Are Triveni Turbine latest results good or bad?

Triveni Turbine's latest financial results for Q2 FY26 reflect a notable operational recovery, with net sales reaching ₹506.20 crores, marking a quarter-on-quarter growth of 36.33% from ₹371.30 crores in the previous quarter. This rebound follows a challenging period where the company experienced a decline in revenue in the prior quarter. However, the year-on-year revenue growth remains modest at just 1.02%, indicating potential stagnation in demand dynamics within the capital goods sector.
The net profit for the quarter stood at ₹91.20 crores, which represents a quarter-on-quarter increase of 41.40% from ₹64.50 crores. This improvement in profitability is accompanied by a significant expansion in operating margins, which rose to 22.64%, up from 19.82% in the previous quarter. This margin expansion reflects the company's effective cost management and operational efficiency, despite the challenges in revenue growth.

Triveni Turbine's return on equity (ROE) is reported at an exceptional 29.37%, showcasing the company's ability to generate substantial profits relative to shareholder equity. The balance sheet remains strong, with zero long-term debt and a healthy current ratio, indicating robust financial health and flexibility for future investments.

However, the company has seen a decline in foreign institutional investor (FII) holdings, which decreased from 28.01% to 23.60% over recent quarters, suggesting some concerns regarding valuation sustainability and growth visibility. Conversely, domestic mutual funds have increased their stake, indicating a divergence in investor sentiment.

Overall, Triveni Turbine's performance in Q2 FY26 highlights a recovery in operational metrics, although the year-on-year revenue stagnation raises questions about future demand. The company has experienced an adjustment in its evaluation, reflecting the complexities of its current financial landscape.