Tube Investments Q1 FY27 Earnings Call — Analysis (NSE: TIINDIA)
Core engineering volume grew 17% YoY, steel cost pass-through pressured margins but management expects full recovery; EV losses narrowing with highest-ever turnover.
Result quality: watch — Margin pressure. Management sentiment: neutral.
The take
Q1FY27 Consolidated Revenue ₹6,215 Cr ( +17.1% YoY ) .
Results
Standalone revenue ₹2,366 Cr +18% YoY; PBT ₹213 Cr (down 4% YoY); consolidated revenue ₹6,215 Cr +17% YoY; PBT before JV/exceptional ₹461 Cr +3% YoY; engineering PBIT flat, metal formed PBIT down 24% YoY due to steel cost lag.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Standalone Revenue | ₹2,366 Cr | +18% | yoy · Q1FY27 · against ₹2,007 Cr in Q1FY26 |
| Standalone PBT | ₹213 Cr | -4% | yoy · Q1FY27 · against ₹222 Cr in Q1FY26 |
| Engineering Revenue | ₹1,566 Cr | +20.6% | yoy · Q1FY27 · vs ₹1,298 Cr |
| Engineering PBIT | ₹153 Cr | +flat | yoy · Q1FY27 · same as Q1FY26 ₹153 Cr |
| Metal Formed Revenue | ₹408 Cr | +11.5% | yoy · Q1FY27 · vs ₹366 Cr |
| Metal Formed PBIT | ₹28 Cr | -24.3% | yoy · Q1FY27 · vs ₹37 Cr |
| Mobility Revenue | ₹250 Cr | +26.3% | yoy · Q1FY27 · vs ₹198 Cr |
| Mobility PBIT | ₹9 Cr | +28.6% | yoy · Q1FY27 · vs ₹7 Cr |
| Others Revenue | ₹256 Cr | +8.5% | yoy · Q1FY27 · vs ₹236 Cr |
| Others PBIT | ₹21 Cr | +23.5% | yoy · Q1FY27 · vs ₹17 Cr |
| Consolidated Revenue | ₹6,215 Cr | +17.1% | yoy · Q1FY27 · against ₹5,309 Cr |
| Consolidated PBT (before JV & exceptional) | ₹461 Cr | +2.7% | yoy · Q1FY27 · vs ₹449 Cr |
| CG Power Revenue | ₹3,281 Cr | +14% | yoy · Q1FY27 · vs ₹2,878 Cr |
| CG Power PBT | ₹423 Cr | +16.2% | yoy · Q1FY27 · vs ₹364 Cr |
| Shanthi Gears Revenue | ₹115 Cr | -14.8% | yoy · Q1FY27 · vs ₹135 Cr |
| Shanthi Gears PBT | ₹14 Cr | -54.8% | yoy · Q1FY27 · vs ₹31 Cr |
| Free Cash Flow | ₹174 Cr | +na | point_in_time · Q1FY27 · for Q1FY27 |
| Annualized ROIC | 41% | +200bps | yoy · Q1FY27 · vs 39% in Q1FY26 |
| Engineering Volume Growth | 17% | +na | yoy · Q1FY27 · volume growth over Q1FY26 |
| Exports as % of Revenue | 14% | +na | point_in_time · Q1FY27 · of TI revenue in Q1FY27 |
Guidance
Margin normalisation expected in coming quarters as steel price increases are fully recovered; capex ₹350 Cr for TI standalone, ₹100 Cr for Shanthi Gears in FY27; EV segment peak losses behind, one business to break even this year.
Key themes
Steel cost pass-through and EV breakeven path
Operational commentary
- EV segment (TI Clean Mobility) recorded highest-ever quarterly turnover ₹240 Cr; volumes: HCV trucks 86, 3W 1,924, SCV 347, tractors 22; three-wheeler billing exceeded Vahan registrations due to 30-45 day lag; management stated quarterly losses have peaked, expecting one EV business to break even in FY27 and two in FY28.
- Engineering volume grew 17% YoY with broad-based auto demand; export double-digit growth, exports now 14% of TI revenue; management sees demand bullish next 1–2 quarters.
- TI Medical core surgical business grew ~20% in Q1; acquired IV cannula plant (Medicura) commissioning Aug–Sep 2026, revenue expected from Q2; 20% annual revenue growth target with profitability reiterated.
- CDMO (3xper): 200 KL intermediate capacity commissioned, validation batches underway; clean room to commission in 30–40 days; semi-commercial plant supplying commercial OTC product to Europe; facility inspection expected next financial year (FY28); ~15 active customers.
- Cycles business margin improvement plan: at least 2 percentage points expansion targeted in FY27 on the back of strong Q1 and share gains.
- Steel cost pass-through: commodity steel price increases in Q4FY26 and Q1FY27 compressed margins; full recovery expected with a 2–3 quarter lag; non-steel inflation (fuel, freight) under discussion with OEMs, 'hopeful of majority recovery'.
- Subsidiaries: CG Power revenue +14% YoY, PBT +16%; Shanthi Gears revenue -15%, PBT -55% due to demand weakness.
Research and educational content only. Not investment advice.