Skip to content

    Tembo Global Industries Q1 FY27 earnings call

    TEMBO
    Capital Goods·19 Aug 2026
    Management Summary

    Tembo Global Industries reported a strong Q1 FY27, driven by its high-margin engineering and EPC segment, which saw revenue grow 21.9% YoY to INR 302 crores and PAT increase 55.3% YoY to INR 31 crores. The company expanded its EBITDA margin by 493 bps to 16.3% and is progressing with strategic initiatives in solar, defense, and aerospace, including securing an ammunition manufacturing license and establishing a UAV joint venture. With a robust order book of INR 1,500 crores and a pipeline of INR 2,400 crores, Tembo remains confident in achieving its FY27 revenue guidance of INR 1,600 crores.

    Highlights

    5

    • Revenue for Q1 FY27 rose by 21.9% year-on-year to INR 302 crores.

    • PAT grew by 55.3% year-on-year to INR 31 crores.

    • EBITDA increased by 74.8% year-on-year to INR 49.2 crores, with EBITDA margin expanding by 493 basis points to 16.3%.

    • The company secured an ammunition manufacturing license and announced a strategic international joint venture for UAV technologies, targeting INR 100 crores in revenue for its first calendar year.

    • A robust order book of INR 1,500 crores and a bidding pipeline of INR 2,400 crores provide strong revenue visibility.

    Concerns

    2

    • Management declined to provide a detailed segment-wise order book breakdown for the INR 1,500 crore order book.

    • The capital structure for the aerospace joint venture is still in process and yet to be finalized.

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue₹302 Cr+21.9%YoY
    2. 02PAT₹31 Cr+55.3%YoY
    3. 03EBITDA₹49.2 Cr+74.8%YoY
    4. 04EBITDA Margin16.3%
    5. 05PAT Margin10.3%

    Segment breakdown

    Engineering and EPC
    99% Revenue Mix Contribution1.7% YoY Growth
    Textiles
    100% Revenue Mix Contribution
    List

    Order Book

    high confidence

    Total Value

    ₹ 1,500 crores

    as of 2026-06-30

    quantified

    Pipeline

    other

    orders which are bidding in pipeline

    "The company has a strong order book and a growing bidding pipeline, providing a solid platform for sustained growth."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    debt, internal accruals and equity participations

    Debt

    Gross ₹400 crores

    M&A

    Tembo Classic Engineering Pvt. Ltd.

    acquisition · closed

    M&A

    JR UAV Limited JV

    joint venture · signed

    Guidance & targets

    12
    CategoryTargetPriority
    Revenue
    FY27 Revenue Guidance
    INR 1,600 crores
    		High
    Revenue
    Defense Arms and Ammunition Revenue
    INR 300 crores to INR 350 crores
    		High
    Revenue
    Aerospace JV Revenue
    INR 100 crores
    		High
    Revenue
    Amravati/Vasai JV Combined Revenue
    INR 70 crores to INR 100 crores
    		High
    Revenue
    Solar Revenue Contribution
    INR 50 crores to INR 60 crores
    		High
    Revenue
    Solar Peak Revenue Contribution
    INR 80 crores to INR 90 crores
    		High
    Profitability
    Defense PAT Margin
    30% to 35%
    		High
    Profitability
    Defense EBITDA Margin
    45% to 50%
    		High
    Profitability
    Company-level EBITDA Margin
    16% to 18%
    		High
    Capacity
    Vasai Facility Capacity Utilization
    65% to 70%
    		High
    Capacity
    Vasai Facility Peak Utilization
    peak utilization
    		Medium
    Working Capital
    Working Capital Days
    80 to 90 days
    		High

    What to watch in Q2 FY27

    5

    Vasai facility capacity utilization

    by FY end (Q4 FY27)
    Current35-40%
    Target65-70%

    Why it matters

    Tracking the ramp-up of the new Vasai facility is crucial for assessing the company's ability to meet its growth targets and operational efficiency improvements.

    currently... around 35%-40% of capacity utilization. And... by the year end of FY, we look at around 65%-70% of capacity.

    Risks & concerns

    3
    RiskSeverity

    Lack of detailed order book breakdown

    Management declined to provide a segment-wise breakdown of the INR 1,500 crore order book, making it difficult for investors to assess granular growth drivers. — Analyst acknowledged

    medium

    Undecided capital structure for Aerospace JV

    The capital structure for the newly announced aerospace joint venture is still in process, which could lead to future adjustments or delays in finalization. — Analyst acknowledged

    low

    Potential need for future fundraise

    Management did not confirm or deny the need for future fundraises despite recent capital injections and ambitious growth plans, leaving uncertainty. — Analyst deflected

    low

    Q&A highlights

    6

    “It is not possible. Honestly, it is not possible at the moment. So, during the next guidance and the next quarter, it would be very much visible how we are going to act.”

    Management declined to provide a detailed breakdown of the INR 1,500 crore order book, which is a key metric for assessing granular growth drivers in the capital goods sector.

    asked by Nitin Babulal Gandhi

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance Driven by EPC Segment

    Tembo Global Industries reported robust financial results for Q1 FY27, with revenue growing 21.9% year-on-year to INR 302 crores. Profit After Tax (PAT) saw a significant increase of 55.3% year-on-year, reaching INR 31 crores. This strong performance was primarily fueled by the high-margin engineering and EPC segment, which now contributes 99% to the overall revenue mix, a substantial increase from 44% in Q1 FY26.

    02

    Margin Expansion and Operational Efficiency

    The company demonstrated strong profitability, with EBITDA increasing by 74.8% year-on-year to INR 49.2 crores. This led to an impressive EBITDA margin expansion of 493 basis points, reaching 16.3%. PAT margins also improved to 10.3% from 8.1% in the corresponding quarter last year, reflecting enhanced operational efficiencies, better product mix, and disciplined cost management.

    03

    Robust Order Book and Pipeline

    Tembo Global Industries maintains a strong order book of INR 1,500 crores, providing significant revenue visibility. Additionally, the company has a substantial pipeline of projects worth INR 2,400 crores that are currently in the bidding phase. This robust order book and pipeline position the company well to achieve its FY27 revenue guidance of INR 1,600 crores.

    04

    Strategic Entry into Defense and Aerospace

    The company made significant strides in its defense and aerospace initiatives during Q1 FY27. It secured an ammunition manufacturing license for its subsidiary, Tembo Classic Engineering Pvt. Ltd., and acquired land in Amravati for a new defense manufacturing facility, with production expected to start in Q3 FY27. Furthermore, a strategic joint venture with JR UAV Europe Italy and JR PROPO Japan (JR UAV Limited) was announced, targeting INR 100 crores in revenue for its first calendar year (FY28) from UAV component manufacturing at the Vasai facility, also commencing in Q3 FY27.

    05

    Solar Business Expansion and Debt Profile

    Tembo's renewable energy portfolio is advancing, with four solar project sites already commissioned and operational. The remaining sites are on track for commissioning in Q2 FY27, with commercial operations expected to commence in Q3 FY27, contributing INR 50-60 crores in revenue this year and peaking at INR 80-90 crores by FY28. The company's consolidated debt stands at INR 400 crores, with INR 350 crores specifically allocated to solar projects, and an additional INR 200-250 crores planned for the first phase of defense capex, with no further additional debt anticipated.

    06

    Vasai Facility Ramp-up and Product Mix Evolution

    The new Vasai facility is currently operating at 35-40% capacity utilization, with a target to reach 65-70% by the end of FY27 and peak utilization within 1.5 to 2 years. While ERW components initially constituted 40-50% of the capacity, the contribution from other strut channels and components is increasing. The facility is expected to play a crucial role in driving the next phase of growth, with commercial production already commenced for certain products and others in line.

    This is an AI-generated summary of a publicly available earnings call transcript.