Tube Investments of India reported strong Q3 FY2026 results, with standalone revenue reaching Rs.2,152 Crores, up 26% in PBT before exceptional items. The company declared an interim dividend of Rs.2 per share. Management confirmed dedication to doubling down on the TI2 businesses (TI Clean Mobility, TI Medical, 3xper), despite longer-than-expected timelines, while TI1 core businesses showed robust organic growth.
Q3 FY2026 Financial Highlights
The Board of Tube Investments of India met on February 4, 2026, to approve financial results for the quarter ending December 31, 2025. An interim dividend of Rs.2 per share was declared for FY 2025-2026. Standalone revenue for Q3 stood at Rs.2,152 Crores, compared to Rs.1,910 Crores year-on-year. Profit Before Tax (PBT) before exceptional items grew by 26% to Rs.268 Crores. Annualized Return on Capital Employed (ROIC) stood at 49%.
Consolidated Performance and Segment Contribution
On a consolidated basis, revenue reached Rs.5,801 Crores (vs. Rs.4,812 Crores previously). Profit before tax, exceptional items, and share of profit was Rs.502 Crores. Specific segment performance showed:
- Engineering Business: Revenue increased to Rs.1,438 Crores (vs. Rs.1,212 Crores), with PBIT at Rs.196 Crores.
- Metal Formed Business: Revenue was Rs.408 Crores, and PBIT was Rs.46 Crores.
- Mobility Business (TI Clean Mobility): Revenue grew to Rs.183 Crores, turning PBIT positive at Rs.4 Crores (vs. a loss of Rs.0.8 Crores).
- Other Businesses: Revenue was Rs.214 Crores, with PBIT at Rs.19 Crores.
- CG Power: Registered consolidated revenue of Rs.3,175 Crores and profit of Rs.420 Crores for the quarter.
- Shanti Gears: Revenue declined to Rs.117 Crores (vs. Rs.158 Crores), with profit at Rs.23 Crores.
Outlook and Strategic Focus on TI2
Management emphasized that the time is right to double down on the TI2 businesses: TI Clean Mobility, TI Medical, and 3xper, despite acknowledging that the process is taking longer than initially anticipated. The conviction remains strong that IC components will transition to EV platforms. Management stated they are willing to invest incrementally Rs.500 Crores to Rs.750 Crores into the EV business from the parent balance sheet. The 3xper business faced delays due to facility permissions in Andhra Pradesh, impacting production timelines by nearly 18 months.
Engineering and Export Commentary
The core engineering business saw strong domestic growth, offsetting weaker export performance due to European demand and US tariffs (Section 232 duty remains at 50%). Management confirmed that domestic organic growth in TI1 reached double digits, exceeding the expected 6% to 9% range. New plant capacity expansions (Nasik and Phaltan) are expected to be fully utilized in FY2028, with FY2027 capacity already covered.
Electric Vehicle Segment Update
Quarter 3 EV volumes were reported as follows: Heavy Trucks (M&HCV) at 56 units, three-wheelers at 1,816 units, small commercial vehicles (SCV) at 301 units, and e-tractors at 29 units. The loss incurred by the EV division in the quarter was Rs.164.31 Crores. Management sees the heavy vehicle and three-wheeler segments as the primary candidates for reaching breakeven within the next 12 to 18 months.
Q&A Takeaways
Regarding potential acquisitions, management noted that work is continuous, but there is no definitive timeline. In the Metal Formed division, efforts are underway to build capabilities for new customers to de-risk dependency on the single Korean client. For Shanthi Gears, the sequential revenue decline is attributed to a temporary slowdown in the order book, and the company is committed to protecting margins.
Source: BSE
