Q2 FY27 results analysis · November 05, 2026
Tube Investments of India Ltd (TIINDIA) Q2 FY27 Results Analysis: PAT Jumps 39%, Margin Compresses 297 bps
+39.2%PAT year on year, Rs. 420.58 Cr
Source: Quarterly results filing (BSE)
Quick summary
Tube Investments of India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 7,330.31 Cr (+32.73% YoY) and PAT growth of +39.24% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,330.31 Cr (+32.73% YoY) |
| PAT (Q2) | Rs. 420.58 Cr (+39.24% YoY) |
| EBITDA margin | 10.02% (-4 bps YoY) |
| EPS (Q2) | Rs. 12.87 (+33.40% YoY) |
Quarter Snapshot
Consolidated revenue grew 32.73% YoY with PAT up 39.24%, led by Power Systems (25.03% margin, +452 bps YoY) and EV revenue nearly doubling QoQ, while H1 standalone revenue of +23.05% runs well ahead of the 10% FY27 guidance. However, standalone PBT growth of +1.09% YoY misses the 12–14% guidance as steel-cost inflation compressed standalone EBITDA margin 297 bps YoY, and consolidated H1 FCF was negative at Rs.(443.01) Cr on working-capital build. The investment case hinges on the two-to-three quarter steel pass-through normalizing Engineering margins and the EV loss plateau converting into the guided FY27 breakeven.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "Revenue / demand: likely ahead" on strong capital-goods IIP | Consolidated +32.73% YoY, standalone +27.92% | Played out |
| Margins | First pass-through evidence, "the Aug–Sep input spike raises the bar" | MFP 6.76% → 10.44% QoQ; Engineering 9.77% → 9.36% QoQ | Partially |
| EV loss | Watch vs Rs.147.32 Cr Q1 loss; "past peak" holding | Rs.(146.47) Cr, −0.6% QoQ, revenue +98.9% QoQ | Partially |
| Battery cells | "still rising, not cooling" | Semiconductors loss wider YoY (−34.15 vs −21.73) | Played out |
| Standalone PBT vs 12–14% guide | "tested harder on the cost side" | H1 −1.40% YoY; Q2 +1.09% | Contradicted |
| Shanthi Gears stabilization | Watch after the stake raise | Revenue Rs.128 vs Rs.132 Cr YoY | Contradicted |
| US tariff overhang; railway kick-in | Fresh unquantified overhang; early-FY27 kick-in | Not addressed in the filing | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Standalone FY27 revenue growth 10% | management guidance, Q1 FY27 earnings call (refined from Q4 FY26) | H1 standalone revenue +23.05% YoY; Q2 +27.92% | On Track |
| Standalone FY27 PBT growth 12–14% | management guidance, Q1 FY27 earnings call | H1 standalone PBT −1.40% YoY; Q2 +1.09% — H1 checkpoint | Missed |
| Steel-price margin recovery, "margin neutralization… in the coming quarters", double-digit EBIT margin growth | MD Mukesh Ahuja, Q1 FY27 earnings call | MFP margin 6.76% → 10.44% QoQ; Engineering 9.36%, still −253 bps YoY; standalone PBT margin 9.34% vs 11.82% — partial; Engineering not yet normalized | On Track |
| One EV business breaks even in FY27; two more FY28 | management commentary, Q1 FY27 earnings call | EV PBIT loss Rs.(146.47) Cr, −0.6% QoQ on revenue +98.9% QoQ | Too Early |
| Rs.250 Cr new-venture infusion in Q3 FY27 (of Rs.750 Cr) | management commentary, Q1 FY27 earnings call | Rs.250 Cr Series C CCPS allotted 29 Sep 2026 (filing note) | On Track |
| Capex: ~Rs.350 Cr standalone / ~Rs.100 Cr Shanthi Gears / Rs.600–700 Cr group ex-CG Power | management guidance, Q1 FY27 earnings call | Standalone H1 capex Rs.158.46 Cr; Rs.83 Cr Avadi approval adds to the frame | On Track |
| Shanthi Gears order-book revival in "one or two quarters" (stated Feb 2026) | management commentary, Q3 FY26 earnings call | SGL Q2 revenue Rs.128 Cr vs Rs.132 Cr; PBT Rs.20 Cr vs Rs.29 Cr | Missed |
| EV business "likely past peak quarterly losses" | Q1 FY27 earnings call | Loss Rs.(146.47) Cr vs Rs.(147.32) Cr QoQ — plateau, not decline; revenue doubled QoQ | Partially |
| "Margin neutralization will happen in the coming quarters" | Q1 FY27 earnings call | MFP normalized; Engineering margin still slipped QoQ; standalone margin −297 bps YoY | Partially |
| Shanthi Gears slowdown "temporary… maybe another one or two quarters" | Q3 FY26 earnings call (Feb 2026) | Still down YoY on both lines, margin −588 bps YoY | Contradicted |
Key Investment Insights
Key Positives
- Consolidated revenue grew 32.73% YoY to Rs.7,330.31 Cr and 17.94% QoQ
- Consolidated PAT grew 39.24% YoY to Rs.420.58 Cr; owners' PAT grew 33.44% YoY to Rs.249.07 Cr
- Power Systems PBIT of Rs.442.25 Cr at a 25.03% margin, up 452 bps YoY, on revenue +40.8% YoY
- Electric Vehicles revenue grew 168.3% YoY to Rs.475.78 Cr while PBIT loss narrowed 7.2% YoY to Rs.(146.47) Cr
- Metal Formed Products margin recovered from 6.76% in Q1 FY27 to 10.44%, within 44 bps of the year-ago 10.88%
- H1 standalone revenue +23.05% YoY vs management's 10% FY27 growth guidance
- Net-cash balance sheet: borrowings Rs.502.42 Cr vs cash plus bank balances of Rs.1,193.18 Cr
- Clean quarter with no exceptional items; reported PAT equals normalized PAT
Risk Factors
- Standalone EBITDA margin compressed 297 bps YoY to 10.08% as materials cost grew 40.26% vs revenue growth of 27.92%
- Standalone PBT grew only 1.09% YoY in Q2 and declined 1.40% YoY in H1, missing management's 12–14% FY27 PBT growth guidance
- Gears and Gear Products revenue declined 3.0% YoY with margin down 588 bps YoY to 15.92%; Shanthi Gears PBT Rs.20 Cr vs Rs.29 Cr
- Semiconductors PBIT loss widened 57.2% YoY to Rs.(34.15) Cr
- Consolidated H1 FCF was negative at Rs.(443.01) Cr with CFO/PAT at 0.61x on receivables and inventory build
- Engineering segment margin slipped to 9.36%, down 253 bps YoY, with steel pass-through not yet visible in margin terms
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.