Trident shares jump 13% after Q2 profit surge
Trident Ltd's shares rose 13.42% on Tuesday, 3 November, after the textile and paper maker posted a 93.1% year-on-year increase in consolidated profit attributable to owners, reaching ₹175.5 crore in the September quarter of FY27 versus ₹90.9 crore a year earlier.
The profit jump came despite a 3.8% decline in revenue from operations, which fell to ₹1,719.48 crore from ₹1,787.17 crore in the comparable quarter of FY26. Operating efficiency improved, with EBITDA climbing 46.5% to ₹313.7 crore and the EBITDA margin expanding to 18% from 12% a year ago.
Quarter-on-quarter, profit rose 11.1% to ₹158.09 crore from Q1 FY27, while revenue slipped 3.8% to ₹1,786.83 crore and total expenses fell 4.9% to ₹1,509.73 crore.
Segment performance showed mixed trends: yarn revenue increased to ₹1,018.96 crore, with segment profit surging to ₹191.19 crore; towel revenue dropped to ₹570.75 crore and segment profit fell to ₹32.58 crore; bedsheets revenue rose to ₹311.36 crore, with profit more than doubling to ₹38.57 crore; paper and chemicals revenue grew to ₹287.90 crore, but segment profit declined to ₹34.27 crore.
The board gave in-principle approval for a ₹4,650 crore capacity expansion and modernisation programme. In the yarn business, the plan adds 99,840 spindles at the Budhni plant, upgrades 48,000 existing spindles to 70,176 finer-count spindles, and replaces 960 rotors with 2,400 new ones. A new yarn facility in Dhar will be built with 1,99,680 spindles on 179.2 acres acquired for roughly ₹106.09 crore.
Beyond yarn, Trident will install 336 new looms in its sheeting unit, boost paper capacity by 28 tonnes per day, and launch a hybrid renewable energy project comprising 60 MW of wind and 20 MW of solar power.
The stock opened at ₹23.11 on the BSE, touched an intraday high of ₹25.18, and fell to a low of ₹22.64. Gaurav Arora of SAHI noted the share price is testing resistance at the 50-week EMA around ₹25.02, a level that has previously rejected upward moves. He observed a falling-wedge pattern that could signal easing selling pressure and a potential reversal if the EMA is breached.
Why it matters
The earnings beat and large expansion plan could reshape Trident's growth trajectory, making its stock a focal point for investors tracking Indian manufacturing and renewable-energy exposure.
FAQ
What was Trident's profit increase in Q2 FY27?
Consolidated profit attributable to owners rose 93.1% year-on-year to ₹175.5 crore.
How much is the approved expansion programme?
The board granted in-principle approval for a ₹4,650 crore capacity expansion and modernisation programme.
What technical level is the stock testing?
Trident shares are testing resistance at the 50-week EMA around ₹25.02.
Source: Mint Markets. See the original source for full details.
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