Trident shares jump 13 per cent after Q2 profit rises 93 per cent
The textile and paper manufacturer also announced an in-principle approval for a ₹4,650 crore expansion and modernisation programme.
Trident shares rose 13.42 per cent on Tuesday, 3 November, after the company reported a significant increase in its September-quarter profit. According to Mint, the textile and paper manufacturer also received in-principle approval from its board for a ₹4,650 crore capacity expansion and modernisation programme.
The company's consolidated profit attributable to owners rose 93.1 per cent year-on-year to ₹175.5 crore in the second quarter of FY27, up from ₹90.9 crore in the same period last year. However, revenue from operations saw a 3.8 per cent decline to ₹1,719.48 crore from ₹1,787.17 crore in the previous year's corresponding quarter.
Despite the lower revenue, EBITDA grew 46.5 per cent year-on-year to ₹313.7 crore, while the EBITDA margin increased to 18 per cent from 12 per cent. Total consolidated expenses fell 10.2 per cent to ₹1,509.73 crore during the September quarter.
The expansion plan includes adding 99,840 spindles at the Budhni facility in Madhya Pradesh and establishing a new yarn manufacturing unit in Dhar, Madhya Pradesh. The company has acquired 179.2 acres of leasehold land for the Dhar project for approximately ₹106.09 crore.
Trident also intends to add 336 looms to its sheeting business and increase paper manufacturing capacity by 28 tonnes per day. Additionally, the company plans to implement a renewable energy project consisting of 60 MW of wind power and 20 MW of solar power capacity.
Gaurav Arora, Head of Research at SAHI, noted that the stock is testing resistance at the 50-week EMA of approximately ₹25.02. He stated that a move above this level could lead to further gains.