Tube Investments Reports 11.5% PBT Growth in Q2 FY2026, Sees Strong Demand Post-GST Cuts

Tube Investments of India Limited (TII) has reported a robust performance for the second quarter of fiscal year 2026, with standalone profit before tax (PBT) growing by 11.5% year-on-year. The company also witnessed a significant uptick in demand following recent GST rate changes.

Financial Highlights

TII's standalone financial results for Q2 FY2026 show resilience and growth:

Metric	Q2 FY2026	Q2 FY2025	YoY Change
Revenue	₹2,119.00	₹2,065.00	+2.6%
Profit Before Tax	₹250.00	₹225.00	+11.5%
ROIC	44%	45%	-100 bps
Free Cash Flow	₹183.00	-	-

At the consolidated level, TII reported revenue of ₹5,523.00 crores, compared to ₹4,925.00 crores in the same quarter last year, marking a significant increase.

Segment Performance

Engineering Division

Revenue: ₹1,382.00 crores (vs ₹1,323.00 crores in Q2 FY2025)
PBIT: ₹164.00 crores (vs ₹162.00 crores in Q2 FY2025)
Volume growth of approximately 10% year-on-year

Metal Formed Products

Revenue: ₹408.00 crores (vs ₹404.00 crores in Q2 FY2025)
PBIT: ₹44.00 crores (vs ₹46.00 crores in Q2 FY2025)

Mobility Business (Bicycles)

Revenue: ₹194.00 crores (vs ₹168.00 crores in Q2 FY2025)
PBIT: ₹4.00 crores (vs ₹0.36 crores loss in Q2 FY2025)

Other Segments

Revenue: ₹227.00 crores (vs ₹243.00 crores in Q2 FY2025)
PBIT: ₹18.00 crores (vs ₹9.00 crores in Q2 FY2025)

Post-GST Demand Surge

Mukesh Ahuja, Managing Director of TII, noted a significant uptick in demand following the GST rate changes implemented on September 22nd. "October as well as November, both seems to be very very strong months like earlier festival months used to be but this time it is much better," Ahuja commented.

EV Business Performance

TI Clean Mobility, the company's EV arm, reported strong growth:

21% year-on-year revenue growth
31% quarter-on-quarter revenue growth

EV sales volumes for Q2 FY2026:

Three-wheelers: 2,082 units
Heavy Commercial Vehicles: 44 units
Small Commercial Vehicles: 167 units
E-tractors: 100 units

Future Outlook

TII plans to invest ₹300.00-400.00 crores in capital expenditure for its base business in the coming year. The company is also exploring new verticals under TI Medical and considering investments in TI Clean Mobility.

Vellayan Subbiah, Vice Chairman of TII, expressed confidence in the company's growth trajectory, targeting 12-15% PBT growth for the core business in the coming year.

As Tube Investments of India continues to diversify its portfolio and invest in emerging sectors like EVs and medical devices, the company appears well-positioned to capitalize on the evolving market dynamics and sustain its growth momentum.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.04%	-4.04%	-5.95%	-1.96%	-16.93%	+254.49%

Tube Investments of India Limited (TII) has reported mixed results for the second quarter, with revenue growth but a decline in net profit.

Financial Highlights

Revenue increased to Rs 5,522.00 crore, up from Rs 4,920.00 crore in the same quarter last year.
Net profit declined to Rs 187.00 crore, compared to Rs 207.00 crore in the corresponding period of the previous year.
EBITDA rose to Rs 544.00 crore from Rs 490.00 crore year-over-year.
EBITDA margin slightly decreased to 9.86% from 9.96% in the same quarter last year.
Profit before tax (PBT) grew by 11.5% to Rs 250.00 crore, compared to Rs 225.00 crore in the same period last year.
The company maintained a strong Return on Invested Capital (ROIC) of 44% (annualized) for the quarter.
Free cash flow for the quarter was Rs 183.00 crore.

Segment Performance

Engineering

Metric	Q2 Current Year	Q2 Previous Year
Revenue	1,382.00	1,323.00
Profit before interest and tax	164.00	162.00

Metal Formed Products

Metric	Q2 Current Year	Q2 Previous Year
Revenue	408.00	404.00
Profit before interest and tax	44.00	46.00

Mobility

Metric	Q2 Current Year	Q2 Previous Year
Revenue	194.00	168.00
Profit before interest and tax	4.00	-0.36

Others

Metric	Q2 Current Year	Q2 Previous Year
Revenue	227.00	243.00
Profit before interest and tax	18.00	9.00

Consolidated Performance

TII's consolidated revenue for the quarter reached Rs 5,523.00 crore, compared to Rs 4,925.00 crore in the corresponding quarter of the previous year. The profit before share of profit of an Associate/Joint Venture, Exceptional Items and Tax stood at Rs 459.00 crore, up from Rs 426.00 crore in the same period last year.

Subsidiary Performance

CG Power and Industrial Solutions Ltd

Metric	Q2 Current Year	Q2 Previous Year
Consolidated revenue	2,923.00	2,413.00
Profit before tax	388.00	294.00

Shanthi Gears Ltd

Metric	Q2 Current Year	Q2 Previous Year
Revenue	132.00	155.00
Profit before tax	29.00	34.00

Corporate Actions

The Board of Directors has approved a reclassification request from Yanmaar Coromandel Agrisolutions Private Limited to move from Promoter Group category to Public Shareholder category, subject to obtaining No Objection Certificate from stock exchanges.

Equity Share Allotment

On 4th November, TII allotted 10,960 equity shares of Re.1/- each at an exercise price of Rs 1,471.90 per share under its Employee Stock Option Plan 2017. This allotment has increased the total number of outstanding equity shares to 19,35,08,850 and the paid-up equity share capital to Rs 19,35,08,850/-.

Tube Investments of India Limited demonstrates a mixed financial performance across its diverse business segments, with notable revenue growth in its consolidated results but a decline in net profit. The company's focus on maintaining a healthy ROIC and generating substantial free cash flow positions it well for future growth and shareholder value creation.