Tube Investments of India Ltd held its Q2 FY27 earnings call on November 05, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.
Strong Top Line, Flat Core Profitability on Commodity Drag
Standalone revenue of Rs.2,710 Cr — up from Rs.2,119 Cr in Q2 FY 2025-2026; standalone PBT of Rs.253 Cr vs Rs.250 Cr, indicating near-flat profit on a much larger base.
Consolidated revenue of Rs.7,330 Cr — vs Rs.5,523 Cr in Q2 FY 2025-2026; profit before associate/JV exception items and tax of Rs.643 Cr vs Rs.459 Cr.
~15% volume growth at the TA level — MD Mukesh Ahuja attributed the remainder of standalone growth to raw material (HRC) price pass-through rather than real demand-led growth.
Standalone ROIC flat YoY at 44% — free cash flow for the quarter was Rs.167 Cr.
Core EBITDA and PAT flat despite 16% volume growth — management indicated a delayed cost pass-through expected to flow through over H2 FY 2026-2027.
Operating margins stagnating at 9-10% — flagged by analyst Gopalakrishna Subramanian, who also noted the share price has fallen ~50% from the 4,600 level to the 2,300 level between October 2024 and the call.
Engineering Leads; Shanti Gears the Only Decliner
Engineering division revenue of Rs.1,828 Cr — vs Rs.1,382 Cr in Q2 FY 2025-2026 (~32% growth per management); PBIT of Rs.171 Cr vs Rs.164 Cr.
Metal Form Products revenue of Rs.473 Cr — vs Rs.408 Cr (~16% growth); PBIT of Rs.49 Cr vs Rs.44 Cr.
Mobility revenue of Rs.247 Cr — vs Rs.194 Cr; PBIT improved to Rs.8 Cr from Rs.4 Cr.
Others segment revenue of Rs.260 Cr — vs Rs.227 Cr; PBIT of Rs.20 Cr vs Rs.18 Cr.
CG Power (56.2% held subsidiary) revenue of Rs.3,802 Cr — vs Rs.2,923 Cr; PBT of Rs.559 Cr vs Rs.388 Cr.
Shanti Gears (73.16% held) was the only decliner — revenue of Rs.128 Cr vs Rs.132 Cr and PBT of Rs.20 Cr vs Rs.29 Cr in Q2 FY 2025-2026.
Engineering and metal form divisions came in below expectations — due to continuous commodity price increases; price resets with customers/OEMs carry a retro effect and take one to two quarters to settle.
Management Commits to H2 FY 2026-2027 Recovery
"100% yes" on recovery — Mukesh Ahuja confirmed the H1 FY 2026-2027 EBITDA/profit shortfall will be recovered in absolute terms over H2 FY 2026-2027 and FY 2027-2028; one or two quarters are expected to run above normal once full recovery completes (period unspecified).
Full price-reset recovery expected in Q3–Q4 FY 2026-2027 — management is confident retro price resets with customers/OEMs will settle over the next one to two quarters; price increases are at various stages (midway) across engineering, MFPD and IC businesses.
TI CMPL cost base spiked to ~Rs.622 Cr in Q2 FY 2026-2027 — computed by analyst Salil Desai (Marcellus) at ~75% above the prior 3-4 quarter run rate; Jalaj attributed the spike to very high cell price increases (where CMPL has complete dependence), adverse rupee exchange rate, and commodity inflation raising BOM costs across all four businesses.
CMPL mitigation levers — possible price corrections/deal-by-deal realization improvements, intensified BOM cost reduction, and entry into a few longer-term supplier arrangements.
Medical margin close to 8% in Q2 FY 2026-2027 — after adjusting for Rs.4 Cr of amortization; management said the business will take time to stabilize and its perspective is "higher double-digit" profitability margins (period unspecified).
Rs.4 Cr per-quarter fair valuation adjustment — CFO A. N. Mayappan noted it is booked separately from business operations; adjusting for it, medical profitability is "much better."
Volume Ramp Across All Four Segments, Breakeven Roadmap Intact
Truck volumes of 311 in Q2 FY 2026-2027 vs 86 in Q1 — three-wheelers 2,242 vs 1,924; SCVs 483 vs 347; e-tractors 50 vs 22 (per Jalaj). Jalaj stated he is not happy with any of the four numbers — all should be higher.
26% truck market share — in a highly competitive segment with 11-12 players; truck and SUV business at about 25% share; ~25% share of e-tractor registrations across 27 HP and 45 HP segments in H1 FY 2026-2027.
Truck EBITDA breakeven targeted in Q4 FY 2026-2027 — two more businesses may reach EBITDA breakeven in Q4 FY 2027-2028; organization-level EBITDA breakeven is the first target, followed by PAT profitability (no timeline given).
1 billion revenue aspiration by 2030 reaffirmed — set at the consolidated TICMPL level with all businesses, including long haul and existing businesses, contributing.
HCV use-case diversification — cement dependence reduced to 60% of trucks on road, with 40% from non-cement applications (steel, mining, chemicals, sugar, retail, tyre movement); 80-90 vehicles seeded into metals/steel; mining added as a new use case in Q2 FY 2026-2027.
EV tailwinds cited by management — industry e-3W penetration upwards of 50% in Q2 FY 2026-2027; H1 FY 2026-2027 industry big-truck volumes almost 170% of FY 2025-2026 full-year volumes; H1 e-SCV volumes almost equal to FY 2025-2026 full-year volumes.
Exponent fast-charging partnership — enables 15-minute charging for three-wheelers; rollout dependent on Exponent's city presence, launching first in Bangalore, then Delhi NCR and Ahmedabad, before scaling nationally.
Emerging Chinese heavy-truck competitor (larger battery capacity) viewed as competition, not a risk — Jalaj noted electric truck penetration within the overall diesel truck pie is still in the low single digits and more players will expand the pie; in tractors, only 2-3 players compete today, with more expected within a couple of years.
TI Medical (Lotus) growing 20%+ in FY 2026-2027 — Q2 FY 2026-2027 growth of 20%; acquired ~3 years ago with subsequent investment in sutures; management remains bullish.
CDMO commercial supplies expected from about Q4 FY 2026-2027 — regulatory approval process may take about 1 year (i.e., FY 2027-2028); full scale-up only once approval comes through, with good revenue growth expected in about a year (FY 2027-2028).
Semi-commercial CDMO plant commissioned — quantities already supplied to customers; one product's European customer (calendar-year financial year) has given a projection for CY 2027; clean room commissioned with movement expected within 3-4 weeks (Q3 FY 2026-2027).
Medical plastics (cannula/canister) startup acquired — management hopeful the manpower/sales team will be in place by end of Q3 FY 2026-2027, after which focus shifts to raising capacity utilization.
Small startup acquired in metal injection molding (MIM) — further investment calls will follow once the business is understood.
EV moat factors cited — more than 1,000 e-SCVs and roughly 2,300 e-tractors already on the road; 5-6 years of accumulated market wisdom, supplier relationships, dealer network, exclusive EV focus, and being an indigenous Indian company availing Government of India benefits/subsidies that promote indigenous design and development.
FCF-to-PAT target of ~85% reiterated — (period unspecified) after capex but excluding investments into subsidiaries; on course though quarterly plus/minus deviations are possible; higher core capex from potential adjacencies could cause a deviation in that year if materialized.
Rs.412 Cr of incremental investments into subsidiaries in Q2 FY 2026-2027 — Rs.250 Cr into TI CMPL and Rs.78 Cr into Shanti Gears (CFO A. N. Mayappan).
Entire Rs.250 Cr CCPS infusion into TI-CMPL came from TI alone — the private equity partner, which earlier invested Rs.250 Cr, has not invested any money since; CCPS term change is clarificatory with no change in accounting impact or investor returns.
TI CMPL liquidity of Rs.350 Cr cash in hand — sufficient for FY 2026-2027 with no fund raise needed; FY 2027-2028 requirements to be assessed, with an update expected by Q4 FY 2026-2027.
Exports at ~15% of TI-level revenues in Q2 FY 2026-2027 — the earlier endeavor to grow exports toward ~20% of revenues (period unspecified) did not materialize; management sees significant headroom contingent on geopolitical stabilization, with all exports flowing from the engineering division and other businesses.
Higher double-digit consolidated growth guided — in both revenue and bottom line (period unspecified), consistent with past guidance; T1-T2-T3 strategy (core focus, incubation, acquisitions) reiterated; on electronics acquisitions there is "nothing on the table as of now."
Share price recovery is "a question of time" — per Ahuja, as investor confidence builds with revenue and bottom-line growth; no forward guidance or outlook was provided in the opening remarks.
Disclaimer: This earnings call summary is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.
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