TIINDIA - Tube Investments of India Ltd Share Price

In the Q2 FY2026 earnings call held on November 5, 2025, Tube Investments of India Limited presented a positive outlook. The management reported standalone revenue of Rs.2,119 crores for the quarter, up from Rs.2,065 crores year-on-year, with a profit before tax (PBT) of Rs.250 crores compared to Rs.225 crores in the previous year, marking an 11.5% growth. The return on invested capital (ROIC) stood at 44% for the quarter, with free cash flow at Rs.183 crores.

The engineering division's revenue was Rs.1,382 crores, a slight increase from Rs.1,323 crores, while the mobility business, notably bicycles, saw revenue rise to Rs.194 crores from Rs.168 crores, resulting in a profit before interest and tax (PBIT) of Rs.4 crores, improving from a loss of Rs.0.36 crores. At a consolidated level, the company's revenue reached Rs.5,523 crores with a PBT of Rs.459 crores, compared to Rs.426 crores the prior year.

Management highlighted robust demand trends, particularly noting an uptick post-GST reductions, especially during festival months, indicating potential for sustained growth. They expect a 10%-12% revenue growth in the core business going forward, coupled with expanded investments of Rs.300-400 crores focused on standalone growth, medical division expansions, and potential acquisitions in aligned sectors.

In electric mobility, while competitive pressures are noted, management reported maintaining over 50% market share in electric trucks and emphasized confidence in product performance exceeding customer expectations. Future plans include new launches and product variants to continue capturing market share.

For the medical segment, they are targeting a 15% growth, with new product developments underway to rejuvenate performance. Overall, the outlook remains optimistic, with growth strategies outlined across multiple segments.

Question 1: "What is the market size of the industrial chains and other businesses associated with it, including the two-wheeler chains? Have we lost market share?"

Answer 1: "The industrial chain market size is about Rs. 900 Crores, and we maintain a nearly 50% market share. Our share is stable, and we have not lost any ground in the auto chains segment either; in fact, we have seen marginal improvement in market share."

Question 2: "How has the GST cuts affected our growth projections for FY2026 or FY2027 compared to three months ago?"

Answer 2: "Post-GST cuts in September, we observed a significant uptick in demand, especially during October and November, influenced by the festival season. We remain optimistic about sustaining this growth, although we are closely monitoring how it evolves in the coming months."

Question 3: "With the recent GST cuts on ICE vehicles, have you seen an impact on EV sales?"

Answer 3: "Yes, the reduced pricing of ICE vehicles has made them more competitive. This has varied impacts across segments; while it minimally affects e-tractors and small commercial vehicles, it significantly impacts three-wheelers. Nonetheless, we can manage this with our existing EV offerings."

Question 4: "Can you share the Q2 volume figures for your EV segments, such as trucks and three-wheelers?"

Answer 4: "For Q2, we recorded 2,082 units for three-wheelers, 44 units for HCVs, 167 units for small commercial vehicles, and 100 units for e-tractors. This quarter was one of our strongest, with a 21% year-on-year revenue increase."

Question 5: "What is the growth strategy for the mobility segment, including the impact of market share gains?"

Answer 5: "Our growth strategy in mobility focuses on specialized bikes and the introduction of e-bikes. This shift has enhanced our margins. We believe this growth trajectory is sustainable due to strong demand and effective marketing of our new products."

Question 6: "What is the impact of increased tariffs on exports to the US?"

Answer 6: "Exports to the US, which contribute about 4-5% of our revenue, experienced a slowdown of around 10% in Q2 due to increased tariffs. The OEM channels are stable, but the distributor market has faced challenges, influencing our overall performance there."

Question 7: "What updates can you give on the railway business and its expected revenue contributions?"

Answer 7: "We expect delays in realizing revenue from the railway business, with a likely shift to Q1 next year due to supply chain issues among other suppliers. However, we are prepared and ready to start fulfilling our commitments when conditions allow."

Question 8: "What is your projection for capacity utilization in the engineering division?"

Answer 8: "Currently, we are operating at 80-85% capacity utilization, and our capacity is secured for the next 1-2 years with new plants coming online, enabling us to meet future growth demands effectively."

Question 9: "What are the growth targets for the medical division?"

Answer 9: "We target a growth rate of over 15% for the surgical segment in TI Medical. We're also developing new product lines to enhance our offerings and expand our market coverage in this division."

Question 10: "What is the plan for capital allocation moving forward?"

Answer 10: "We plan to invest around Rs. 300-400 Crores for base business expansion and growth initiatives, including TI Medical and 3XPER. We are also considering M&A opportunities for additional growth in aligned sectors."