Triveni Turbine's Long-Term Strength Remains Intact Despite Short-Term Pressure; PL Capital Maintains 'Buy'

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PL Capital Report

Triveni Turbine Ltd. is well-positioned in the niche <100 MW steam turbine market with 50– 55% domestic share and 20–25% global share, supported by limited competition and strong OEM capabilities. Despite near-term headwinds from tariff-related uncertainties and slower-than-expected US traction, recovery is expected from H2 FY26 with long-term macro tailwinds intact.

The high-growth aftermarket segment remains a key earnings driver, supported by refurbishment and service opportunities across the turbine lifecycle.

In parallel, API turbines business is expected to benefit from Triveni Turbine’s expanding footprint in the Indian and Middle Eastern markets.

Additionally, new CO₂-based product initiatives reinforce the company’s long-term growth pipeline. With a dominant position in core markets, expanding global footprint, and steady diversification into new technologies, Triveni Turbine targets to double its revenue over the next five years, offering strong growth visibility.

We remain watchful of Triveni Turbine’s short-term challenges due to order finalization delays and weaker execution. However, its long-term prospects continue to remain strong due to-

1. a healthy enquiry pipeline across markets,

2. growing share of higher margin exports and Aftermarket sales,

3. strong traction in both industrial and API drive turbines, and

4. a robust order book with strong inflows across businesses.

The stock is trading at a P/E of 40.0x/32.6x on FY26/27E EPS. We maintain ‘Buy’ rating with a target price of Rs 650 (same as earlier), valuing the stock at a P/E of 40x Mar’27E (same as earlier).

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