Tembo Global Industries: Powering Ahead with Robust Q3 & 9M FY26 Performance

Tembo Global Industries Ltd. (NSE: TEMBO), a prominent engineering-driven industrial solutions provider, has reported a strong financial performance for the third quarter and nine months ended December 31, 2025. The company's results underscore its strategic focus on diversified growth, operational efficiency, and expanding into high-potential sectors. This period highlights consistent execution across its core Engineering Solutions and Textiles divisions, alongside significant advancements in its new Defence and Solar Power ventures.

For Q3 FY26, Tembo Global Industries delivered a total revenue of INR 250.7 crore, marking a substantial 49.5% year-on-year growth. The nine-month period (9M FY26) saw revenue reach INR 744.2 crore, an impressive 58.6% increase compared to the previous year. This growth was primarily fueled by healthy project activity and improved scale across its core businesses. EBITDA for Q3 FY26 stood at INR 43.2 crore, up 41.9% YoY, while 9M FY26 EBITDA rose by 64.7% to INR 103.5 crore. Profit After Tax (PAT) for Q3 FY26 increased by 36.7% to INR 26.1 crore, and for 9M FY26, PAT grew by 74.2% to INR 68.2 crore. Despite strong growth, Q3 FY26 saw a slight contraction in EBITDA and PAT margins YoY, though 9M FY26 EBITDA margin expanded by 52 bps to 13.9%.

Strategic Expansion and Operational Milestones

Tembo Global Industries has been actively pursuing strategic initiatives to enhance its market position and diversify its revenue streams. A major operational highlight was the commencement of commercial production at its new Vasai facility in January 2026. This state-of-the-art plant significantly scales Tembo's installed capacity from 18,000 MT to approximately 1,00,000 MT, with an anticipated peak revenue potential of INR 700 crore annually within the next two to three years. The facility's in-house R&D centre and strategic location are expected to bolster product innovation and cost competitiveness.

The company's foray into new verticals, Defence and Solar Power, is progressing well. In the solar business, land has been acquired across 24 sites, and the first tranche of project financing has been secured. A 120 MW Power Purchase Agreement (PPA) has been signed with the Maharashtra Government, with commissioning targeted for Q1 FY27, projecting an annual revenue of INR 75-90 crore and a subsidy of INR 110 crore. For defence manufacturing, Tembo Classic Engineering Private Limited (formerly Tembo Defence Products Private Limited), a subsidiary, has successfully received the Defence Manufacturing Licence from the Government of Maharashtra. This follows an MoU signed at the World Economic Forum 2025 in Davos and positions Tembo to begin commercial production by Q3 2026, with an annual revenue potential of INR 300 crore from the first stage.

Robust Order Book and Future Outlook

Tembo's revenue visibility is further strengthened by a robust consolidated order book of approximately INR 1,484 crore as of December 2025, predominantly from Engineering and EPC projects. The company is also in active discussions for potential projects in port construction and fuel farm systems, representing an INR 700+ crore opportunity pipeline. The total order bidding pipeline, including L1 (lowest bidder) projects, stands at INR 2,185 crore, promising strong multi-year revenue visibility.

Management has provided optimistic guidance for the future, targeting a 35-40% growth from current levels for the next year and PAT margins of 10-12%. The company's focus remains on disciplined execution, capability building, and long-term value creation. The Board-approved merger of Tembo Infra with Tembo Global Industries, now filed with the NSE, is expected to further enhance EPC execution, revenue, and operational efficiency.

While the company maintains stable working capital, the high working capital days (89 days in H1 FY26) due to extended credit periods in EPC projects are acknowledged. However, the company's strategy of funding working capital through internal accruals and bank borrowings, along with equity infusion, demonstrates a pragmatic approach to supporting its growth roadmap. Tembo Global Industries is strategically positioned to capitalize on India's infrastructure growth and 'Make in India' initiatives, ensuring sustained value creation for its stakeholders.