Synopsis:
Shares rose 3% after a mutual fund acquired a 0.55% stake via a bulk deal worth ₹312.3 crore. Despite a slight profit dip, the firm shows strong revenue growth, strategic expansion, and promising outlook across engineering, EV, medical, and CDMO segments.
The shares of the prominent auto ancillary gained up to 3 percent from the intraday low after Motilal Oswal Mutual Fund acquired an additional 10.7 lakh shares via a bulk deal.
With a market capitalization of Rs 56,929.98 crore, the shares of Tube Investments of India Ltd were trading at Rs 2,942.15 per share, decreasing around 0.91 percent as compared to the previous closing price of Rs 2,969.25 apiece.
According to the exchange, Motilal Oswal Mutual Fund has acquired an additional 10.7 lakh equity shares, which is equivalent to a 0.55 percent stake in the company, at an average price of Rs 2,919.02 per share. This deal is valued at Rs 312.3 crore. Earlier, Motilal Oswal held 22,98,040 equity shares, which is equivalent to 1.19 percent of the company.
Looking forward, the company posted a 16% year-on-year revenue growth in Q1FY26, rising from ₹4,578 crore to ₹5,309 crore, indicating strong top-line momentum. However, net profit declined 4% to ₹303 crore, down from ₹317 crore, reflecting margin pressures or higher costs despite improved sales performance.
The engineering division shows steady progress with increased domestic market share and capacity expansion through the new Nasik facility, though full benefits are expected by Q3FY26. Large diameter tube operations are also on track, awaiting approvals that could boost both revenue and margins in the near term.
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The MFPD segment faced margin pressures due to fewer railway orders but is poised for a turnaround with a ₹1,000 crore order. TI Cycles returned to profitability with strong export focus, while the medical and CDMO segments anticipate growth post-certifications and plant readiness, aiming for a meaningful ramp-up from FY27.
The company aims to achieve operational EBITDA break-even in at least two of its four EV businesses by FY26, though full break-even for TICMPL is unlikely within the year. While fixed costs remain high, revenue scaling is expected to absorb them. Strategically, it targets $1 billion in revenue over 3–4 years, with leadership ambitions across segments.
The company has earmarked ₹300 crore for core business capex in FY26, reflecting its commitment to strengthening foundational operations. Additionally, it plans to invest further in TI Medical, CDMO, and emerging opportunities. Post-stabilization, the company expects new investments to deliver a robust return on capital employed (ROCE) of over 25%, signaling disciplined capital allocation.
Tube Investments of India Limited is an engineering company, which is engaged in manufacturing precision steel tubes and strips, automotive, industrial chains, car door frames, and bicycles.
Written by Abhishek Singh
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