Trident Ltd delivered impressive financial results for Q2FY27, with consolidated net profit attributable to owners surging 93.1% YoY to ₹175.58 crore from ₹90.93 crore in the corresponding period last year. According to the company's unaudited financial results, consolidated EBITDA increased significantly by 46.5% to ₹314 crore from ₹214 crore, with EBITDA margin expanding by 600 basis points YoY to 18% from 12% in Q2FY26. However, revenue from operations declined 3.78% YoY to ₹1,719.48 crore compared with ₹1,787.17 crore in Q2FY26. The profitability improvement was driven by better operational efficiency and consolidated total expenses falling 10.2% YoY to ₹1,509.73 crore from ₹1,680.68 crore in Q2FY26. On a sequential basis, profit attributable to owners increased 11.1% from ₹158.09 crore in Q1FY27.
The company's yarn segment emerged as the strongest performer with revenue advancing 10.32% YoY to ₹1,018.96 crore from ₹923.64 crore year-on-year, while segment result surged to ₹191.19 crore from ₹47.24 crore. The bedsheets segment also showed robust growth with revenue rising to ₹311.36 crore from ₹261.22 crore and growth of 19.2% YoY, up from the previously reported ₹311 crore. However, the towel segment faced challenges with revenue declining 21.11% YoY to ₹570.75 crore from ₹723.46 crore and segment result falling to ₹32.58 crore from ₹78.23 crore. The paper and chemicals segment recorded revenue of ₹287.9 crore, up 16.6% YoY from ₹246.9 crore, with segment result declining to ₹34.27 crore from ₹43.05 crore.
Textile and paper manufacturer Trident Ltd has approved a ₹4,650 crore capacity expansion and modernisation plan across its yarn, sheeting, paper and renewable energy businesses. According to reports from CNBC TV18, the expansion includes setting up a new yarn manufacturing facility at Dhar in Madhya Pradesh with a capacity of 1,99,680 spindles, adding 99,840 spindles at its existing Budhni facility and modernising older machinery. The projects are expected to be completed in phases between December 2027 and September 2029. The expansion plan also includes adding 336 looms to the sheeting business, increasing paper manufacturing capacity by 28 tonnes per day (TPD), and setting up a 60-megawatt hybrid renewable energy project comprising 60 MW of wind power and 20 MW of solar power. The entire capex will be financed through internal accruals and debt.
At the Budhni facility, Trident will modernise 48,000 old spindles into 70,176 new spindles for finer counts and replace 960 old rotors with 2,400 new rotors. The company has already acquired 179.2 acres of leasehold land at Dhar for the new facility at a cost of approximately ₹106.09 crore. In the sheeting business, the company will invest ₹1,018 crore to add 336 new looms, with the project expected to be completed by January 31, 2028. The paper expansion will require ₹296 crore to increase capacity by 28 TPD, taking the proposed capacity to 507 TPD from 479 TPD, with completion targeted by March 31, 2028. Additionally, Trident will invest ₹654 crore in a hybrid renewable energy project comprising 60 MW of wind power and 20 MW of solar power, with completion expected by October 31, 2028.
Shares of Trident surged as much as 13.4% to ₹25.18 following the strong quarterly earnings announcement and expansion plan unveiling, with the stock trading 5.95% higher at ₹23.45 at around 1:05 PM on Tuesday. The stock opened at ₹23.11 and surged 13.4% to hit an intra-day high of ₹25.18 from the previous closing of ₹22.20, though it pared most of its early gains during the session. According to CNBC TV18, the capex plan is nearly one-third of the company's overall market capitalisation of ₹12,500 crore as of November 3, 2026. Domestic brokerage Motilal Oswal Financial Services has reiterated its 'Neutral' rating on Trident and revised its target price to ₹24, valuing the stock at 12 times its estimated FY28 enterprise value to EBITDA. The brokerage noted that Trident's home textile portfolio declined due to a dip in bed linen as well as bath linen, while the yarn and paper businesses remained flat, expecting the home textile portfolio to clock a 5.6% CAGR over FY26-28.
