Trident share price jumps as board clears Rs 4,650 crore expansion

Trident Limited, the textile and paper maker, said its board approved a Rs 4,650 crore expansion and modernisation plan at its meeting on Monday, 2 November 2026, alongside results for the July to September quarter. The largest part is a new yarn plant at Dhar in Madhya Pradesh costing about Rs 1,660 crore. The plan also covers its Budhni yarn plant, more looms for bed sheeting, extra paper capacity and a wind and solar power project. Trident's consolidated net profit for the quarter rose about 93% from a year earlier to Rs 176 crore, and its share price jumped after the announcement, with market reports putting the rise at up to 13%.

Most of the money goes into yarn. A spindle is the part of a spinning machine that twists cotton fibre into yarn; mills measure their size by the number of spindles they run. The new Dhar plant alone is planned at almost two lakh spindles, about twice the addition at Budhni. Building a new plant, rather than only adding machines to existing sites, is a bet on demand over the next three years.

The plan also shows how textile makers are trying to control costs. Power is a large expense for spinning and weaving, and the 80 MW wind and solar project is meant to supply part of that need. The modernisation at Budhni, which replaces older spindles and rotors with new ones, is aimed at making the same floor space produce more yarn with less waste.

For Madhya Pradesh, the investment adds to the state's textile base in Dhar and Budhni. The company's disclosure does not give a figure for new jobs, so how many people the plants will employ is not yet known. For shareholders, the question is whether the company can fund the plan while keeping its debt in check. In the September quarter, profit rose partly on inventory sales and better yarn margins, according to analysts' notes, and net debt fell by about Rs 304 crore. Analysts have flagged the execution of the Rs 4,650 crore plan as the main thing to watch.

Peepals calculation: the five parts add up to the total (1,660 + 1,022 + 1,018 + 296 + 654 = 4,650 crore). The Dhar plant is about 36% of the plan (1,660 / 4,650 = 0.357). The loom addition raises sheeting capacity by about 67% (336 / 504 = 0.667), while the paper addition is about 6% (28 / 479 = 0.058). Net debt fell about 30% in the quarter (from 1,025 to 722 crore: 303 / 1,025 = 0.296). Our calculation from the reported figures.

Short-term: the share price has reacted to the results and the plan; the company now has to arrange funding and begin work on the first phase at Budhni.

Long-term: if completed on time, the projects would make Trident a larger spinner and sheeting maker by 2029, with part of its power from its own renewable plant.

Who is affected: Trident's shareholders and lenders, workers and suppliers in Dhar and Budhni, cotton growers and traders who sell to large spinners, and buyers of Indian home textiles.

What to watch next: completion of the Budhni yarn expansion, the first project due, by 31 December 2027.

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