a strong after-sales service network and its technical and cost competitiveness.

The ratings are, however, constrained by the sensitivity of the order book to the capex cycle of the end-user industries, ompetition from various global players and the counterparty risks due to its exposure to capital-intensive sectors like sugar and cement that have moderate credit profiles.

Triveni Turbine (TTL) is an established industrial steam turbine and decentralised steam-based renewable turbine manufacturing company up to 100 MW in size.

The company reported a 20.78% decline in consolidated net profit to Rs 51.1 crore, despite a 19.23% increase in revenue from operations to Rs 442.7 crore in Q1 FY27 over Q1 FY26.

The scrip fell 2.14% to end at Rs 556.65 on the BSE today.

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