Triveni Engineering and Industries Ltd

- The company expects to see a decline in its cost of funds over the next few quarters due to its debt rating. - This is anticipated to be beneficial when funding needs arise, implying plans for fundraising through debt. - No explicit mention of new equity fundraising was made in the discussed sections. - The focus seems to be on managing capital allocation efficiently across existing and upcoming projects. - There is ongoing investment in capacity expansions (e.g., gear business capacity increased to ₹700 crore by September 2026), which may influence future funding requirements.

- Gear business CapEx to expand capacity to ₹700 crore, on track for completion by September 2026 (Page 14). - Defence bay manufacturing facility CapEx in Mysore, with major CapEx (~₹150 crore) pending for completion within the current fiscal year; manufacturing facility expected operable this calendar year (Page 14). - Small capital investments planned to improve steam economies in distillation for cost reduction in the near future, execution timed with distillery shutdown schedules (Page 16). - No major CapEx in water business; operates an asset-light model with outsourced manufacturing. Focus is on selecting good projects domestically and overseas for better returns (Page 12). - Investments related to increasing production capacity to support ethanol blending growth and diversification into Alcobev and country liquor businesses (Pages 13-14).

- The company anticipates growth in several areas including country liquor (Alcobev business) with very good double-digit profitable growth. - IMFL business is in the incubation stage and expected to take a couple of years before profitability and notable revenue generation. - Expansion in gear business capacity to ₹700 crore turnover is on track, expected by September 2026. - Defence segment expected to ramp up over the next 24 months, but specific revenue guidance is not provided due to order unpredictability. - Water business expects good opportunities with increasing enquiries and funding from state and central governments; targeting domestic and foreign projects. - Ethanol blending initiatives (targeting 27%) and E85 petrol pumps across India are positive for ethanol production growth. - New products and international market expansion in power transmission business expected to drive future revenue. - UPML market entry commenced in June 2024, with potential to increase volumes in the near term.

- Management expects margin improvement in distillery business due to cost optimization, better maize procurement, and steam economy improvements over the next few quarters. - Sugar business margins are anticipated to improve with better cane productivity, recovery, and continued focus on reducing cost of production; however, full margin restoration to 2022-23 levels will take time. - Ethanol blending is set to increase to 27%, with government support and new BIS standards, driving volume growth and better margins in the ethanol/distillery segment. - Engineering business outlook is positive with new product launches, international market expansion, and defence orders scheduled over the next 1-2 years, supporting improved profitability. - Capacity expansions in gear and defence segments planned for completion by September 2026 suggest potential revenue and earnings growth in FY27-28. - Overall, the company expects a gradual return to prior profitability levels with operational improvements and favorable policy support over the next 1-3 years.

- Power Transmission Business order book stands at ₹423 crore. - Of this, ₹182 crore pertains to long-duration orders; roughly 80% of these are related to defence. - Remaining orders (approximately ₹241 crore) are expected to be executed within FY 26. - Typical order-to-delivery cycle is about six months or less for aftermarket orders. - Significant order execution expected in Q2, Q3, and Q4 FY 26 to meet internal budgeted numbers. - Defence orders to be executed over the next 24 months. - Expansion CapEx for gear capacity to ₹700 crore is on schedule for completion by September 2026. - Water business has good opportunity pipeline with enquiries expected to convert into commercial bids.