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    TIL Q1 FY27 earnings call

    TIL
    Capital Goods·14 Aug 2026
    Management Summary

    TIL Limited reported a strong Q1 FY27 with consolidated revenue growing 86% YoY to INR117.1 crores and EBITDA improving significantly to INR7.3 crores, driven by execution of existing orders and the partial consolidation of Tulip Compression. Despite a negative PAT, the company is focused on converting its substantial order book of INR211 crores (TIL core) and INR328 crores (Tulip) into revenue, improving operational efficiency, and expanding its aftermarket and clean energy offerings. Management aims for 15-16% EBITDA margins and a tripling of turnover in the long term.

    Highlights

    5

    • Consolidated turnover reached INR117.1 crores, an 86% increase over Q1FY26.

    • Consolidated EBITDA rose to INR7.3 crores from INR1.1 crores in Q1FY26, with EBITDA margin improving to 6.2% from 1.5%.

    • Standalone revenue grew 25% to INR78.6 crores, and standalone EBITDA increased 209% to INR3.4 crores.

    • TIL's core business order book of INR211 crores and pipeline of INR373 crores provide a strong foundation for growth.

    • Tulip Compression's order book of INR328 crores and pipeline of INR117 crores strengthen TIL's clean energy portfolio.

    Concerns

    4

    • Consolidated PAT stood at negative INR5.5 crores.

    • Standalone PAT stood at negative INR7.2 crores.

    • Working capital cycle is currently stressed, with management targeting debtor days of 60-75 days.

    • EBITDA margins are varied across products, and structural changes for supply chain optimization will take a few more quarters to fully impact.

    Key financials

    Single quarter

    08 metrics
    1. 01Consolidated Revenue₹117.1 Cr+86%YoY
    2. 02Consolidated EBITDA₹7.3 Cr+5.6%YoY
    3. 03Consolidated EBITDA Margin6.2%+3.1%YoY
    4. 04Consolidated PAT₹-5.5 Cr
    5. 05Standalone Revenue₹78.6 Cr+25%YoY

    Segment breakdown

    Tulip Compression Private Limited (TCPL)
    May 8, 2026 to June 30, 2026 date_range Contribution Period₹278 Cr Last Year Revenue
    List

    Order Book

    high confidence

    Total Value

    ₹ 211 crores

    as of 2026-06-30

    quantified

    Execution

    Delivery timelines vary from as short as three months to six to nine months, depending on customer expectations and product profile.

    Composition

    Defense(client type)
    Civilian(client type)
    ReachStackers(product)

    Pipeline

    other

    Order pipeline for TIL's core business

    "The company aims to execute orders with discipline, deliver on committed timelines, and convert the order book into cash-generating growth."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    Tulip Compression Private Limited

    acquisition · integrated

    M&A

    Tulip Compression Private Limited

    acquisition · pending regulatory · Consideration ₹NaN (cash)

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    Standalone EBITDA Margin
    15-16%
    		High
    Profitability
    Tulip Compression EBITDA Margin
    14-15%
    		High
    Revenue
    Standalone Turnover
    Tripling
    		High
    Revenue
    Aftermarket Revenue Share
    40-50%
    		High
    Revenue
    Tulip Compression Revenue Growth
    Scale up significantly
    		Medium
    Revenue
    TIL Turnover (current year)
    More than INR200 crores
    		Medium
    Working Capital
    Debtor Days
    60-75 days maximum
    		High
    Ownership
    Tulip Compression Stake
    74%
    		High
    Product Launch
    CarryKing 515 Market Launch
    Q4 FY27 (optimistic) or Q1 FY28 (worst case)
    		High

    What to watch in Q2 FY27

    5

    Tulip Compression Full Quarter Contribution

    Next quarter (Q2 FY27)
    CurrentPart-period contribution in Q1 FY27 (May 8 - Jun 30, 2026)
    TargetFull quarter contribution to consolidated revenue and profitability

    Why it matters

    Will provide better visibility on scale and operating leverage for the clean energy segment.

    The consolidated results include the financial performance of TCPL, that is Tulip Compression, from 8th May 2026 to 30th June 2026, representing a part-period contribution during the quarter. Consequently, the reported consolidated revenue and profitability do not yet reflect a full quarter contribution from TCPL.

    Risks & concerns

    5
    RiskSeverity

    Dependence on overseas supply chain

    TIL's dependence on overseas supply chain has been dominant, and structural changes will take a few more quarters to implement. — Management acknowledged

    medium

    Long cycle time for defense orders

    Defense is a long-cycle business requiring internal approvals, which can delay execution and revenue recognition. — Management acknowledged

    medium

    Stressed working capital cycle

    The working capital cycle is currently stressed, with high debtor days, impacting cash flow. — Management acknowledged

    high

    Varied EBITDA margins due to product mix

    EBITDA margins vary significantly across different products, making consistent quarterly margins challenging until localization efforts mature. — Management acknowledged

    medium

    Competition from Chinese players on pricing and credit

    Chinese competitors have advantages in pricing and customer credit, which TIL addresses through product reliability and aftermarket support. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “today our market share is in the range of 38% to 40%, which we are wanting to scale up significantly beyond this because we are a domestic manufacturer... this is not only CONCOR. CONCOR order is okay, I mean that's a one-time order... But much more than CONCOR, we are also focused on the retail space.”

    Clarifies TIL's strong market position in ReachStackers and its strategy to expand beyond large government orders to the retail segment.

    asked by Shristi Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview and Growth Momentum

    TIL Limited reported a robust Q1 FY27, with consolidated turnover reaching INR117.1 crores, marking an 86% increase year-on-year. Consolidated EBITDA significantly improved to INR7.3 crores from INR1.1 crores in Q1FY26, leading to an EBITDA margin of 6.2%. On a standalone basis, revenue grew 25% to INR78.6 crores, and EBITDA surged 209% to INR3.4 crores. Despite this operational growth, the company recorded a consolidated PAT of negative INR5.5 crores and a standalone PAT of negative INR7.2 crores.

    02

    Strong Order Book and Pipeline for Core Business

    The company's core business demonstrates strong visibility with an order book of INR211 crores and an order pipeline of INR373 crores, providing a solid foundation for future revenue. Management emphasized the importance of converting this order book into billed performance, highlighting the delivery of nine ReachStackers in Q1 FY27 as a key achievement. TIL currently holds a 38-40% market share in ReachStackers and is actively expanding into new applications and retail segments beyond large one-time📎 orders.

    03

    Strategic Entry into Clean Energy with Tulip Compression

    The acquisition of Tulip Compression Private Limited (TCPL) is a significant strategic move, with its financial performance partially consolidated from May 8, 2026. TCPL specializes in fast-growing clean energy infrastructure, including CNG, LNG, and hydrogen compression, with an order book of INR328 crores and a pipeline of INR117 crores. TIL plans to infuse INR50 crores equity into Tulip and aims to increase its ownership stake to 74% in the coming years, targeting a 14-15% EBITDA margin for TCPL.

    04

    Aggressive Indigenization and Aftermarket Focus

    TIL is committed to aggressive indigenization, aiming for 90% or more localization across its product range, including critical components like Cummins engines for ReachStackers. This effort is complemented by a sharpened focus on the aftermarket business, which is targeted to contribute 40-50% of overall revenue in the long term, a significant increase from INR56 crores in the last fiscal year. These initiatives are expected to drive structural margin improvements and reduce dependence on overseas supply chains.

    05

    Long-Term Growth and Profitability Targets

    Management has set ambitious long-term targets, aiming to triple TIL's standalone turnover within the next 5-7 years and achieve a 15-16% EBITDA margin for the standalone business. This growth will be fueled by expanding product offerings, including new indigenous products like the CarryKing 515, which is expected to launch in Q4 FY27 or Q1 FY28 and disrupt the 14,000 crane market with its unique lifting and carrying solution.

    06

    Working Capital Challenges and Supply Chain Optimization

    The company acknowledges that its working capital cycle is currently stressed, with a target to reduce debtor days to a maximum of 60-75 days. Efforts are underway to optimize the supply chain, particularly by reducing reliance on overseas vendors and bringing European supply chain components to India. This structural change is expected to take several more quarters to fully materialize and contribute to margin improvement.

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