Tube Investments Q1 Revenue Rises 16% YoY to ₹5,309 Crore

3 Aug 2025 , 06:13 PM

Tube Investments of India Ltd posted a steady topline growth in the first quarter of FY26. The company’s consolidated revenue rising 16% year-on-year to ₹5,309 crore. This is compared to ₹4,578 crore in the same quarter last year. The company credited the growth to a generally strong performance across most of its core verticals.

However, profitability took a hit, with net profit falling 12.3% YoY to ₹199 crore. This is down from ₹227 crore a year ago.  Operating profit (EBITDA) came in at ₹546 crore. This is showing a modest rise from ₹532 crore in the year-ago period. But the EBITDA margin narrowed to 10.3%. The EBITDA slips from 11.6%, as expenses outpaced income growth.

Total expenditure surged by more than 18% to ₹4,931.5 crore. This is up from ₹4,172.16 crore in the previous year’s June quarter. A spike in input and operational costs weighed on the company’s financial efficiency despite the top-line boost.

Among the group’s subsidiaries, CG Power and Industrial Solutions Ltd where Tube Investments holds a 58% stake emerged as a standout performer. CG Power’s revenue climbed to ₹2,878 crore. This is up from ₹2,228 crore, while profit before tax rose to ₹364 crore. The surge is highlighting continued strength in the industrial and power equipment space.

Shanthi Gears, another group company, saw a marginal dip in revenue to ₹135 crore, but managed to post a higher pre-tax profit of ₹31 crore, indicating improved operational efficiency even amid flat sales.

Breaking down the performance by segment, the engineering division reported revenue of ₹1,298 crore, slightly up from ₹1,265 crore a year ago. Other divisions, including metal formed products, mobility, and emerging businesses, also registered moderate growth during the quarter.

However, one of the more notable figures this quarter was the decline in annualised Return on Invested Capital (ROIC), which slipped to 39%, down from 47% in the same quarter last year. The drop points to the pressure on capital productivity amid rising costs and investment outflows.

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