Synopsis:
Tembo Global Industries Ltd has announced plans for revenue growth, new orders, and margin guidance in FY26, demonstrating confidence in future growth driven by exports and expansion projects.
A micro cap company that manufactures and trades fabricated metal products is in the spotlight today following the announcement of its revenue and order guidance for FY26. The article below provides a detailed overview of the company’s performance and future outlook.
With a market capitalization of Rs. 905.99 crore, the shares of Tembo Global Industries Ltd Limited trading at Rs. 585.75, down by 1.65 percent from its previous closing price of Rs. 595.55 per equity share.
What’s the News?
Tembo Global Industries Ltd.’s management has provided a positive outlook, including revenue growth, order inflows, and margin. The company is confident in maintaining strong business momentum through strategic investments and a robust pipeline of opportunities.
Revenue & Profit Guidance
Tembo Global Industries Ltd reported Q1 FY26 revenue of Rs. 248 crore and Rs. 743 crore in FY 25 and has guided for FY26 revenue of Rs. 1,100 crore(48 percent upside from FY25 Revenue), which management terms conservative.
For FY27, revenue is projected at Rs. 1,400–1,500 crore(101 percent upside from FY25 revenue), with a long-term target of Rs. 1,000 crore from defense revenues alone by FY30.
In Q1 FY26, Tembo Global Industries Ltd delivered a PAT of Rs. 19 crore with a 7.7 percent margin. In FY25, the company reported PAT of Rs. 51 crore with margin of 6.86 percent. For FY26, the company anticipates PAT in the range of Rs. 80–100 crore (96 percent upside from FY25 PAT), reflecting margins of around 7–9 percent. Looking ahead to FY27, PAT is expected to cross Rs. 200 crore (292.16 percent upside from FY25 PAT), supported by strong growth in the defense and solar segments.
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Segment-wise Guidance
Tembo Global Industries Ltd expects robust segmental profitability, with defense operations projected to deliver 25–27 percent PAT margins, translating to Rs. 85–90 crore PAT on Rs. 300 crore revenue in phase 1. While solar margins are not explicitly quantified, management highlights superior internal cost structures and in-house EPC capabilities as drivers of above-market profitability. The engineering/EPC segment is also expected to see margin improvement as the business mix gradually reduces reliance on textiles.
Order Guidance
As of June 30, 2025, Tembo Global Industries Ltd had an order book of Rs. 1,350 crore and an L1 bidding pipeline worth Rs. 2,000 crore, with an expected conversion rate of 50–60 percent. Within this, a notable Rs. 600 crore EPC project is highlighted, of which Rs. 24 crore was booked in Q1 and another Rs. 50 crore is currently under negotiation.
About the Company
Tembo Global Industries Ltd is a leading engineering company producing specialized metal products such as pipe support systems, fasteners, anchors, and HVAC solutions for sectors including automotive, real estate, infrastructure, and oil & gas, while also trading textile products for industrial and commercial use. The company, which entered the defense sector in FY25, focuses on expansion and efficiency to enhance cost competitiveness and profitability.
In Q1FY26, the company posted revenue of Rs. 248 crore, rising 93.8 percent YoY from Rs. 128 crore but declining 9.5 percent QoQ from Rs. 274 crore, while net profit stood at Rs. 19 crore, up 280 percent YoY from Rs. 5 crore and 26.7 percent QoQ from Rs. 15 crore, reflecting strong profitability despite a sequential dip in revenue.
At the moment, the company’s P/E stands at 13.6x lower than the industry average of 24.2x. ROE and ROCE of 36.7 percent and 31.4 percent respectively, indicates the company’s financial performance. Its Debt to Equity ratio stands at 1.22.
Written by Akshay Sanghavi
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