Tube Investments of India Ltd (TIINDIA) Q1 FY27 Earnings Call: EV Peak Losses Passed, Cycles Margin to Expand 200 bps

Tube Investments of India Ltd held its Q1 FY27 earnings call on August 14, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Standalone Revenue Rises 18% YoY; ROIC Improves to 41%

• Standalone revenue of Rs.2,366 crore — up from Rs.2,007 crore in Q1 FY25-26, reflecting 17.9% YoY growth.
• Consolidated revenue of Rs.6,215 crore — versus Rs.5,309 crore in Q1 FY25-26, driven by broad-based growth across segments including CG Power (Rs.3,281 crore).
• Standalone PBT of Rs.213 crore — marginally lower than Rs.222 crore YoY, as volume gains were partly offset by input cost headwinds.
• Annualized ROIC of 41% — improved from 39% in Q1 FY25-26, reinforcing capital efficiency.
• Free cash flow of Rs.174 crore — generated in Q1 FY26-27, underscoring strong cash conversion.

Engineering Volumes Lead; MFP and Shanthi Gears Under Pressure

• Engineering segment revenue of Rs.1,566 crore — against Rs.1,298 crore YoY, but PBIT remained flat at Rs.153 crore, reflecting margin compression from steel cost inflation.
• Metal formed products revenue of Rs.408 crore — up from Rs.366 crore; PBIT slipped to Rs.28 crore from Rs.37 crore, with railways and the Hyundai-focused business remaining drags.
• Mobility segment revenue of Rs.250 crore — versus Rs.198 crore YoY; PBIT improved to Rs.9 crore from Rs.7 crore, supported by EV volume ramp-up.
• Others segment revenue of Rs.256 crore — up from Rs.236 crore; PBIT of Rs.21 crore versus Rs.17 crore, including cycles, TI Medical, CDMO, and Orange additive manufacturing.
• Subsidiary CG Power reported consolidated revenue of Rs.3,281 crore — against Rs.2,878 crore, with PBT of Rs.423 crore versus Rs.364 crore, contributing significantly to group profitability.
• Shanthi Gears revenue declined to Rs.115 crore — from Rs.135 crore, with PBT nearly halving to Rs.14 crore from Rs.31 crore, marking a weak quarter.

Record E-Mobility Turnover; Peak Losses Likely Behind

• E-mobility posted highest-ever turnover of ~Rs.240 crore in Q1 FY26-27, with negative EBITDA narrowing by ~Rs.40-50 crore, driven entirely by volume expansion with no one-off benefits.
• Three-wheeler billing reached 1,924 units in Q1 FY26-27, up 64% QoQ from Q4 FY25-26 (1,200 units), recovering from prior production challenges.
• Big trucks: 86 units, small commercial vehicles: 347 units, tractors: 22 units — broad-based volume growth across the EV portfolio in Q1 FY26-27.
• EV business likely passed peak quarterly losses as of Q1 FY26-27; management guided one EV entity to break even in FY26-27 and two more in FY27-28.
• Jayem (EV services) posted negative EBITDA in FY25-26 despite 30-35% revenue growth; a battery assembly line is being set up in FY26-27 for in-house consumption initially, with potential external sales later.
• Three external investors hold CCPs in TI Clean Mobility — conversion contingent on an IPO with no fixed timeline; IPO to be pursued when market conditions, revenue traction, and profitability improve (period unspecified).

Steel Cost Pass-Through Underway; Cycles Margin to Expand 200 bps

• Standalone margin pressure in Q1 FY26-27 — attributed to commodity steel price increases in Q4 FY25-26 and Q1 FY26-27, which are recovered with a lag of 2-3 quarters.
• Management expressed confidence in full steel cost recovery in the "coming quarters" of FY26-27, with double-digit margins and sustained double-digit improvement expected post recovery; under-recovery was not quantified.
• Active discussions with OEMs to recover non-steel inflation (fuel, freight) caused by the West Asia crisis; management hopeful of recovering the majority in Q2 FY26-27.
• Cycles business margins to improve by at least 200 bps for full FY26-27, driven by strong Q1 volume growth from seasonal demand and improved market share.
• MFP greenfield plant expansion in the western region delayed by 6 months — limiting near-term capacity growth for the division.

TI Medical on 20% Growth Path; CDMO Validation Underway

• TI Medical core surgical business grew ~20% in Q1 FY26-27 — management confident of maintaining 20% YoY revenue growth with double-digit profitability; FY25-26 revenue was ~Rs.200 crore.
• IV cannula business acquisition completed in March 2026 — revenue contribution expected from Q2 FY26-27 (August/September).
• CDMO: 200 KL reactor capacity commissioned — validation batches ongoing; clean room expected in 30-40 days (end of Q2 FY26-27); semi-commercial plant already supplying a European OTC product globally, working with ~15 customers.
• Site inspection for commercial CDMO facility expected in FY27-28 — management confirmed on track to achieve revised projections.
• Total group capex (ex-CG Power) of ~Rs.600-700 crore in FY26-27 — comprising Tube Investments ~Rs.350 crore, Shanthi Gears ~Rs.100 crore, and spending across engineering, MFPD, TI Medical, and T-Expert CDMO.
• Orange additive manufacturing under "other" segment — management plans 1-2 quarters of market study before providing scaling guidance.
• Opto-electric lenses business — no inroads yet; pursuing customer approvals for exports; domestic lens/camera module manufacturing not started.

Engineering Demand Bullish; Exports Momentum Continues

• Engineering segment volume grew 17% in Q1 FY26-27 — management expects bullish demand to continue for at least Q2-Q3 FY26-27.
• Exports posted double-digit growth in Q1 FY26-27 — contributing ~14% of total company revenue; momentum expected to continue barring geopolitical disruptions.
• Domestic demand robust across all vehicle segments — except Hyundai, which is working on new model developments and expected to contribute later.
• Cell prices expected to remain elevated for Q2 and Q3 FY26-27 — driven by "Chinese government lifting tax exemptions on cell manufacturers and rising global demand for battery energy storage systems (BESS)"; mitigation includes pre-booking and locking prices with suppliers.
• First consignment of 100+ three-wheelers exported to Nepal in Q1 FY26-27; Sri Lanka, Tanzania, Ethiopia at exploratory stage.
• NCR EV policy expected to drive "huge traction" — management expects momentum once the policy becomes mandatory in "a couple of months"; ramping up dealer presence across NCR.
• Rs.250 crore already infused into EV subsidiaries in Q4 FY25-26 — another Rs.250 crore planned in Q3 FY26-27, with total committed infusion of Rs.750 crore over time.