Trident shares jump 13 per cent after Q2 profit rises 93 per cent
The textile and paper manufacturer announced a ₹4,650 crore capacity expansion and modernisation programme following its September-quarter results.
Trident shares rose 13.42 per cent on Tuesday, 3 November, after the company reported a significant rise 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 investment plan for modernisation and capacity expansion.
The company's consolidated profit attributable to owners reached ₹175.5 crore in the second quarter of FY27, up from ₹90.9 crore in the same period last year. While profit grew, 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.
Operating performance improved as EBITDA rose 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 expenses for the quarter fell 10.2 per cent to ₹1,509.73 crore.
The expansion plan includes adding 99,840 spindles at an existing facility in Budhni, Madhya Pradesh, and establishing a new yarn manufacturing unit in Dhar, Madhya Pradesh. The company also intends to add 336 looms to its sheeting business and increase paper manufacturing capacity by 28 tonnes per day.
Gaurav Arora, Head of Research at SAHI, noted that the shares are testing resistance at the 50-week EMA of approximately ₹25.02. He stated that a move above this level could lead to further upside.