Shares of Triveni Engineering & Industries slumped 8% in intraday trade on Wednesday, July 30, hitting a 4-month low of ₹339 after the company reported a weak set of numbers for the June quarter, with consolidated net profit plunging 93.2% YoY to ₹2.1 crore, impacted by due to higher cost of production (COP) of sugar sold during the reporting quarter.
In the same period last year, the company had reported a net profit of ₹31 crore. The company stated that the profitability of the sugar business, despite higher volumes and realizations, was lower than last year due to higher production costs.
Revenue from the sugar business jumped 17% YoY to ₹1,169.6 crore in Q1FY26, and the average realization per MT improved marginally by 3.6% YoY to ₹40,421.
However, segment profit declined to ₹7.6 crore from ₹36.5 crore in Q1FY25, a drop of 80%, due to higher costs of sugar sold in Q1, which could not be offset by increased sugar realization prices. The cost of sugar sold during the quarter pertains to SS 2024-25 (produced till March 31, 2025) and was impacted by lower gross recovery, the company said in its filing.
Sugar prices had been on a declining trend from January 2025 but turned bullish from late January to February, sustaining gains through March-end with intermittent volatility. However, prices began to decline meaningfully from April onwards, hitting multi-month lows in early July.
Going forward, global sugar prices are expected to remain under pressure in the short term due to ample global supply and favorable weather conditions in key sugar-producing regions like Brazil and India.
As per the latest report from S&P Global, the Global Sugar Balance Sheet for 2024-25 points to a deficit of 4.36 million tonnes. For the 2025-26 season, the outlook remains largely balanced, with a surplus of 2.89 million tonnes owing to better crops in India, Thailand, and Brazil.
Meanwhile, profitability in the Power Transmission Business was adversely affected by lower turnover, expenses incurred towards maintaining higher staffing levels to meet increased activities, and higher depreciation on capitalization related to the ongoing capex program.
However, the company reported a 15% increase in order bookings and a record closing order book of ₹423 crore, up 38% over the corresponding previous period. The closing order book for the engineering business (including PTB) stood at ₹1,975 crore, up 32% compared to the same quarter last year.
Stock now down 27% from recent highs
The stock has been on a declining trend since early June, which was further accelerated in today’s trade, leading it to correct 27% from its recent high of ₹468 recorded in late May. From its all-time high of ₹536, made in December 2024, the stock is now trading 36% lower.
However, looking at the long term, the stock is still up by 1,128% from its 2020 lows and has finished the last four calendar years in the green.
Triveni is one of the largest integrated sugar producers in the country, with eight sugar units located in Uttar Pradesh, of which seven are FSSC 22000 certified. Two units (Chandanpur & Khatauli) have received Bonsucro certification. Bonsucro certification is a globally recognized standard for sustainable sugarcane production, as per the company’s Q1FY26 earnings report.
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