Trident shares surged more than 11% on Tuesday, Nov. 3, after the company reported a 93.4% year-on-year increase in net profit for the September quarter and announced a Rs 4,650 crore capacity expansion and modernisation plan across its businesses.
At around 10:06 a.m., the stock was trading at Rs 24.8 apiece on the NSE, gaining around 11.7% from its previous close at Rs 22.21.
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The textile and paper manufacturer reported a net profit of Rs 176 crore in the second quarter of fiscal 2027, up 93.4% year-on-year even as revenue fell 3.8% to Rs 1,719 crore during the period, as per an exchange filing by the company.
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Earnings before interest, taxes, depreciation, and amortisation also increased 46.7% to Rs 314 crore, while the Ebitda margin expanded to 18.3% from 12% a year ago.
Trident Ltd. Q2 Results: Key Highlights
- Trident's Q2 FY27 net profit rose 93.4% to Rs 176 crore year-on-year
- Revenue declined 3.8% to Rs 1,719 crore compared to last year
- EBITDA increased 46.7% to Rs 314 crore with margin expanding to 18.3%
Also Read: Trident Q2 Results: Profit Jumps 93% On Massive Margin Expansion; Revenue Sees Modest Uptick
Trident Announces Rs 4,650 Crore Expansion Plan
Along with the financial results for the second quarter, Trident's board also approved a Rs 4,650 crore investment across its yarn, sheeting, paper, and renewable energy businesses to increase manufacturing capacity and modernise existing facilities.
The largest investment of Rs 1,660 crore is for a new yarn manufacturing facility at Dhar, Madhya Pradesh. This plant will have a capacity of manufacturing 1,99,680 spindles and is expected to be completed by Sept. 30, 2029. The company has already acquired 179.2 acres of leasehold land for the project at a cost of around Rs 106.09 crore.
The company will also invest Rs 1,022 crore in its existing yarn manufacturing facility at Budhni, Madhya Pradesh. This will add another 99,840 spindles to the existing capacity, which stood at 7,46,064 spindles. The company will also modernise 48,000 spindles to 70,176 spindles.
Furthermore, the company will replace 960 old rotors with 2,400 new rotors. The expansion is expected to be completed by Dec. 31, 2027.
Sheeting, Paper And Renewable Energy Expansion
Trident will be using Rs 1,018 crore for its sheeting business, which will see the addition of 336 looms. The project is expected to be completed by Jan. 31, 2028.
Another Rs 296 crore will be invested to increase paper manufacturing capacity by 28 tonnes per day, with completion targeted by March 31, 2028.
Trident is also venturing into renewables and will invest Rs 654 crore in a hybrid renewable energy project comprising 60 MW of wind power and 20 MW of solar power capacity on an AC basis. The project is expected to be completed by Oct. 31, 2028.
The proposed investments will be funded through internal accruals and debt, according to the company's exchange filing.
Trident Stock Price Performance
The stock has been under pressure in 2026, losing around 8% so far in this calendar year. Currently, it is trading at a price-to-earnings multiple of 23.58 times, with a market cap of Rs 12,648.2 crore.
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