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Informist, Wednesday, Feb. 4, 2026

 

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--Tube Invest: Export growth in Q3 has been weaker than expected 
--CONTEXT: Comments by Tube Invest mgmt in post-earnings analyst call 
--Tube Invest: Railway project currently delayed, FY27 should be better 
--Tube Invest: Domestic ops did well in Q3, barring railway 
--Tube Invest: Order book currently poses a challenge for Shanthi Gears 
--Tube Invest: No indication that Section 232 duty in US will come down 
--Tube Invest: Trade barriers in Europe a challenge for co 
--Tube Invest: E-vehicle business incurred losses of INR 1.64 bln in Q3 
 

 

By Taniva Singha Roy and Anand JC

 

MUMBAI – Tube Investments of India Ltd. sees significant growth opportunities in its core organic operations going forward, the company's management said in a post-earnings conference call with analysts Wednesday. The company classifies its organic core operations as 'TI1', wherein it derives revenues from engineering operations. "If you take organic growth business, where we thought we would (grow) more like six to nine percent, we've seen double-digit growth in those businesses," a top company executive said.

 

The Murugappa group company has multiple subsidiaries through which it operates in segments such as metal-formed products and mobility. "On the engineering side, you can see fairly strong results for the tubes business. And I do think that we will see that performance continue for the foreseeable future," the company said.

 

Tube Investments operates in the tube segment through its unit Tube Products of India, which is a market leader in precision steel tubes, primarily supplying cold drawn welded and electric resistance welded tubes to the automotive and industrial sectors.

 

Barring its railway business, the company's domestic operations fared well in the December quarter. Elaborating on the weakness of its railway business, the company said it is currently delayed. The company expects prototypes for its project to be submitted by April. "Based on the prototype samples, we are hopeful that FY27 should be better for the project," the management said.

EXPORTS PUSH

The company said growth of its exports operations in the December quarter was weaker than it had expected. Export as a lever has not played out as per expectations but domestic growth has been offering enough growth opportunities, according to the management.

 

Washington and New Delhi recently announced that they are set to sign a trade deal which would reduce tariffs on Indian imports to 18% from 50?fore. However, for commodities falling under Section 232 in the US, the tariff stays at 50%, the company said. "There's been no indication right now that Section 232, the duty of 50 percent is going to come down. So the current stand is still that that sticks," the company said.

 

Tube Investments sees Europe as a big market, especially for automotive products. With the recent announcement of a trade deal between India and the European Union, there would've been more relief for the company, but for the non-tariff barriers there. "It's definitely been a huge opportunity for us. But they've also had all kinds of barriers, both on the volume side and on an entity," the company said.

 

Trade barriers for Indian exports to the European Union consist primarily of non-tariff measures like strict technical standards, sanitary regulations, and emerging green taxes. Key obstacles include the carbon border adjustment mechanism, complex conformity assessments, and rigorous product safety rules.

 

Shanthi Gears Ltd., which designs, manufactures, and services industrial gears, is part of Tube Investments' portfolio. This arm has seen its top line falling sequentially for the last few quarters. While the company is bullish on this business in the long-term, it flagged that Shanthi Gears is facing issues with its order book currently. "The group philosophy is to always keep (an) eye on the margins, which we don't want to dilute. So we see little bit the slowdown in the order book and also you feel it's temporary," the company said.

 

Tube Investments has a presence in the electric mobility segment through its arm TI Clean Mobility Pvt. Ltd., which sells electric three-wheelers, small commercial vehicles, and tractors. Its electric vehicle business incurred a loss of INR 1.64 billion in the December quarter. "We are actively focused on kind of the variable operations and maintenance cost reduction side to make the product more competitive from a pricing perspective. And then obviously, the second building channel and the network," they said.

 

Tube Investments posted a double-digit growth in both its bottom line and top line for the December quarter, beating analysts' estimates slightly. The company reported a net profit of INR 1.89 billion for the quarter, up nearly 18% on year. Total revenue from operations for the quarter rose nearly 13% on year to INR 21.52 billion, which was slightly higher than Motilal Oswal's estimate of INR 21.22 billion.

 

Shares of the company Wednesday closed at INR 2,637.40 on the National Stock Exchange, up over 5% from the previous session.  End

 

Edited by Ashish Shirke

 

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