Tube Investments of India Limited — Q3 FY26 earnings call

Call held 4 Feb 2026

Management summary

Tube Investments of India reported robust Q3 FY26 results with strong double-digit growth in both standalone and consolidated revenues and profits. The core engineering and metal formed businesses performed well, and the Mobility business turned profitable. However, the company acknowledged significant delays in its 3xper venture due to regulatory hurdles and challenges in scaling TI Medical. Management outlined strategies for its EV business, including significant incremental investment and a focus on cost reduction and channel development, while also noting ongoing difficulties in export markets.

Highlights

  • Standalone revenue grew 12.67% YoY to ₹2,152 Crores.

  • Standalone PBT before exceptional items increased 26.42% YoY to ₹268 Crores.

  • Consolidated revenue rose 20.55% YoY to ₹5,801 Crores.

  • Mobility Business achieved a PBIT of ₹4 Crores, turning profitable from a loss of ₹0.8 Crores last year.

  • Annualized ROIC improved to 49% in Q3 FY26 from 43% in the prior year.

Concerns

  • 3xper project delayed by over 18 months due to facility permissions and certification cycles.

  • Engineering exports to the US remain impacted by a 50% effective duty under Section 232.

  • Shanthi Gears experienced a 25.95% YoY revenue decline and a slowdown in order book.

  • New engineering plants commissioning delayed by six to nine months.

Key financials

  1. Standalone Revenue ₹2,152 Cr +12.7%YoY
  2. Standalone PBT (pre-exceptional) ₹268 Cr +26.4%YoY
  3. Standalone ROIC (annualized) 49%
  4. Standalone Free Cash Flow ₹248 Cr
  5. Consolidated Revenue ₹5,801 Cr +20.5%YoY
  6. Consolidated Profit (pre-associate/JV, exceptional, tax) ₹502 Cr +17.6%YoY
  7. EV Business Loss ₹164.31 Cr

What they filed

Q1 FY27: revenue up 17.1%, net profit down 3.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,925 4,812 5,150 5,309 5,523 +12%5,801 +21%6,215 +21%6,215 +17%
EBITDA490 491 337 546 544 +11%585 +19%583 +73%548 +0%
Net profit299 280 158 303 302 +1%279 −0%234 +48%294 −3%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenuePBIT
Engineering Business₹1,438 Cr₹196 Cr
Metal Formed₹408 Cr₹46 Cr
Mobility Business₹183 Cr₹4 Cr
Other Businesses₹214 Cr₹19 Cr
CG Power (Associate)——
Shanthi Gears₹117 Cr—

Capital allocation

high confidence
  • Dividend ₹2/share (interim)
    The board also declared an interim dividend of Rs.2 per share for the financial year 2025-2026.

Guidance & targets

Capex

  • Incremental EV Investment Capex · future · High confidence ₹500-750 Crores
    Yes, Anupam, I would say that it will definitely be at least Rs.500 Crores and it could be so my sense is the range is Rs.500 Crores to Rs.750 Crores.

    — Vellayan Subbiah

Profitability

  • EV Business Breakeven Profitability · future · Medium confidence 1-1.5 years
    let's say if the breakeven is pushed out, let's say one, one-and-a-half years down the line

    — Vellayan Subbiah

  • EV Product Breakeven Priority Profitability · next 12 to 18 months · High confidence heavy vehicles and three-wheeler first, then SCV and tractor
    I definitely say that the two which we are pushing towards breakeven in the next 12 to 18 will be in the heavy vehicles and in the three-wheeler, because those have had the longest track records. And then that will be followed by SCV and then tractor.

    — Vellayan Subbiah

Business Commencement

  • Railway Business Commencement Business Commencement · FY2027 · High confidence early FY2027

    Previously 4Q FY2026 → early FY2027

    That project is little bit running delayed. And prototype samples are getting submitted between March and April, maybe quarter one and in March, it will get submitted. And based on the prototype samples, and that company is also developing the product first time. So we are hopeful FY2027 should be better.

    — Mukesh Ahuja

Capacity

  • New Engineering Plants Commissioning Capacity · future · High confidence delayed by six to nine months
    So that is also a little bit deferred. We are maybe hoping, I think it will get delayed by six to nine months' time.

    — Vellayan Subbiah

Business Revival

  • Shanthi Gears Order Book Revival Business Revival · next 1-2 quarters · Medium confidence 1-2 quarters
    So we see a little bit of slowdown in the order book. And also, we feel it is a temporary nature, maybe another one or two quarters, and we will revive it back.

    — Mukesh Ahuja

Market Opportunity

  • EU FTA Export Growth Market Opportunity · next 12 to 15 months · Medium confidence substantial growth and ramp up
    As and when it happens in the course of next 12 to 15 months, we can see substantial growth and ramp up in the European markets?

    — Mukesh Ahuja

Strategy

  • TI2 (New Businesses) Focus Strategy · future · High confidence unlikely anything significant
    So I think that I would say that right now, definitely, Sujit's point is also valid, which is, it is unlikely we will do anything significant in TI2 anymore.

    — Vellayan Subbiah

Team Onboarding

  • CG Power Services Business Team Onboarding Team Onboarding · first quarter of FY2027 · High confidence on board
    So at least the team should be on board in the first quarter of FY2027.

    — Vellayan Subbiah

What to watch in Q4 FY26

Railway business commercial operations

early FY27
Current Prototype samples being submitted (March/April)
Target Commercial operations commence

Why it matters

Marks the start of revenue generation from a new strategic business segment.

That project is little bit running delayed. And prototype samples are getting submitted between March and April, maybe quarter one and in March, it will get submitted. And based on the prototype samples, and that company is also developing the product first time. So we are hopeful FY2027 should be better.

Risks & concerns

  • Significant delays in facility commissioning and certification for 3xper business

    high

    3xper project delayed by 'more than 18 months' due to regulatory permissions and long certification cycles, impacting revenue and scale.

    Management acknowledged

  • Persistent high tariffs (Section 232, 50% duty) in the US market hindering engineering export growth

    high

    US Section 232 tariffs continue to impose a 50% duty, severely limiting export growth to the US for engineering products with no immediate relief expected.

    Management acknowledged

  • Underperformance and delays in achieving profitability in new EV ventures

    medium

    EV business has faced a 'definite learning curve' and 'mistakes', leading to delays in expected profitability, with breakeven pushed out by 1-1.5 years.

    Management acknowledged

  • Difficulty in scaling the TI Medical business due to limited acquisition targets

    medium

    The learning curve for TI Medical has shown limited acquisition targets in India, posing a challenge for scaling up.

    Management acknowledged

  • Weak demand in European markets impacting Metal Formed division exports

    medium

    Weak European demand is contributing to the divergence in growth rates between the engineering and metal formed divisions.

    Management acknowledged

  • Slowdown in order book for Shanthi Gears, impacting revenue

    medium

    Shanthi Gears is experiencing a temporary slowdown in its order book, but management expects a revival within 1-2 quarters by prioritizing margins.

    Management acknowledged

  • Delay in commissioning of new engineering plants

    low

    New engineering plants, including one in West, are experiencing a delay of 6-9 months.

    Management acknowledged

Q&A highlights

8 direct
Consolidation strategy for new businesses (TI Clean Mobility, TI Medical, 3xper) Direct
I would say that we went through things that are definite learning curve, right? I mean, I made some mistakes, kind of I have not perhaps performed as well as we could have in certain segments... So I would actually say that now is the time to double down on that business. It is not the time to kind of back off.

Management acknowledged past mistakes and delays in new ventures but reaffirmed commitment to 'double down' on these businesses, indicating continued investment and strategic focus.

Asked by Sujit Jain

Timeline for railway business commencement Direct
That project is little bit running delayed... So we are hopeful FY2027 should be better.

Confirms a delay in the commercialization of the railway business, pushing back expected revenue contributions to FY27.

Asked by Joseph George

Incremental investment in the EV business given ongoing losses Direct
Yes, Anupam, I would say that it will definitely be at least Rs.500 Crores and it could be so my sense is the range is Rs.500 Crores to Rs.750 Crores.

Quantifies the significant additional capital allocation planned for the EV segment, highlighting continued strategic commitment despite current losses.

Asked by Anupam Gupta

Strategy to improve EV business performance and achieve breakeven Direct
the objective is to kind of bring down all cost structures that we did... The good thing is that all the product issues are behind us, right? So it is basically now it is just focused on again, kind of developing stronger relationships with the channel and beginning to push out on sales.

Details the specific operational and market-focused strategies management is implementing to drive EV business turnaround, including cost reduction and sales channel development.

Asked by Anupam Gupta

Divergence in growth rates between Engineering and Metal Formed divisions Direct
Actually, in MFPD, we are having today two challenges what we are facing is one is railway business, second particularly whatever exports we do in MFPD for the European market. So European markets are going a little bit weaker that is why there is a little bit divergence.

Explains the reasons for the relatively slower growth in the Metal Formed division, citing external market weakness in Europe and internal railway business challenges.

Asked by Salil Desai

Impact of US tariffs (Section 232) and EU FTA on export opportunities Direct
So, there has been no indication right now that section 232, the duty of 50% is going to come down... Europe is definitely been a huge opportunity for us, but they have also had all kinds of barriers, both on the volume side and on an NTB side.

Clarifies the persistent high tariff barrier in the US and identifies Europe as a significant future export opportunity, contingent on trade barrier resolution.

Asked by Jinesh Gandhi

Performance and outlook for Shanthi Gears Direct
in the short run, order book is a challenge... So we see a little bit of slowdown in the order book. And also, we feel it is a temporary nature, maybe another one or two quarters, and we will revive it back.

Provides insight into the current weakness of Shanthi Gears due to order book challenges and management's expectation of a short-term revival while prioritizing margins.

Asked by Salil Desai

Prioritization of EV products for achieving breakeven Direct
I definitely say that the two which we are pushing towards breakeven in the next 12 to 18 will be in the heavy vehicles and in the three-wheeler, because those have had the longest track records. And then that will be followed by SCV and then tractor.

Offers a clear roadmap for which EV segments are expected to achieve profitability first, guiding investor expectations on the EV portfolio.

Asked by Vipul Shah

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Tube Investments of India reported strong financial performance for Q3 FY26. Standalone revenue grew by 12.67% YoY to ₹2,152 Crores, with PBT before exceptional items increasing by 26.42% YoY to ₹268 Crores. The annualized ROIC improved to 49% from 43% in the prior year. On a consolidated basis, revenue rose 20.55% YoY to ₹5,801 Crores, and profit before associate/JV, exceptional items, and tax was up 17.56% YoY to ₹502 Crores. The company also declared an interim dividend of ₹2 per share for FY2025-2026.

Strategic Review of New Businesses (TI Clean Mobility, 3xper, TI Medical)

Management provided a candid assessment of its new ventures, acknowledging 'mistakes' and underperformance in certain segments, particularly TI Clean Mobility. Despite delays, the company remains committed to these 'TI2 plays,' viewing them as valid long-term opportunities. The 3xper project has faced significant delays, over 18 months, due to regulatory permissions for its Andhra Pradesh facility, though all consents are now secured, with production expected to start in the next three months. TI Medical is challenged by a limited number of acquisition targets in India, making scaling difficult.

Core Engineering and Metal Formed Business Performance

The core engineering business demonstrated robust growth, with revenue increasing by 18.65% YoY to ₹1,438 Crores and PBIT up 25.64% YoY to ₹196 Crores. This growth was primarily driven by strong domestic demand and capacity expansions, with the company expecting its new plants to be fully booked by the next year. The Metal Formed division saw modest revenue growth of 2% YoY to ₹408 Crores and PBIT growth of 15% YoY to ₹46 Crores, with management attributing slower growth to weak European export markets and challenges in the railway business.

EV Business Strategy and Investment

The Mobility Business (EV) turned profitable this quarter, reporting a PBIT of ₹4 Crores compared to a loss of ₹0.8 Crores last year, with revenue growing 28.87% YoY to ₹183 Crores. Management indicated a continued incremental investment of ₹500-750 Crores from the parent balance sheet into the EV business, despite breakeven being pushed out by 1-1.5 years. The strategy focuses on cost reduction and strengthening channel relationships for three-wheelers, while for small commercial vehicles and M&HCVs, the focus is on product competitiveness and developing use cases, particularly in segments like cement. Heavy vehicles and three-wheelers are expected to reach breakeven first within 12-18 months.

Shanthi Gears Performance and Outlook

Shanthi Gears experienced a decline in revenue by 25.95% YoY to ₹117 Crores and profit by 34.28% YoY to ₹23 Crores. Management attributed this to a 'challenge' in the order book and a 'little bit of slowdown.' However, they view this as a 'temporary nature' and expect a revival within the next one or two quarters, emphasizing their philosophy of maintaining margins even during slower periods.

Export Market Challenges and Opportunities

Export performance for the engineering business was hampered by external factors. The US market remains challenging due to a persistent 50% effective duty under Section 232, with no immediate indication of its reduction. European demand was also noted as weak, impacting the Metal Formed division. However, management sees Europe as a 'huge opportunity' for substantial growth and ramp-up in the next 12-15 months, contingent on the resolution of trade barriers and the implementation of the EU FTA.

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