Trident shares jump 13% after Q2 results; profit jumps 93%, board clears ₹4,650 crore expansion plan | What lies ahead
Trident shares surged 13.42% on Tuesday, 3 November, after the company reported a sharp rise in its September-quarter profit and announced an in-principle approval for a ₹4,650 crore capacity expansion and modernisation programme.
The textile and paper manufacturer reported a 93.1% year-on-year increase in consolidated profit attributable to owners to ₹175.5 crore in Q2 FY27, compared with ₹90.9 crore in the corresponding quarter of the previous financial year.
However, revenue from operations declined 3.8% to ₹1,719.48 crore from ₹1,787.17 crore in Q2 FY26.
Despite the decline in revenue, the company delivered a significant improvement in operating performance. EBITDA rose 46.5% year-on-year to ₹313.7 crore from ₹214.1 crore, while the EBITDA margin expanded to 18% from 12% a year earlier.
Trident's consolidated total expenses fell 10.2% to ₹1,509.73 crore in the September quarter, compared with ₹1,680.68 crore in the year-ago period.
On a quarter-on-quarter basis, profit attributable to owners increased 11.1% from ₹158.09 crore in Q1 FY27.
Revenue from operations, however, declined 3.8% from ₹1,786.83 crore in the June quarter. Total expenses also decreased 4.9% sequentially to ₹1,509.73 crore from ₹1,587.20 crore.
Trident's yarn business recorded revenue of ₹1,018.96 crore in Q2 FY27, compared with ₹923.64 crore in the corresponding quarter last year. The segment result increased sharply to ₹191.19 crore from ₹47.24 crore.
The towel business, in contrast, reported revenue of ₹570.75 crore, down from ₹723.46 crore a year ago. Its segment result also declined to ₹32.58 crore from ₹78.23 crore.
The bedsheets segment posted revenue of ₹311.36 crore, compared with ₹261.22 crore in Q2 FY26. Its segment result more than doubled to ₹38.57 crore from ₹18.34 crore.
Revenue from the paper and chemicals business increased to ₹287.90 crore from ₹246.89 crore. However, the segment result declined to ₹34.27 crore from ₹43.05 crore in the year-ago quarter.
Separately, Trident's board has granted in-principle approval for a ₹4,650 crore investment programme covering capacity expansion and modernisation across its business segments.
As part of the yarn business expansion, the company plans to add 99,840 spindles at its existing manufacturing facility in Budhni, Madhya Pradesh. It will also modernise 48,000 existing spindles into 70,176 new spindles designed for finer counts and replace 960 old rotors with 2,400 new ones.
The company also plans to establish a new yarn manufacturing facility in Dhar, Madhya Pradesh, with an installed capacity of 1,99,680 spindles. It has acquired 179.2 acres of leasehold land for the proposed project at a cost of approximately ₹106.09 crore.
The investment programme extends beyond yarn manufacturing. Trident plans to add 336 looms to its sheeting business and increase its paper manufacturing capacity by 28 tonnes per day (TPD).
The company will also undertake a hybrid renewable energy project involving 60 MW of wind power and 20 MW of solar power capacity (AC), as part of its broader expansion and modernisation plans.
Trident share price today opened at ₹23.11 apiece on the BSE, the stock touched an intraday high of ₹25.18 per share, and an intraday low of ₹22.64 apiece.
Gaurav Arora, Head of Research at SAHI, said Trident shares have rallied sharply in Tuesday's session and are now testing resistance at the 50-week EMA, placed around ₹25.02. This is a crucial technical level, as the stock has faced rejection on previous attempts to move above it.
He added that the broader chart structure indicates the formation of a falling wedge pattern, which typically signals easing selling pressure and the possibility of a reversal. A decisive move above the 50-week EMA could pave the way for further upside, while the ₹25.02 level remains a key resistance to watch.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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HomeMarketsStock MarketsTrident shares jump 13% after Q2 results; profit jumps 93%, board clears ₹4,650 crore expansion plan | What lies ahead
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