Tube Investments Q4 FY26: Revenue up, Rs 1.5 dividend

Board outcome: results approval and dividend recommendation

Tube Investments of India (TII) said its Board of Directors met and approved financial results for the quarter and year ended 31 March 2026. The board had declared and paid an interim dividend of Rs 2 per share in February 2026. It has now recommended a final dividend of Rs 1.50 per share for FY25-26. Separately, the company calendar showed an ex-dividend date entry of “Aug. 07” against a dividend of Rs 1.5.

Standalone performance: Q4 and FY26

On a standalone basis, TII reported Q4 revenue of Rs 2,279 crore, compared with Rs 1,957 crore in the same period of the previous year. Full-year standalone revenue was Rs 8,556 crore versus Rs 7,893 crore in the previous year. Profit before tax (PBT), before exceptional items and fair value gain on CCPs, stood at Rs 361 crore for Q4 versus Rs 327 crore a year ago. For the full year, the same PBT metric was Rs 1,099 crore, compared with Rs 975 crore in the previous year.

Return on invested capital (ROIC) for the year ended 31 March 2026 was reported at 44%, unchanged from the previous year’s 44%. The company also reported free cash flow of Rs 313 crore for the quarter.

Segment snapshot: engineering remained the largest contributor

TII’s segment disclosures highlighted engineering, metal form products, mobility and “others.” Engineering revenue for the quarter was Rs 1,499 crore compared with Rs 1,299 crore in the corresponding quarter of the previous year, while PBIT rose to Rs 176 crore from Rs 142 crore. For the full year, engineering revenue was Rs 5,612 crore versus Rs 5,200 crore, and PBIT was Rs 689 crore compared with Rs 617 crore.

Metal form products reported quarterly revenue of Rs 421 crore versus Rs 403 crore, while quarterly PBIT was Rs 35 crore against Rs 39 crore. For the full year, revenue was Rs 1,603 crore versus Rs 1,565 crore and PBIT was Rs 162 crore compared with Rs 161 crore.

Mobility business revenue for the quarter rose to Rs 208 crore from Rs 181 crore, while quarterly PBIT was Rs 4 crore, unchanged year-on-year. For the full year, mobility revenue was Rs 783 crore compared with Rs 671 crore and PBIT improved to Rs 19 crore from Rs 5 crore.

The “others” segment posted quarterly revenue of Rs 246 crore versus Rs 244 crore and PBIT of Rs 16 crore compared with Rs 13 crore. For the full year, revenue was Rs 923 crore versus Rs 987 crore, and PBIT was Rs 70 crore compared with Rs 48 crore.

Consolidated numbers: revenue and operating profit higher

TII reported consolidated revenue of Rs 6,215 crore for the quarter, up from Rs 5,150 crore in the corresponding quarter of the previous year. The PBIT before share of profit of associates/joint ventures, exceptional items, loss on fair value of CCPs and tax was Rs 516 crore for the quarter versus Rs 479 crore a year ago.

For the year ended 31 March 2026, consolidated revenue was Rs 22,847 crore compared with Rs 19,465 crore in the previous year. The profit before share of profit of associates/joint ventures, exceptional items, loss on fair valuation of CCPs and tax was Rs 1,937 crore versus Rs 1,801 crore.

Subsidiaries: CG Power grew, Shanti Gears declined

CG Power and Industrial Solutions Ltd, a subsidiary in which TII holds a 56% stake, reported consolidated revenue of Rs 3,442 crore for the quarter compared with Rs 2,753 crore a year ago. Profit before exceptional items and tax for the quarter was Rs 490 crore versus Rs 384 crore.

For FY26, CG Power’s consolidated revenue was Rs 12,418 crore compared with Rs 9,909 crore in the previous year, while profit before exceptional items and tax was Rs 1,662 crore versus Rs 1,348 crore.

Shanti Gears Ltd (70% stake) reported quarterly revenue of Rs 135 crore versus Rs 153 crore, and profit before exceptional items and tax of Rs 25 crore compared with Rs 31 crore. For FY26, Shanti Gears revenue was Rs 519 crore versus Rs 605 crore, and PBT was Rs 107 crore compared with Rs 130 crore.

Key management commentary: volumes, costs and production constraints

In the Q&A, management said there were no major price movements in Q4, and indicated that the reported sales growth for the engineering business was broadly in line with volume growth.

On near-term conditions, management said volume growth was “still on the stronger side” even as commodity price increases and the macro environment remained a challenge. The company said commodity cost increases are typically recovered from customers through contracts, sometimes with a one-to-two-to-four month lag. It also flagged fuel inflation as an immediate issue it had taken up with customers, alongside internal cost-reduction efforts.

On one business line discussed on the call, management said it took a short-term hit in Q4 because it could only produce 50% of what it could have otherwise, affecting both billings and dealer retail. It said the issue has been resolved and it expects to be back to normal production capacity by the end of Q1.

New initiatives: CDMO timeline, TI Medical outlook and capex

Management said the CDMO plant is under final commissioning and commercial production from its Naidupeta facilities is expected to start next quarter.

On TI Medical, management reiterated guidance for wound care (suture business) growth in the range of 15% to 20%. It also said it completed a small transaction described as an asset purchase for the IV cannula business, with plant approvals and related work to be completed during the quarter, after which it expects incremental contribution. Management added it remains “bullish” on TI Medical and is “hopeful” of 20% year-on-year growth going forward.

For FY27, management guided core standalone capex in the range of Rs 300-350 crore. It also indicated an additional rough estimate of around Rs 300 crore going into subsidiaries, citing scaling needs for TI Clean Mobility and TI Medical.

Market snapshot: stock move and reported earnings metrics

The stock data shown alongside the results indicated Tube Investments of India closed at Rs 2,800.80, down 4.77% on the day, with a 5-day change of -3.98% and a 1st Jan change of +7.14%.

S&P Capital IQ figures cited in the same material showed quarterly revenue (converted to Rs crore) of Rs 6,331.83 crore compared with Rs 5,308.21 crore a year ago, and net income of Rs 85.45 crore compared with Rs 46.53 crore. For the full year, it showed revenue of Rs 23,234.64 crore compared with Rs 19,835.71 crore and net income of Rs 636.84 crore compared with Rs 673.71 crore.

Summary table: key reported numbers (Rs crore)

What investors will track next

Near-term focus areas flagged on the call included the pace of volume growth, the timing of pass-through for commodity costs, and the resolution of fuel inflation pressures through customer discussions and internal cost actions. Operationally, management’s timeline for returning to normal production capacity by the end of Q1 is another data point investors will watch.

In the new initiatives bucket, commissioning of the CDMO plant and the start of commercial production next quarter are key milestones. Guidance on FY27 capex and planned subsidiary investments also frames how the company is allocating capital across core businesses and newer growth areas.