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    Tembo Global Industries Limited

    TEMBO
    Capital Goods·5 Feb 2026
    Management Summary

    Tembo Global Industries reported strong Q3 FY26 financial performance with significant YoY growth in revenue, EBITDA, and PAT. The company achieved a robust order book and commenced production at its new Vasai facility, enhancing manufacturing capacity. Progress in new verticals like Solar and Defence, with the latter expected to begin commercial production soon, underpins future growth. Management provided optimistic guidance for FY27 growth and margins, while addressing questions on working capital and material costs.

    Highlights

    6

    • Q3 FY26 Revenue of ₹251 crores, up 49.5% YoY, driven by strong traction in Engineering and Textile segments.

    • Q3 FY26 EBITDA at ₹43 crores, up 41.9% YoY, with EBITDA margin at 17.2%.

    • Q3 FY26 PAT at ₹26 crores, up 36.7% YoY.

    • Consolidated order book of approximately ₹1484 crores as of December 2025, providing strong revenue visibility.

    • New Vasai manufacturing facility commenced commercial production, increasing installed capacity to 100,000 metric tons.

    • Significant progress in new business verticals: Solar land acquired across 24 sites and project financing disposed; Defence completed regulatory steps and targeting Sep-Oct 2026 for commercial production.

    Concerns

    2

    • Cost of material increased by 86% QoQ, though management attributed it to project-specific variations.

    • Working capital days remain at 80-90 days, indicating continued capital intensity.

    What Changed2

    vs Q4 FY26

    Guidance items11 → 13 (+2)Risks discussed2 → 3 (+1)
    Key financials

    Metrics

    11

    Periods

    3

    Headline

    1
    • Working Capital Days
      80 days

    Q3 FY26

    5
    • Revenue
      ₹251 Cr
      YoY+49.5%
    • EBITDA
      ₹43 Cr
      YoY+41.9%
    • EBITDA Margin
      17.2%
    • PAT
      ₹26 Cr
      YoY+36.7%
    • PAT Margin
      10.4%

    9M FY26

    5
    • Revenue
      ₹744 Cr
      YoY+58.6%
    • EBITDA
      ₹104 Cr
      YoY+64.7%
    • EBITDA Margin
      13.9%
    • PAT
      ₹68 Cr
    • PAT Margin
      10.4%

    Segment breakdown

    Engineering Division
    52.9% Revenue Growth (Q3 FY26)
    Textile Division
    44.4% Revenue Growth (Q3 FY26)
    List

    Order Book

    high confidence

    Total Value

    ₹ 1,484 crores

    as of 2025-12-31

    quantified

    Execution

    12 to 24 months of execution

    Composition

    Engineering products and EPC led projects(product)

    Pipeline

    deal pipeline tcv

    active discussions for potential projects related to Port construction and Fuel Farm systems with a potential valuing exceeding Rs. 700 crores spanning Civil, MEP and HVAC packages.

    "This order book gives us a strong revenue visibility for the coming Quarters."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Solar loans passed, Defence commitment from banker. Internal accruals and bankers for working capital.

    M&A

    Tembo Infra

    merger · pending regulatory

    M&A

    Tembo Defence

    acquisition · closed

    Guidance & targets

    11
    CategoryTargetPriority
    Revenue
    Defence Revenue
    125-150 crores
    		High
    Revenue
    Defence Annual Revenue Potential (Full Capacity)
    300 crores
    		High
    Revenue
    Solar Revenue
    75-90 crores
    		High
    Revenue
    Solar Annual Revenue (Full Capacity)
    75-90 crores
    		High
    Margin
    Defence EBITDA Margin
    30-35%
    		High
    Capacity
    Defence Commercial Production Start
    September end or October 2026
    		High
    Capacity
    Vasai Plant Utilization
    90-100%
    		Medium
    Other
    Solar Subsidies
    110 crores
    		High
    Other
    Solar Commercialization
    Fully commercialized in 2027
    		High
    Other
    Solar Payback Period
    Maximum five years
    		High
    Other
    Textile Business Separation
    Separated by 2027
    		High

    What to watch in Q4 FY26

    4

    Defence Commercial Production Start

    Next quarter (Q3 FY27)
    CurrentMachinery coming in, payments made, regulatory steps completed
    TargetCommercial production started

    Why it matters

    The Defence segment is a new, high-margin vertical, and its operationalization is key to future growth and profitability.

    So maximum to maximum, September end or October we should start commercial production for Defence.

    Risks & concerns

    3
    RiskSeverity

    Cost of Material Volatility

    An analyst noted an 86% QoQ increase in cost of material, which management attributed to project-specific variations rather than a systemic issue. — Analyst acknowledged

    medium

    Working Capital Intensity

    The company's working capital cycle is 80-90 days, which is typical for the capital goods sector but requires continuous management and funding. — Analyst acknowledged

    medium

    Project Execution Delays in New Verticals

    While specific timelines are provided for Defence commercial production (Sep-Oct 2026) and Solar commercialization (2027), project execution in new, complex areas inherently carries risks of delays. — Other acknowledged

    medium

    Q&A highlights

    8

    “So maximum to maximum, September end or October we should start commercial production for Defence. ... FY27, you can expect Rs. 125 to Rs. 150 crore. ... Annually, it should reach around Rs. 300 crore... EBITDA might be around 30% - 35%.”

    Provides specific financial and operational targets for the new, high-margin Defence vertical, which is a key growth driver.

    asked by Deepak Poddar

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Financial Performance in Q3 & 9M FY26

    Tembo Global Industries delivered strong financial results for Q3 FY26, with revenue reaching ₹251 crore, marking a 49.5% year-on-year growth. EBITDA for the quarter stood at ₹43 crore, up 41.9% YoY, achieving a margin of 17.2%. Profit after Tax (PAT) increased by 36.7% YoY to ₹26 crore. For the nine-month period, revenue grew 58.6% YoY to ₹744 crore, with EBITDA at ₹104 crore (up 64.7% YoY) and PAT at ₹68 crore, reflecting consistent execution and improved scale.

    02

    Expanded Manufacturing Capacity and Operational Efficiency

    A key operational highlight was the commencement of commercial production at the new manufacturing facility in Vasai. This modern facility significantly scales up manufacturing capabilities, increasing installed capacity to approximately 100,000 metric tons. The company expects this facility to reach 90-100% utilization within two to three years, which is anticipated to improve operational efficiency, logistics, and overall margins.

    03

    Strong Order Book and Promising Pipeline

    The company maintains a robust consolidated order book of approximately ₹1484 crore as of December 2025, primarily driven by Engineering products and EPC-led projects, providing strong revenue visibility for the coming quarters. Management indicated an execution timeline of 12 to 24 months for this order book. Furthermore, Tembo Global is in active discussions for potential projects exceeding ₹700 crore in Port construction and Fuel Farm systems, spanning Civil, MEP, and HVAC packages.

    04

    Strategic Progress in New Business Verticals: Defence

    Significant progress was reported in the Defence vertical, where the company has completed key regulatory steps, including land allotment and obtaining the arms license. Orders for machinery and technology have been placed, with commercial production targeted to commence by September end or October 2026. The first stage of the Defence plant has an annual revenue potential of ₹300 crore, with an expected EBITDA margin of 30-35%.

    05

    Strategic Progress in New Business Verticals: Solar

    In the Solar segment, Tembo Global has successfully acquired land across 24 sites, and the first tranche of project financing has been disposed by banking partners. The company is setting up a capital outlay plant of ₹650 crore, which will generate annual revenue of ₹75-90 crore for 25 years by selling power to the Maharashtra government. The Solar project is expected to be fully commercialized in 2027 and has a maximum payback period of five years, with an additional ₹110 crore in subsidies expected next year.

    06

    Outlook and Capital Allocation Strategy

    For FY27, Tembo Global is targeting a revenue growth of 35-40% and a PAT margin of 10-12%. The company's capital expenditure plans include ₹1000 crore for Defence and ₹650 crore for Solar, with funding secured through institutional approvals and banker commitments. The company also announced the proposed merger of Tembo Infra with Tembo Global Industries and plans to separate its textile business by 2027 to unlock value, while maintaining a stable working capital matrix.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.