Trident Limited, one of India’s leading textile and paper manufacturers, reported an impressive performance for the first quarter of FY26, ended June 30, 2025.
The company’s consolidated net profit jumped to ₹1,399.6 million—an 89.5% year-on-year (YoY) increase compared to ₹738.9 million in Q1 FY25. Despite a slight fall in revenue, this significant profit growth showcases Trident’s sharp focus on operational efficiency and cost control.
Trident Financial Performance: Profits Shine Amid Revenue Pressure
While Trident’s revenue from operations declined by 2.1% YoY to ₹17,068.9 million, the company managed to increase profit before tax (PBT) by 84.1% YoY to ₹1,877.4 million. Total income for the quarter stood at ₹17,269.0 million, down 1.7% YoY.
- Net Profit (PAT): ₹1,399.6 million (+89.5% YoY)
- Earnings per Share (EPS): ₹0.27 (up from ₹0.15 YoY)
- EBITDA: Estimated at ₹3,118.7 million (up ~30% YoY)
These numbers reflect how the company’s improved margins and reduced costs helped counterbalance the revenue dip.
Segment Highlights: Paper & Chemicals Lead the Way
Trident’s business segments showed mixed results, with the Paper & Chemicals division delivering the highest margins. Here’s a quick breakdown:
- Yarn: Revenue of ₹9,020.3 million; EBIT ~₹700.7 million
- Towels: Revenue of ₹6,389.3 million; EBIT ~₹476.4 million
- Bedsheets: Revenue of ₹3,093.9 million; EBIT ~₹447.7 million
- Paper & Chemicals: Revenue of ₹2,598.3 million; EBIT ~₹733.4 million
Despite fluctuations in the textile business, the Paper & Chemicals segment helped drive profitability thanks to better pricing and demand stability.
Key Announcements: Dividend, Fundraise & Restructuring
The Board of Directors approved an interim dividend of ₹0.50 per share, rewarding shareholders. Additionally, Trident plans to raise ₹500 crore via Non-Convertible Debentures (NCDs), subject to shareholder approval, to strengthen its balance sheet further.
Other key corporate updates include:
- Divestment of Trident Home Textiles Ltd. to Lotus Home Textiles Ltd. for ₹10.69 million.
- Tax department searches were conducted, but no material financial impact was reported.
These actions signal Trident’s strategy of focusing on core strengths and prudent capital management.
Market Reaction & Future Outlook
Following the results, Trident’s share price rose 1.7–2%, trading around ₹31.50 on July 24. The stock is recovering after a brief correction and is currently viewed as attractively valued by analysts.
- 52-week range: ₹23.20–₹41.49
- Valuation: PE ~43×; PB ~3.4×
- Dividend Yield: ~2.8%
- Debt-to-EBITDA ratio: ~1.3
- Cash & equivalents: ₹681 crore
Management remains optimistic. MD Deepak Nanda stated: “Our strong profit growth reflects disciplined execution and a diversified portfolio. We are focused on strengthening our balance sheet and unlocking value through strategic initiatives.”
Conclusion:
Trident has kicked off FY26 with strong bottom-line performance, driven by margin expansion and efficient cost control—even as revenue dipped slightly. The company’s diversified operations, especially the high-margin paper and chemicals segment, are proving resilient.
With strong cash flow, shareholder rewards, and a clear growth strategy, Trident is well-positioned for continued success in FY26. However, investors should stay mindful of risks from cotton price volatility, tax scrutiny, and market cycles.
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