Stock Below Rs 30: Profit Nearly Doubles, Board Approves Rs 4,650 Crore Expansion Plan; Shares Jump 10%

Trident’s integrated model links its yarn operations with its home-textile businesses, while paper and chemicals provide an additional earnings stream. The company has now reported a sharp improvement in September-quarter profitability and approved a Rs 4,650 crore expansion and modernisation programme spanning yarn, sheeting, paper and renewable energy.

Consolidated net profit rose to Rs 175.58 crore for the quarter ended September 30, 2026, from Rs 90.93 crore a year earlier. Revenue from operations, however, declined 3.8 per cent YoY to Rs 1,719.48 crore. Profit before Tax increased to Rs 232.49 crore from Rs 123.96 crore, while quarterly expenses fell to Rs 1,509.73 crore from Rs 1,680.68 crore.

The lower cost base helped net profit margin improve to about 10.2 per cent from roughly 5.1 per cent a year earlier. Profit also rose from Rs 158.09 crore in the June 2026 quarter despite a 3.8 per cent QoQ decline in revenue. Finance costs increased to Rs 32.53 crore from Rs 24.86 crore, partly offsetting the operating improvement.

Yarn was the principal earnings driver. Segment profit before finance costs, exceptional items, tax and unallocable expenditure rose to Rs 191.19 crore from Rs 47.24 crore. Bedsheets segment profit more than doubled to Rs 38.57 crore, while towel segment profit fell to Rs 32.58 crore from Rs 78.23 crore despite being a substantial part of Trident’s home-textile portfolio.

The proposed capital programme includes 99,840 additional spindles at Budhni and a new Dhar yarn facility with 1,99,680 spindles. The two additions together equal about 38 per cent of Trident’s disclosed existing spindle base of more than 7.97 lakh. The plan also covers replacement of older spinning machinery, 336 additional sheeting looms, 28 tonnes per day of paper capacity and renewable-energy facilities involving 60 MW of wind and 20 MW of Solar capacity. The project is nearly 15 times Trident’s FY26 cash capital expenditure of Rs 315.82 crore. Consolidated operating cash flow for the first half rose to Rs 798.47 crore from Rs 645.29 crore.

As of 10:50 am on November 3, 2026, Trident shares were trading at Rs 24.37, up 9.77 per cent from the previous close of Rs 22.20. The stock remained about 16.8 per cent below its 52-week high of Rs 29.29, although it was above the 52-week low of Rs 20.48. Over the past year, the shares declined 20.52 per cent, compared with a 6.52 per cent fall in the BSE 500.

What This Means for Investors

The September quarter strengthens the case that Trident’s integrated textile platform can lift profitability even when sales are soft. Lower expenses and a sharp improvement in yarn segment profit drove the recovery, while bedsheets also improved. The Rs 4,650 crore programme creates a longer-term route to more yarn output, modern equipment and captive renewable energy. Its scale, almost 15 times FY26 cash capital expenditure, makes execution, commissioning and capital allocation central to the next phase.

Profit growth has outpaced revenue, so the durability of the new margin level remains the key test, particularly with towel segment profit lower YoY and finance costs higher. The stock’s valuation of 23.57 times trailing 12-month earnings and 11.47 times enterprise value to earnings before interest, tax, depreciation and amortisation places greater weight on sustained operational gains. Investors will also watch whether operating cash generation can support expansion without stretching leverage or working capital.

Disclaimer: The article is for informational purposes only and not investment advice.