Trident Ltd – Textile Titan Weaving Growth Amid Global Tailwinds

Introduction: Trident Ltd – A Legacy of Threads and Innovation

Founded in 1990, Trident Ltd has grown from a modest textile manufacturer in Punjab to one of India’s most prominent diversified conglomerates. With a sharp edge in home textiles, yarn, paper, and chemicals, Trident is now a globally recognized name. The company has become a key beneficiary of India’s policy tailwinds in the textile sector, particularly after the recent India–UK Free Trade Agreement (FTA).

As global demand for high-quality, sustainable textiles rises, Trident is actively reshaping its growth strategy to capitalize on international opportunities while navigating commodity price volatility and supply chain disruptions.

📌 Company Snapshot

🏭 Business Verticals: A Diversified Revenue Engine

Trident Ltd operates in four major verticals:

1. Home Textiles – World’s leading manufacturer of terry towels, bed linen, and bath textiles. Clients include global retail giants.

2. Yarn – Export-oriented spinning operations supplying premium yarn to multiple markets.

3. Paper & Stationery – Known for its eco-friendly wheat-straw-based paper, Trident is a green innovation leader.

4. Chemicals & Captive Power – Manufactures sulphuric acid and uses bio-waste to generate energy, reducing carbon footprint.

📈 Q1 FY26 Performance: Cotton Costs Dent Profits, But Revenue Rebounds

Despite facing headwinds from high cotton prices, Trident Ltd reported a revenue of ₹1,898 crore in Q1 FY26, marking a 17% YoY growth. However, profit after tax (PAT) dropped 21% YoY to ₹73.7 crore, primarily due to input cost inflation and margin pressure.

🔍 “The management expects raw material pricing pressures to ease by Q2, supported by favorable monsoon forecasts and improved cotton yields.”

Segment Performance:

• Home Textiles revenue: ₹1,110 crore (+12% YoY)

• Paper Division: ₹335 crore (+19% YoY)

• Yarn & Spinning: ₹340 crore (+9% YoY)

🚀 FTA Catalyst: Export Boom on the Horizon

Trident was among the top textile gainers post the India–UK FTA announcement in mid-July 2025. The stock surged nearly 6% on hopes of reduced duties and increased market access.

🧶 Analysts estimate that the FTA could double Trident’s textile exports to Europe over the next 5 years.

The UK is one of the biggest consumers of premium home textiles, and Trident, with its eco-certified factories and global design studios, is well-positioned to seize this opportunity.

📊 Technical Chart: Bullish Crossover Approaching?

Chart Analysis – Daily Timeframe (NSE: TRIDENT):

• Current Price: ₹33.13

• 50-Day EMA: ₹31.40 (support zone)

• 200-Day EMA: ₹28.70

• MACD: Bullish crossover forming

• RSI: 59 – positive momentum, not yet overbought

• Volume Trend: Spikes near ₹33.50 resistance, indicating accumulation

🔔 A breakout above ₹34.20 could trigger a fresh rally toward ₹38.

💹 Brokerage Outlook

• JM Financial: Maintains BUY rating with a target price of ₹38

• Motilal Oswal: Neutral with focus on margin recovery in FY26 H2

• ICICI Direct: Positive view on export-led growth and sustainable manufacturing

🌿 Sustainability Edge: Eco-Friendly Manufacturing

Trident’s wheat-straw-based paper is globally appreciated as a green alternative. The company has also joined the International Textile Manufacturers Federation (ITMF), reinforcing its commitment to sustainable practices.

It uses zero liquid discharge (ZLD) in most plants and is actively reducing energy consumption per unit of production. These efforts strengthen its positioning in ESG-sensitive export markets.

🧠 Strategic Moves in FY26

• New production lines for premium bath linen and hotel-grade textiles

• Expansion of retail presence under “Trident Home” in Tier 1 & Tier 2 cities

• Investments in AI-based quality control systems

• Focus on value-added yarn exports and e-commerce direct sales

🛍️ Why Retail Investors Are Watching Trident

✅ Affordable stock with midcap growth potential
✅ Low debt and strong export exposure
✅ Rising ESG focus and sustainable brand identity
✅ Attractive valuations compared to global peers
✅ Beneficiary of government PLI schemes for textiles

📌 Key Risks to Watch

⚠️ Rising cotton prices or supply shocks
⚠️ Global recessionary risks in retail demand
⚠️ Margin compression from discounting in export markets
⚠️ Competition from Bangladesh, Vietnam on cost fronts

📝 Conclusion: Threads of Opportunity, Woven with Vision

Trident Ltd is more than just a textile company – it’s a story of Indian manufacturing resilience, innovation, and green growth. With global trade opportunities opening up and the company continuing to invest in quality and technology, it’s weaving a bright future for shareholders.

Retail investors seeking an export-driven, value-led, sustainable textile play could find Trident a rewarding long-term portfolio addition.

📉 Stock Market Disclaimer

Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.