Trident shares are on fire today. In early trade on Friday, Trident shares surged nearly 7% to hit ₹33.66. The rally came right after the company posted its Q1 FY26 results, and investors seem to love what they saw.
Despite a slight dip in revenue, Trident’s profit almost doubled. The home textiles and paper products company reported a net profit of ₹140 crore, up 89.7% compared to ₹73.8 crore in the same quarter last year. That’s a big jump in a tough market.
But wait — revenue actually fell 2.1%, landing at ₹1,706.8 crore. So why is the stock flying?
Margins Saved the Day
The answer lies in the margins. Trident managed to cut its total expenses by around 7%. That means it spent less and earned more from what it sold. The result? A big boost in profitability.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) went up by 29.3% to ₹291 crore. The operating margin improved from 12.9% to 17% compared to last year.
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Cotton Prices Helped Too
Another reason for the strong performance was the softening of cotton prices. Last year, cotton prices had spiked by 18%. But in recent months, they have come down. That helped Trident manage its costs better, especially since cotton is a key raw material for the company.
Trident shares also saw huge trading volumes. Over 5 crore shares changed hands in morning trade. This is much higher than the usual daily average of about 96 lakh shares. Clearly, investors are betting big on Trident’s improved performance.
To add to the excitement, the company’s board has approved a plan to raise up to ₹500 crore. This will be done through non-convertible debentures (NCDs), either publicly or privately, in one or more parts — but only after shareholder approval.
So, What’s the Market Saying?
Even though Trident saw a drop in sales, the stock is up because of smart cost-cutting and better profit margins. Investors are reacting to strong numbers and confident management moves.
Trident shares may not be making big revenue jumps right now, but they’re proving that profits, not just sales, matter.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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