Earnings Call Q4 - Transcript
TIINDIA · price
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Tube Investments reported strong Q4 FY2026 results with standalone revenue of Rs.2,279 Crores (up 16% YoY) and full year revenue of Rs.8,556 Crores. ROIC remained at 44% with free cash flow of Rs.826 Crores equal to 100% of PAT. Engineering business drove growth with Q4 revenue of Rs.1,495 Crores, while the EV mobility business reported Rs.208 Crores revenue with Rs.4 Crores PBIT - still in scaling phase. Management indicated volume growth remains strong but faces commodity and fuel price inflation challenges with 1-2 quarter lag in cost recovery from customers. The railway business remains in product development stage awaiting government approvals for Vande Bharat coaches. The three-wheeler supply issue was resolved by taking over the body-in-white supplier facility. Capex guidance for FY2027 is Rs.300-350 Crores for standalone and Rs.300 Crores for subsidiaries.
The company delivered solid earnings growth with strong cash generation, though the EV business is still loss-making and railway business is not yet scaled up. The stock appears fundamentally strong with 44% ROIC but faces near-term margin pressure from commodity inflation.