Q&A with the Vice Chairman and Managing Director

FY 26 was a year of satisfactory performance for Triveni Turbines. Healthy execution across the business, particularly in export and aftermarket segments, ensured resilience even as the overall operating environment remained challenging. The Company delivered a robust 9% Y-o-Y increase in annual revenue, to a record ₹ 21.81 billion. This performance underlines the inherent strength of our business model and healthy execution across key businesses despite continued geopolitical uncertainties, supply chain disruptions in certain markets, and economic stress across regions.

Our performance was led by higher export sales, which increased 30% Y-o-Y to ₹ 12.6 billion and contributed 58% to the full year’s revenue as compared to 48% in the previous year. EBITDA stood at ₹ 5.27 billion, registering a Y-o-Y growth of 1.8% with an EBITDA margin of 24.2%. Profit Before Tax, before the exceptional non-recurring charge of ₹ 157 million towards employee benefit obligations under the new wage code, stood at ₹ 4.90 billion, with margins at 22.5% impacted by an adverse segment mix, lower aftermarket, particularly spares, and execution of strategic orders during FY 26. Profit After Tax was ₹ 3.49 billion, broadly stable compared to the previous year, and impacted by an exceptional charge.

Global industries and businesses witnessed major challenges in the operating environment during the year. Order booking and deliveries were affected in the early part of the year due to the India-Pakistan war, followed by the tariff disruptions. Geopolitical tensions, including the West Asia crisis towards the end of the year, impacted order booking, project execution timelines and service activities in several regions. There was significant volatility in freight and logistics, along with extended decision-making cycles in some international markets.

Our agility and proactive engagement with customers and supply chain partners enabled us to effectively address the various challenges. Our diverse geographical and sectoral presence supported our growth during the year despite the macroeconomic challenges and market volatility. Our diversification strategy enabled us to sustain our domestic market share while expanding our global footprints.

Energy demand is growing universally, supported by industrialisation, rising electricity consumption and increasing electrification across economies. The rapid expansion of data centres and AI infrastructure, along with growing cooling demand driven by urbanisation and rising temperatures, is further accelerating the need for reliable and efficient power. This is playing out alongside a parallel shift toward efficiency, decentralised power generation, and renewable thermal solutions such as biomass and waste-to-energy. Together, these trends are catalysing demand for both conventional thermal capacity and renewable thermal solutions.

Recognising these opportunities early, TTL strengthened its portfolio across both conventional and renewable thermal applications, while expanding geothermal and CO₂-based ESS applications. In FY 26, ~65% of our overall order bookings came from thermal renewable fuels, reflecting the pace of that transition. Our participation in conventional thermal applications is also growing alongside it, as rising global energy demand cannot be met by renewable sources alone.

We moved to strengthen our presence in emerging growth platforms by expanding into geothermal and process-industry opportunities in domestic and Southeast Asia, North America, and Africa. We have seen encouraging traction in these markets, giving us greater visibility for future growth. Additionally, we expanded our API-compliant turbine portfolio, reinforcing our ability to serve energy and process industries seeking higher efficiency, reliability, and emissions reduction.

We ended FY 26 with a healthy order book and a strong enquiry pipeline across both domestic and international markets. Driven by robust demand across markets and strong booking momentum in Q4, order booking remained resilient at ₹ 23.26 billion, while the enquiry base was strong, having doubled over March 2025, thereby providing fair visibility of continued growth momentum.

The quality of the overall order booking mix saw a meaningful improvement, supported by a strong scale-up of the aftermarket business that reported a significant increase in the share of the total orders to 38% as against 26% in FY 25, reflecting the continued strengthening of our business mix. Expanding opportunities across the utility and geothermal markets and performance optimisation solutions led to the aftermarket growth. Exports accounted for 52% of the total orders, reflecting continued traction and momentum across key markets in Southeast Asia and Europe. Domestic demand also remained healthy across industrial segments including steel, cement, waste heat recovery, thermal power, chemicals, and paper.

Our success in the geothermal products and aftermarket segment is a key milestone for the Company in a technically demanding field. We see strong growth opportunity in this segment in South East Asia and the US markets, and will focus actively on harnessing the same.

Anchored by our subsidiary - Triveni Turbines Americas Inc. in Houston, Texas, the USA is a key market for our long-term growth. In addition to straight thermal and combined cycle applications for the data centres, we are seeing demand across geothermal, biomass, pulp & paper and other conventional industrial applications. We expect the enquiry pipeline to build up further across segments in the coming year.

Aftermarket, as we all know, is driven by the installed base, which in the US is massive. So that presents an enormous opportunity for us to both refurbish, repair, modernise, or upgrade current installations.

Our brand visibility in the US market has been improving, as reflected in the increasing number of enquiries, and we remain optimistic on the market from a medium and longer term perspective.

Our new product introductions reflect our growing capabilities in precision engineering and technological innovation, reinforcing our commitment to developing advanced solutions that address evolving customer requirements. They have strengthened our competitiveness in niche application areas, while augmenting our ability to address emerging customer needs across industries and geographies.

With the launch of India’s first Transcritical CO₂-based heat pump, we have taken another step towards promoting efficiency in industrial heating. Our newly launched Mechanical Vapor Recompression (MVR) systems are well aligned with zero-emissions and energy recovery initiatives across process industries, and are getting strong traction. Both products resonate as solutions combining high efficiency, reliability, operational flexibility, and lower lifecycle costs. Though the market for these products will gradually pick up, it will deepen our engagement with customers and demonstrate our technical prowess, especially in international markets.

Our entry into CO₂ energy storage solutions will further support the growing requirement of energy storage across markets.

We believe our new product developments and initiatives will trigger incremental growth opportunities for Triveni Turbines over the medium to long term while reinforcing our position as a technology-led solutions provider. We are also optimistic about innovating a solution around long-term energy storage, going forward.

We continue to see strong long-term potential in the aftermarket business as customers increasingly prioritise reliability, efficiency, and lifecycle optimisation of their installed assets. Key sectors driving aftermarket demand include waste heat recovery in steel and cement, biomass and waste-to-energy, power generation, process cogeneration, chemicals, and sugar.

Under Triveni REFURB™, we have strengthened our aftermarket proposition by offering manufacturing, refurbishment, retrofit, and lifecycle solutions for steam turbines up to 1,000 MW across leading global OEM platforms. Our comprehensive service portfolio includes O&M contracts, health checks, overhauls, reverse engineering, remote monitoring, and performance enhancement solutions, enabling customers to maximise asset availability and extend equipment life.

Geographically, we are witnessing significant growth across Southeast Asia, Europe, Africa, and the Americas, with particularly strong demand from waste-to-energy and geothermal projects. Our strategically located service offices in London, Dubai, Indonesia, and South Africa enable us to respond quickly to customer requirements, minimise downtime, and enhance service quality.

To further strengthen our capabilities in North America, we have established a dedicated, full-fledged repair facility in the USA. Given the region’s large installed base of steam turbines across multiple OEM platforms, the US presents a significant long-term opportunity for refurbishment, retrofit, and lifecycle service offerings.

We have undertaken several measures to strengthen our supply chain and operational excellence. These include expansion of manufacturing capacity in Bengaluru, implementation of AI-driven predictive maintenance, and localised services globally. We have also augmented our production capabilities through the adoption of digitalised hydro testing for turbine casings and advanced laser hardening processes. We continue to enhance our in-house design capabilities and R&D, while expanding assembly/testing facilities in North America and South Africa.

During FY 26, we launched TRI-ZEN – a strategic Manufacturing and Supply Chain Transformation initiative focussed on building a world-class, agile, and digitally enabled production system (TTPS 2.0). By integrating lean principles, digital technologies, and robust performance management, TRI-ZEN is driving sustainable improvements in productivity, quality, delivery performance, and operational resilience. The platform will help build a scalable foundation to drive future growth, backed by enhanced operational excellence and customer value.

Driven by lean manufacturing and deep supply chain engagement, we achieved a significant 40% reduction in assembly throughput time and a 25% improvement in subcontract lead times during the year. Additionally, the expansion of our global sourcing footprint has promoted cost competitiveness and quality consistency for the Company.

Going forward, our investment in high-precision infrastructure and expansion of our manufacturing footprint at Sompura will empower us to build a scalable, future-ready organisation.

We are leveraging advanced digital technologies across engineering, manufacturing, service operations, and corporate functions to create a more agile, data-driven, and intelligent enterprise.

Our digital initiatives encompass AI-enabled analytics, predictive maintenance solutions, digital twins, remote monitoring platforms, advanced engineering tools, and intelligent automation. These capabilities enable proactive decision-making, optimise turbine performance, improve asset reliability, reduce downtime, and enhance lifecycle value for customers. Through smart sensors and AI-driven diagnostics, we can identify potential issues early and provide faster, more responsive support across our installed turbine fleet.

Digital twin technology allows us to simulate operating conditions, evaluate performance scenarios, and validate improvements in a virtual environment, thereby accelerating innovation, reducing risk, and improving engineering effectiveness. At the same time, automation and digital engineering technologies are enhancing design precision, manufacturing quality, productivity, and speed-to-market.

In FY 26, we accelerated our enterprise-wide digital transformation journey by expanding the use of AI, advanced analytics, workflow automation, and digital collaboration platforms across key business functions. We also initiated a structured AI adoption programme focussed on building organisational capability, identifying high-impact use cases, and embedding AI into business processes to improve productivity, decision-making, customer engagement, and operational efficiency.

Looking ahead, Triveni Turbines is committed to developing an AI-enabled enterprise by combining domain expertise with emerging technologies to unlock new opportunities for growth, innovation, and customer success. Digitalisation and AI will continue to play a pivotal role in strengthening our market leadership, enhancing competitiveness, and creating sustainable value for all stakeholders.

Going forward, we shall remain focussed on building a stronger, more diversified and future-ready organisation. We shall continue to invest in sustained and responsible growth, with our efforts centred around deepening our presence in high-growth international markets while strengthening our domestic leadership position. We aim to accelerate our aftermarket growth by enhancing our service capabilities, digital solutions, and global reach.

We shall strive continuously to harness emerging opportunities in energy transition and industrial efficiency through innovation-led product diversification and sustained expansion into customer-centric products and solutions. Our new product development strategy is crafted to cater to the growing energy requirement and will drive the expansion of our product portfolio for medium- to long-term sustainable growth. Productivity improvements and supply chain strengthening, coupled with digitalisation initiatives, will further enable us to boost operational excellence.

We also remain committed to the development and empowerment of our people, while strengthening sustainability practices and maintaining prudent capital allocation. Together, these initiatives will drive our efforts to sustain profitable growth and reinforce our position as a leading global industrial steam turbine solutions provider.