Trident shares jump after profit surges and board clears massive expansion

Trident shares surged 13.42% after the company reported a sharp 93.1% jump in September-quarter profit and announced an in-principle approval for a ₹4,650 crore expansion plan.

Financial Results

The textile and paper manufacturer posted a consolidated profit of ₹175.5 crore for Q2 FY27, up from ₹90.9 crore in the same period last year. Revenue from operations slipped 3.8% to ₹1,719.48 crore. Despite lower revenue, strong cost control helped EBITDA rise 46.5% to ₹313.7 crore, while total expenses dropped 10.2% to ₹1,509.73 crore. On a quarter-on-quarter basis, profit rose 11.1% from ₹158.09 crore in Q1.

Segment Performance

Yarn business revenue reached ₹1,018.96 crore with segment results jumping to ₹191.19 crore. The towel business saw revenue drop to ₹570.75 crore, and its segment result declined to ₹32.58 crore. Bedsheets revenue increased to ₹311.36 crore, with segment results more than doubling to ₹38.57 crore. Paper and chemicals revenue grew to ₹287.90 crore, though the segment result fell to ₹34.27 crore.

Expansion Plans

The board approved a ₹4,650 crore investment programme for capacity expansion and modernisation. Plans include adding 99,840 spindles at Budhni in Madhya Pradesh, modernising existing spindles, and replacing old rotors. A new yarn facility will come up in Dhar, Madhya Pradesh, with 1,99,680 spindles on 179.2 acres of leasehold land bought for ₹106.09 crore. The company will also add 336 looms to its sheeting business, increase paper capacity by 28 tonnes per day, and build a hybrid renewable energy project with 60 MW wind power and 20 MW solar power capacity.

Stock Movement And Expert Views

The stock opened at ₹23.11 on the BSE, hitting an intraday high of ₹25.18 and a low of ₹22.64. Gaurav Arora, Head of Research at SAHI, noted that the shares are testing resistance at the 50-week EMA near ₹25.02 and forming a falling wedge pattern, which points to easing selling pressure and a possible trend reversal.

Context

Companies often invest heavily in modernisation and renewable energy to cut long-term operating costs and boost production efficiency. Textile manufacturers regularly expand their spindle and loom capacities to meet shifting domestic and export demand across global markets.