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Triveni Engineering climbs 10% on May 28; here's what sparked the rally

Triveni Engineering share price: Distilleries company Triveni Engineering share price was in demand on Wednesday, May 28, 2025, with the scrip rising up to 10.41 per cent to hit an intraday high of ₹468.20. At 10:30 AM, Triveni Engineering share price was trading 8.55 per cent higher at ₹460.30 per share. In comparison, BSE Sensex was trading 0.27 per cent lower at 81,327.52 level. What sparked the rally in Triveni Engineering share price? Triveni Engineering share price rose on the back of a healthy March quarter of financial year 2025 (Q4FY25) results. The company's profit after tax (PAT) jumped 16.2 per cent year-on-year (Y-o-Y) to ₹187.1 crore in Q4FY25, from ₹161 crore in Q4FY24. Triveni Engineering's revenue from operations (net of excise duty) 25.1 per cent Y-o-Y to ₹1,629.3 crore in the March quarter of FY25, from ₹1,302.1 crore in the March quarter of FY24. At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) surged 21.5 per cent Y-oY to ₹317.4 crore in Q4FY25, from ₹261.2 crore in Q4FY24. Ebitda margin, however, contracted 60 basis points (bps) to 19.5 per cent in Q4FY25, from 20.1 per cent in Q4FY24. On a consolidated basis, the gross debt of the company stood at ₹1969.2 crore as on March 31, 2025, as against ₹1,411 crore as on March 31, 2024, including ₹202.6 crore pertaining to the subsidiary SSEL. Overall average cost of funds (standalone) is at 6.9 per cent during FY25 as against 6.5 per cent a year ago, the company said. ALSO READ | LIC shares soar 8% in best session since Nov 2023 on Q4 results Triveni Engineering's Segment Profits (PBIT) of Sugar business declined 12.8 per cent annually. The decline, according to the company, was primarily due to the higher cost of sugar sold during the year, which stemmed from the increased cost of sugar production in Sugar Season (SS) 2023–24, driven by a rise in sugarcane prices. Furthermore, sugar produced in SS 2024–25 incurred higher production costs due to lower recovery rates. The Alcohol business also saw a drop in profitability, affected by several operational and market factors. A major portion of ethanol sales came from maize-based production, which had lower margins compared to ethanol derived from Surplus Food Grains (SFG)—available until July 2023 at ₹20 per kg. Additionally, there was a lower sales volume of ethanol produced from molasses, due to reduced sugarcane crushing and a higher share of operations using C-heavy molasses. Profitability was further impacted by the non-recovery of fixed expenses during periods when distilleries remained shut due to a shortage of feedstocks. Moreover, there was an increase in the internal transfer price of molasses, which further weighed on margins. Lastly, the segment profits also reflect a net adjustment for the segment loss of Sir Shadi Enterprises Limited (SSEL). 'The year gone by presented several profitability challenges to the Company especially in the Sugar and Alcohol businesses while our Power Transmission business delivered another year of stellar performance in revenues, profitability and order booking. The Company is hopeful of an improved performance in the coming year through proactive measures in our Sugar and Alcohol businesses,' said Dhruv M Sawhney, chairman and managing director, Triveni Engineering & Industries. ALSO READ | About Triveni Engineering Triveni Engineering is a diversified industrial conglomerate with core strengths in sugar, alcohol, power transmission, and water and wastewater treatment. It is one of India's largest integrated sugar producers and among the top ethanol manufacturers, while also making major contributions in power transmission and water infrastructure solutions. The company operates eight sugar mills across Uttar Pradesh including Khatauli, Deoband, Sabitgarh, and Shamli in the west; Chandanpur, Rani Nangal, and Milak Narayanpur in the central region; and Ramkola in the east. The Company also runs six co-generation power plants at five of these sugar units, with a combined grid-connected capacity of 104.5 MW. The Company's Power Transmission (Gears) manufacturing facility is based in Mysuru, while the Water & Wastewater treatment business operates out of Noida. It owns five modern distilleries located in Muzaffarnagar (2 facilities), Sabitgarh, Milak Narayanpur, and Rani Nangal. These facilities produce ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit (RS), and Denatured Spirit (SDS), using both sugarcane-based and grain-based feedstocks. The Company also markets Distillers Dried Grain Solubles (DDGS), a co-product from grain processing, which is well-accepted by premium institutions. In addition, Triveni Engineering manufactures both Indian Made Indian Liquor (IMIL) and Indian Made Foreign Liquor (IMFL).