In an earnings call following its June-quarter results, the company said it expects to fully recover steel price increases, including those incurred in Q1, over the coming quarters. It also expects to see a double-digit improvement in EBIT margins, with the Engineering and Metal Formed Products businesses expected to return to their earlier margin levels.
The commentary comes after a mixed first quarter for the company. Tube Investments reported a 15% year-on-year decline in consolidated profit to ₹168.6 crore for the quarter ended June 30, 2026, compared with ₹198.9 crore a year earlier.
Revenue, however, rose 17% to ₹6,215.1 crore from ₹5,309.1 crore. EBITDA remained broadly flat at ₹547.8 crore, against ₹546.2 crore in the year-ago quarter, while EBITDA margin contracted to 8.8% from 10.3%.
The company said its Cycles business recorded margin expansion in Q1 and is targeting at least a 2 percentage-point improvement in margins during the current financial year.
As of 2:21 PM on Monday, shares of Tube Investments of India Ltd. were trading at ₹2,738.80 on the NSE, down 0.12%, but above the day’s low of ₹2,685.55.
E-mobility losses near a turning point
The company’s e-mobility business also emerged as a key focus of the earnings call. Management said the business is “directionally past peak quarterly losses”, with one e-mobility business expected to reach break-even this year and two more expected to do so in the next financial year.TI Medical, meanwhile, is targeting 20% year-on-year revenue growth, adding another growth lever outside its larger engineering and industrial businesses.
At the segment level, Engineering revenue rose to ₹1,566.26 crore from ₹1,298.24 crore a year ago. Industrial Systems revenue increased to ₹1,789.54 crore, while Power Systems revenue rose to ₹1,398.24 crore.
Metal Formed Products reported revenue of ₹407.79 crore, compared with ₹365.76 crore a year earlier. Mobility revenue increased to ₹250.42 crore from ₹198.71 crore, while Electric Vehicles revenue rose sharply to ₹239.20 crore from ₹135.44 crore.
Gears and Gear Products revenue declined to ₹115.13 crore from ₹134.70 crore, while Semiconductor revenue fell to ₹94.03 crore from ₹108.49 crore. Medical revenue, however, rose to ₹58.57 crore from ₹47.53 crore.
₹600-700 crore capex planned for FY27
Tube Investments plans to spend ₹600-700 crore in capex during the current financial year, excluding CG Power, with around ₹350 crore earmarked for Tube Investments and ₹100 crore for Shanthi Gears.
CG Power and Industrial Solutions, in which Tube Investments holds a 56.29% stake, reported consolidated revenue of ₹3,281 crore in the June quarter, up from ₹2,878 crore a year earlier. Its profit before tax rose to ₹423 crore from ₹364 crore.
Shanthi Gears, in which Tube Investments holds a 70.46% stake, reported revenue of ₹115 crore against ₹135 crore a year ago, while profit before tax declined to ₹14 crore from ₹31 crore.