Key takeaways
- Trident reported consolidated net profit of ₹175.58 crore in Q2 FY27, up 93.1% year-on-year.
- Revenue from operations declined 3.8% to ₹1,719.48 crore.
- EBITDA increased 46.5% to ₹313.7 crore, while the EBITDA margin expanded to 18%.
- The yarn, bedsheet, and paper businesses recorded revenue growth, but the towel segment weakened.
- The board approved an in-principle ₹4,650 crore capacity expansion and modernisation programme.
- The investment covers new yarn capacity, additional sheeting looms, paper manufacturing and renewable energy.
- Trident shares rose as much as 13.4% to ₹25.19 on November 3, 2026.
Trident Q2 FY27 results: Profit nearly doubles
Trident Limited reported a strong improvement in profitability for the September quarter of FY27, with consolidated net profit attributable to owners rising 93.1% year-on-year to ₹175.58 crore.
The company had reported a profit of ₹90.93 crore in the corresponding quarter of the previous financial year. The latest performance was supported by higher operating profitability and a significant improvement in EBITDA margins.
However, revenue from operations declined 3.8% to ₹1,719.48 crore from ₹1,787.17 crore in Q2 FY26. The contrasting movement in revenue and profit indicates that improved operating margins and cost management played an important role in the quarter’s earnings growth.
The company’s EBITDA increased 46.5% to approximately ₹313.7 crore, compared with ₹214.1 crore a year earlier. Its EBITDA margin expanded to around 18% from 12% in the year-ago period.
Trident Q2 FY27 financial performance
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹1,719.48 crore | ₹1,787.17 crore | -3.8% |
| EBITDA | ₹313.7 crore | ₹214.1 crore | +46.5% |
| EBITDA margin | 18% | 12% | +600 bps |
| Profit before tax | ₹232.49 crore | ₹123.96 crore | +87.5% |
| Net profit | ₹175.58 crore | ₹90.93 crore | +93.1% |
The results show that Trident generated considerably higher operating profit despite lower sales. The expansion in margins is particularly important because it indicates that the company improved profitability without relying on revenue growth during the quarter.
Yarn business drives growth while towel revenue declines
Trident’s segment performance was mixed in Q2 FY27. Its yarn business remained a major contributor, while the towel segment faced a substantial decline in revenue.
The yarn division reported revenue of ₹1,018.96 crore, compared with ₹923.64 crore in Q2 FY26, representing growth of approximately 10.3%.
Its segment result increased sharply to ₹191.19 crore from ₹47.24 crore. This improvement made yarn one of the strongest contributors to the company’s quarterly profitability.
The towel business, however, continued to face pressure. Revenue declined 21.1% year-on-year to ₹570.75 crore from ₹723.46 crore. Its segment result fell to ₹32.58 crore from ₹78.23 crore.
The bedsheet business delivered a better performance, with revenue rising 19.2% to ₹311.36 crore from ₹261.22 crore. Its segment result more than doubled to ₹38.57 crore.
The paper and chemicals division also recorded revenue growth, although profitability in the segment weakened.
Segment-wise performance
| Business segment | Q2 FY27 revenue | Q2 FY26 revenue | Revenue growth |
|---|---|---|---|
| Yarn | ₹1,018.96 crore | ₹923.64 crore | +10.3% |
| Towels | ₹570.75 crore | ₹723.46 crore | -21.1% |
| Bedsheets | ₹311.36 crore | ₹261.22 crore | +19.2% |
| Paper and chemicals | ₹287.90 crore | ₹246.89 crore | +16.6% |
Segment figures represent reported business-segment revenue and should not be added together to calculate consolidated revenue, as segment reporting can include inter-segment adjustments.
The figures suggest that the weakness in towels was an important factor behind the overall decline in revenue. Growth in yarn, bedsheets and paper helped offset part of that pressure.
Trident approves ₹4,650 crore expansion and modernisation plan
Alongside its quarterly results, Trident’s board granted in-principle approval for a ₹4,650 crore capital expenditure programme covering capacity expansion and modernisation across its business segments.
The investment is intended to increase manufacturing capacity, upgrade older machinery, expand the company’s home-textile operations and improve energy efficiency.
The programme includes the following major projects:
| Project | Planned investment | Key expansion |
|---|---|---|
| New yarn facility at Dhar | ₹1,660 crore | 1,99,680 spindles |
| Yarn expansion and modernisation at Budhni | ₹1,022 crore | Additional and upgraded spindle capacity |
| Sheeting business expansion | ₹1,018 crore | 336 additional looms |
| Paper manufacturing expansion | ₹296 crore | Additional 28 tonnes per day |
| Hybrid renewable energy project | ₹654 crore | 60 MW wind and 20 MW solar |
| Total | ₹4,650 crore |
The projects are planned across different stages, rather than being completed simultaneously.
New yarn manufacturing facility in Dhar
One of the largest investments is a proposed yarn manufacturing facility in Dhar, Madhya Pradesh.
Trident plans to establish the facility with an installed capacity of 1,99,680 spindles. The company has acquired approximately 179.2 acres of leasehold land for the project at a cost of around ₹106.09 crore.
The project is expected to be completed by September 30, 2029.
The additional capacity could strengthen Trident’s yarn manufacturing operations and support its wider textile business.
Expansion and modernisation at Budhni
The company has also allocated ₹1,022 crore to expand and modernise its existing yarn manufacturing facility at Budhni, Madhya Pradesh.
The project includes adding 99,840 spindles, modernising 48,000 existing spindles into 70,176 new spindles designed for finer yarn counts, and replacing 960 old rotors with 2,400 new ones.
The work is expected to be completed by December 31, 2027.
Modernisation could help the company improve manufacturing efficiency and expand its ability to produce higher-value yarn products.
More investment in sheeting and paper
Trident plans to invest ₹1,018 crore in its sheeting business by adding 336 looms. The expansion is expected to be completed by January 31, 2028.
The company will also invest ₹296 crore to increase paper manufacturing capacity by 28 tonnes per day, with completion targeted for March 31, 2028.
These projects are intended to strengthen production capacity in two other parts of the company’s business portfolio.
Renewable energy investment
The remaining ₹654 crore is earmarked for an 80 MW hybrid renewable energy project.
It will comprise 60 MW of wind power and 20 MW of solar power capacity. The project is expected to be completed by October 31, 2028.
The investment is intended to support the company’s energy requirements and improve the share of renewable electricity in its manufacturing operations.
How will Trident fund the expansion?
The ₹4,650 crore programme represents a substantial investment for the company. The expansion is expected to be funded through a combination of internal accruals and debt.
This means Trident intends to use cash generated from its business alongside borrowings to finance the projects.
The funding structure will be important because large manufacturing investments require significant spending before the additional capacity begins generating revenue.
Investors will therefore monitor the company’s debt levels, cash flows, project execution and returns from the new facilities.
The board’s in-principle approval also means the projects remain subject to the applicable implementation processes and timelines. The full financial benefit will emerge progressively as the facilities become operational.
Trident shares jump 13% after results
Trident shares rallied as much as 13.4% to an intraday high of ₹25.19 on the NSE on November 3, 2026, following the earnings announcement and expansion plans.
The stock’s sharp movement reflected investor attention on the nearly doubled quarterly profit, higher operating margins and the company’s long-term capacity investment.
More than 200 million shares changed hands across the NSE and BSE during the trading session, indicating substantial market activity.
However, the stock had experienced pressure before the rally, having touched a 52-week low of ₹20.15 in October 2026. Its recovery should be viewed in the context of both its recent performance and the company’s longer-term execution prospects.
A large capital expenditure announcement can improve future growth prospects, but it does not automatically translate into higher earnings. Investors will need to assess whether the new capacity generates sufficient demand and returns to justify the investment.
The Bigger Picture
Trident’s Q2 FY27 results highlight a shift in its earnings performance: profitability improved sharply even as consolidated revenue declined. Stronger yarn and bedsheet performance, alongside a significant improvement in operating margins, helped offset weakness in the towel business. The proposed ₹4,650 crore investment signals that the company intends to expand its manufacturing footprint and modernise operations over the coming years.
The key challenge will be execution. The new yarn facility, Budhni modernisation, sheeting expansion, paper capacity and renewable energy project all involve substantial investment and multi-year timelines. Their contribution to growth will depend on demand, utilisation, operating costs and financing discipline. The quarterly profit increase is encouraging, but sustained revenue growth and successful execution will be important to the company’s longer-term performance.
Looking Ahead
Investors will watch whether Trident can sustain its improved margins while addressing the weakness in its towel business. The next few quarters should provide more information about demand across its textile segments, the pace of capacity expansion and the company’s ability to manage the investment programme without putting excessive pressure on its balance sheet.
The proposed facilities are expected to come online in stages between 2027 and 2029. If completed on schedule and supported by sufficient demand, the expansion could increase Trident’s manufacturing capacity and strengthen its position in yarn, home textiles and paper. Until then, project execution, funding and operating performance will remain important factors to monitor.
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