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Informist, Monday, Aug. 17, 2026

 

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--Tube Investments: High commodity costs hit margins in Apr-Jun
--Tube Investments: See margin neutralisation in coming quarters
--CONTEXT: Comments by Tube Investments mgmt in post-earnings analyst call
--Tube Investments: See double digit revenue growth in core business
--Tube Investments: Shall recover any under-recovery from steel price rise Q1
--Tube Investments: Volume growth is driving rise in margins
--Tube Investments: Overall volumes up 17% on year in Apr-Jun
--Tube Investments: Will spend INR 2.50 bln in Q3, total INR 7.5 bln FY27

 

By Sunil Raghu and Ruchira Kagita

 

AHMEDABAD/MUMBAI – Tube Investments of India Ltd. expects its margins to recover in the coming quarters as higher commodity costs, which weighed on profitability in Apr-Jun, are seen gradually neutralising, top officials said in a post-earnings analyst call Monday. They also expect the company to fully bounce back from the adverse impact of high steel prices.

 

The company is in talks with original equipment manufacturers to recover higher non-steel costs, including higher fuel and freight expenses, executives said. They expect margin improvement to be in "double digits" over the longer term. The overall volumes in the June quarter rose 17% on year, with traction across all four business segments, they said. Volumes in the engineering segment grew 17% on year while exports maintained double-digit momentum. Revenue growth was largely volume-led, barring the negative impact from Hyundai and railways, company officials said.

 

"Across the segments, across the vehicle categories, I think there was a strong momentum. Maybe only, I think, Hyundai was not able to contribute, which I am pretty sure they are working on new model developments," an official said.

 

The engineering and manufacturing company reported a standalone net profit of INR 1.59 billion for the June quarter, down nearly 6% on year from INR 1.68 billion. The company's revenue from operations rose nearly 18% on year to INR 22.28 billion from INR 18.92 billion. Sequentially, net profit declined 44% while revenues rose 4%. 

 

The engineering segment remained the largest contributor to Tube Investments' total revenues for the June quarter, with sales from the business up nearly 21% on year at INR 15.66 billion. Revenues from the metal-formed products segment rose 11% on year to INR 4.08 billion and those from the mobility segment were up 26% at INR 2.50 billion. The company's free cash flow for the June quarter was INR 1.74 billion.

 

In the mobility business, the company's billing volumes for the June quarter were 86 big trucks, 1,924 three-wheelers, 347 small commercial vehicles, and 22 tractors. The company sold around 20-25 tippers, but the market appears to be shifting towards 35-tonne and higher-capacity tippers, officials said. Tube Investments currently offers a 28-tonne electric tipper variant. The electric vehicle business is also seeing good traction, the company said, with one business expected to break even this year and two next year.

 

The outlook on revenues and profitability in its battery storage business is positive, top executives said, while the medical business may take some time for customer acquisition. They were confident revenues from the medical devices segment would grow in double-digits going ahead. The cycle business is expected to see a 5-percentage-point margin improvement in the financial year 2026-27 (Apr-Mar), officials said.  

 

Tube Investments would direct its capital expenditure mainly towards its engineering and metal-formed products divisions. Some funds will be used for growing its medical business. The company plans to spend around INR 3.5 billion on TI Medical Pvt. Ltd., a joint venture between Tube Investments and Premji Invest, and INR 1 billion on subsidiary Shanthi Gears Ltd. The company also plans to spend INR 2.5 billion during Oct-Dec, taking its total planned capital expenditure to INR 7.5 billion for FY27. 

 

At 1254 IST, Tube Investments shares traded at INR 2,723 apiece on the National Stock Exchange, down 0.4% from Friday.  End

 

Edited by Shubhayan Bhattacharya

 

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