Tembo Global Industries Ltd – Investor Presentation Summary

Key Operational Highlights

  • Revenue mix shifted dramatically to Engineering & EPC at 99:1 from 44:56 in Q1FY26, reflecting strategic focus.
  • Order book exceeded ₹1,500 Crores as of June 30, 2026, with bidding pipeline over ₹2,400 Crores.
  • New manufacturing capacity of 1,00,000 MTPA commissioned in Vasai in January 2026 with ₹75 Crores capex.
  • Defence segment secured ammunition manufacturing licence through TCEPL and acquired land in Amravati, Maharashtra.
  • Solar power: 4 project sites operational in August 2026, remaining 26 sites expected commissioning in Q2FY27.
  • UAV component manufacturing at Vasai facility scheduled to commence in Q3FY27.

Key drivers of operational performance: Continued expansion of high-margin Engineering & EPC business, improved operating efficiencies, and strategic diversification into defence and solar.

Segment-wise Performance

  • Engineering & EPC: Primary growth driver with demand across oil & gas, marine, water infrastructure, and industrial sectors. EBIT margin of 21.9% in FY26. Expected revenue contribution of 75% in FY27.
  • Textiles: Legacy business with EBIT margin of 1.8% in FY26. Expected revenue contribution of 10% in FY27.
  • Defence & Aerospace: New segment with expected revenue contribution of 10% in FY27. UAV joint venture targeting approximately ₹100 Crores revenue in first year of operations.
  • Solar Power: Expected revenue contribution of 5% in FY27. Revenue potential of ~₹80 Crores in FY27.

Explanation of significant changes in segment performance: Dramatic shift from textiles to engineering driven by strategic focus on margin-accretive projects and EPC capabilities.

Financial Highlights

Revenue: ₹302.4 Crores

EBITDA: ₹49.2 Crores

PAT: ₹31.2 Crores

EPS: ₹1.45

Margins: Gross Profit Margin 32.1%, EBITDA Margin 16.3%, PAT Margin 10.3%

YoY comparison: Revenue growth 21.9%, EBITDA growth 74.8%, PAT growth 55.3%

QoQ comparison: Revenue decline (12.6%), EBITDA growth 26.2%, PAT growth 3.8%

Drivers of financial performance: Growth in engineering division, operational efficiencies, better margins in engineering & EPC segment.

Key Risks: Not explicitly disclosed in presentation.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified in quantitative terms, but company has global presence with exports to USA, Middle East, and 30+ countries.

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly calculated, but debt stood at ₹377 Crores against equity of ₹492 Crores as of March 31, 2026.

Reserves: Not separately specified

Current Assets/Liabilities: Current Assets ₹1,088 Crores, Current Liabilities ₹568 Crores as of March 31, 2026

Working Capital/Leverage Metrics: High working capital to execute LC-backed EPC order book, maintained higher inventory for growing order book.

Financial Health Insights: Zero risk trade receivables backed by 90-180 days Letter of Credit (LC), working capital funded by short-term & long-term borrowings and equity infusion.

Capex & Cash Flow Health

Capital Expenditure: ₹75 Crores incurred for Vasai facility

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not specified

Investment Rationale: Capacity expansion, technology upgrades, diversification into high-margin businesses including ERW Pipes and defence.

Strategic & R&D Initiatives

Investments in Innovation: New products pipeline including ERW Pipes (60,000 MTPA capacity) and Strut Channels (30,000 MTPA capacity).

Expected impact on growth: Vasai capacity's revenue potential at peak utilization: ₹700 Crores.

Strategic Rationale: Expanding into high-growth markets like defence and aerospace, reducing operational costs through integrated manufacturing.

Industry Trends & Business Environment

Macro/Industry Trends: Government's increasing focus to source quality and 'Made in India' defence products, growing infrastructure sector.

Impact on Company: Benefiting from Atmanirbhar Bharat and Make in India opportunities in defence sector, strong demand across oil & gas, marine, and infrastructure sectors.

Management Commentary & Growth Outlook

Strategic Outlook: "FY27 has started on a strong note...the Company remains confident of achieving its FY27 revenue guidance of INR 1,600 Crores."

FY Guidance: Revenue target of ₹1,600 Crores for FY27, vision of ₹5,000+ Crore by FY31.

Market Share Targets: Not specified

Risks and Opportunities: Not explicitly highlighted beyond general forward-looking statement disclaimer.

Additional Headings

Defence Manufacturing Expansion

  • Land acquired in Amravati, Maharashtra; construction expected to begin by August 2026 end
  • Commercial production targeted from Q1 FY28
  • Strategic partnership with leading European company including buy-back arrangement for 100% production output
  • Capex outlay: ₹1,000 Crores for defence products manufacturing unit

Leadership Team

  • Senior EPC team with extensive experience in ports, fuel farm, jetty, and infrastructure projects
  • Defence leadership includes retired army officers with procurement and technical expertise
  • Solar sector professional with 16 years of experience leading renewable energy initiatives