Markets India

Trident shares surged 13% after reporting a 93.1% year-on-year rise in Q2 FY27 net profit to Rs 175.50 crore, alongside a Rs 4,650-crore capacity expansion plan. The company also revealed plans to add 99,840 spindles at its Budhni facility and build a new yarn plant in Dhar.

Trident Shares Jump 13% on 93% Profit Surge, Announces Rs 4,650 Crore Expansion

Trident's Q2 FY27 net profit rose 93.1% year-on-year to Rs 175.50 crore, driven by improved operational efficiency and pricing power, according to ET Markets. Revenue from operations declined 4% to Rs 1,719.50 crore, while EBITDA jumped 46.5% to Rs 313.7 crore, with margins expanding 600 basis points to 18%. The company's capex plan includes Rs 4,650 crore for modernisation, with the Dhar yarn facility featuring 1,99,680 spindles and 179.2 acres of land acquired for Rs 106.09 crore. The yarn segment saw a 10.4% revenue rise to Rs 1,019 crore, with results surging 304% to Rs 191.19 crore. However, the towel segment faced revenue declines, raising concerns about top-line growth. The expansion aims to boost production capacity and long-term competitiveness in the textile sector.

Trident's board has granted in-principle approval for the Rs 4,650-crore expansion, with plans to establish the new Dhar yarn facility and increase paper-manufacturing capacity by 28 tonnes per day.

Trident's strong profit growth and expansion plans signal strategic investment in capacity, but revenue declines and segment-specific underperformance highlight risks to long-term competitiveness.

Topics: Textile Industry, Financial Performance, Corporate Expansion, EBITDA Growth, Yarn Manufacturing, India Markets, Capital Expenditure, Operational Efficiency

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Source: ET Markets