On behalf of IIFL Capital, I welcome you all to the 4Q FY26 results conference call of Tube Investments of India Limited. From the management, we have with us Mr.

M. A.

M. Arunachalam, Executive Chairman; Mr.

Mukesh Ahuja, Managing Director; Mr. A.

N. Meyyappan, Chief Financial Officer, as well as other divisional heads.

I will now hand over the call to the management for opening remarks, post which we will take Q&A.

Good evening. The Board of Directors of Tube Investments of India met today and approved the financial results of the quarter and year ended 31st March, 2026.

The Board has declared and paid an interim dividend of ₹2 per share in February 2026. The Board has now recommended a final dividend of ₹1 50 paise per share for the financial year 2025-26.

The standalone results for the quarter: The revenue in Q4 was ₹2,279 crore compared to ₹1,957 crore of same period in previous year. The revenue for the full year was ₹8,556 crore against ₹7,893 crore of previous year.

PBT before exceptional items and fair value gain on CCPS for the quarter was at ₹361 crore compared to ₹327 crore of the same period in previous year. PBT before exceptional items and fair value gain on CCPS for the full year was ₹1,099 crore as against ₹975 crore of previous year.

ROIC stood at 44% for the year ended 31st March, 2026 compared to 44% reported in the previous year. Free cash flow for the quarter was ₹313 crore.

Cumulative free cash flow for the year was ₹826 crore, that is 100% of PAT. Reviewing the businesses: Engineering: The revenue for the quarter was ₹1,499 crore compared to ₹1,229 crore in the corresponding quarter of the previous year.

Profit before interest and tax for the quarter was ₹176 crore against ₹142 crore in the corresponding quarter of the previous year. The revenue for the full year was ₹5,612 crore compared with ₹5,029 crore in the previous year.

Profit before interest and tax for the full year was ₹689 crore compared to ₹617 crore in the previous year. Metal Formed Products: The revenue for the quarter was ₹421 crore compared with ₹403 crore in the corresponding quarter of the previous year.

Profit before interest and tax for the quarter was ₹35 crore against ₹39 crore in the corresponding quarter of the previous year. The revenue for the full year was ₹1,603 crore compared to ₹1,565 crore in the previous year.

Profit before interest and tax for the full year was ₹162 crore as against ₹161 crore in the previous year. Mobility business: Revenue for the quarter was ₹208 crore compared with ₹181 crore in the corresponding quarter of the previous year.

Profit before interest and tax for the quarter was ₹4 crore compared to ₹4 crore in the corresponding quarter of the previous year. Revenue for the full year was ₹783 crore compared with 67- ₹671 crore in the previous year.

Profit before interest and tax for the full year was ₹19 crore against a ₹5 crore in the previous year. The Others: The revenue for the quarter was ₹246 crore compared with ₹244 crore in the corresponding quarter of the previous year.

Profit before interest and tax for this quarter was ₹16 crore against ₹13 crore in the corresponding quarter of the previous year. Revenue for the full year was ₹923 crore compared with ₹987 crore in the previous year.

PBIT was ₹70 crore against ₹48 crore in the previous year. Now the consolidated results: TII's consolidated revenue for the quarter was ₹6,215 crore against ₹5,150 crore in the corresponding quarter of the previous year.

The PBIT before share of profit of associate, joint ventures, exceptional items, loss on fair value through CCPS, and tax for the quarter was ₹516 crore against ₹479 crore in the corresponding quarter of the previous year. For the year ended 31st March, 2026, TII's consolidated revenue for the year was ₹22,847 crore against ₹19,465 crore in the previous year.

The profit before share of profit of associate, joint ventures, exceptional items, loss on fair value issue of CCPS, and tax was ₹1,937 crore against ₹1,801 crore in the previous year. CG Power and Industrial Solutions Limited, a subsidiary company in which the company holds 56% stake, registered a consolidated revenue of ₹3,442 crore during the quarter against ₹2,753 crore in the corresponding quarter of the previous year.

Profit before exceptional items and tax for the quarter was ₹490 crore against ₹384 crore in the corresponding quarter of the previous year. For the year ended 31st March, 2026, CG's consolidated revenue for the year was ₹12,418 crore against ₹9,909 crore in the previous year.

The profit before exceptional items and tax was ₹1,662 crore as against ₹1,348 crore in the previous year. Shanthi Gears Limited, a subsidiary company in the gears business in which the company holds 70% stake, registered revenue of ₹135 crore during the quarter against ₹153 crore in corresponding quarter of the previous year.

Profit before exceptional items and tax for the quarter was ₹25 crore against ₹31 crore in the corresponding quarter of the previous year. For the year ended 31st March, 2026, SGL's revenue was at ₹519 crore as against ₹605 crore in the previous year.

The PBIT was ₹107 crore against ₹130 crore in the previous year. With me, I have Mr.

Mukesh Ahuja, Managing Director; Meyyappan, CFO of TII; also have Mr. Jalaj Gupta, MD of TI Clean Mobility; and Gopal, CFO of Clean Mobility, along with a few team members.

We're ready to take your questions now.

Hi. Thank you.

I have two, three points to touch upon. One is, can you help us with the underlying volume growth of the business, because the revenue growth obviously includes the pass-through of raw materials, etc.?

Joseph, can you come again, please?

Could you help us with the volume—

Is it better now?

Yes, better.

Okay. The first question was, if you could share the underlying volume growth in the engineering business.

It is almost in, because there were no major price movements in the quarter four. You can consider whatever the sales growth shown in the quarter four, it is in line with the volume growth only.

Thank you. The second question was, given the challenging macro environment, how are you seeing demand and volume growth, etc., in the early part of say 1Q FY27, because a lot of OEMs and businesses are hinting at challenges on growth, as well as on the cost side and pressure on margin, etc.?

If you can give some indication of how things are on the ground, both in terms of volume growth, as well as in terms of cost pressures?

Joseph, as of now, we see volume growth are still on the stronger side. We see the growth is pretty bullish, but like you said that, there is a challenge on the commodity price increases, along with the macro environment, fuel prices is a challenge in front of us.

Like you're aware of, commodity price increase we get it from our customers, because we have a contracts in place, which comes with sometimes, a one or two quarters lag, there'll be recovery. The immediate challenge is how to get the inflation on the fuel and this thing, which we have taken up with our customers.

We are hopeful, through either driving some cost reduction inside and taking up with the customer, which may have a little bit lag, we'll be able to cover that.

Thank you, sir. The last question that I had was on, if you can give an update on the scale-up of the railway business, which is something that you talked about in the last, I think, two, three quarters, but we are yet to see the scale-up there, some update on that.

Joseph, on that side, maybe there is no major update as of now. As of now, still we are at a product development stage, which we have completed, but customers where we are supplying, they have to get their product approved with the Government of India on the Vande Bharat coaches.

That process is on and it is a work in progress. Hopefully, we'll be able to see some progress down the line, two or three quarters from now.

Got it. Thank you.

That's all I have.

Am I audible?

Yes, Rushabh, you're audible.

Thank you for the opportunity. My first question was actually on the EV side.

Now that I believe the current, crude price volatility would have given a better pitch for the TCO on the EV side. How are we seeing the demand side especially on the HCV?

Is financing still an issue, what is stopping us from scaling up in the HCV side?

Yeah. Rushabh, thanks.

You are absolutely right. We are definitely seeing a upswing in the demand for the electric vehicles, especially in our heavy truck segment and also in the small commercial vehicle segment.

In fact, we are sitting on a very good order book for the big trucks. Coming to that challenges, the challenges is primarily on account of deployment, and in deployment, there are two parts to it.

One is financing, as you rightly said, because the average deployment is for about 50 to 100 trucks, which translates into about ₹100 crore plus kind of money which is required to be put by the service provider. Second is the challenges to set up the charging infrastructure for a given route.

These two are the challenges which we are working towards, and we are hopeful we will untangle that, because order book is good and we are hopeful to deploy these trucks in quarter one and quarter two.

On the long-haul side, I think we are trying to do battery swap in that side. What is the plan of action there, and can we see significant scale-up in this coming one or two years?

Rushabh, the situation has slightly changed with the introduction of higher-capacity batteries and the fast charging, which is now available as a technology. One of the positives of the swap is that it takes less than 7 to 10 minutes to do a swap.

The not-so-positive for swap is the huge setup cost which a charge swapping infrastructure requires. The judgment is still not out when you look at China as a market.

There also, at some point of time, it was a swapping technology which was more prevalent, but at this point of time, the trend seems to be tilting towards higher battery capacities and a fast charging as a solution. As far as we are concerned, we are not giving up on swap as a technology.

There would be applications like ports, etc., where swapping only will work. We are ready with our swap technology.

In fact, we are working on a couple of orders in our hand for the same, but going forward, it looks like that higher battery capacity and fast charging could be the way forward for long-haul.

Okay. Recently, there has been a news flow that the world's largest battery maker has commercialized sodium-ion technology.

How does this anyway change anything for us? If sodium-ion really does become mainstream in the coming future, does it anyway help us reduce the TCO?

Not immediately, because the technology getting translated into a cell and then coming onto the validation and the full-fledged implementation on the vehicle is a slightly long-drawn process. Maybe in times to come, yes, but immediately, no.

Just on the last question on the three-wheeler side, where are we on the three-wheeler? I think we had some issues, and we had resolved those issues.

Where are we on the scale-up on the three-wheeler auto side?

Three-wheeler in quarter three of this year, in quarter two of last financial year, we had introduced a upgraded version of the super auto, which has started gaining a good market traction. For us, one of the challenges having in our scale-up was on the supply side, was the body-in-white supplier, which we took a bold call in quarter four, despite it being in quarter four, that we will solve this issue once and for all, which I am glad that we have done.

We took a short-term hit. Our quarter four volume took a beating, because we could only produce 50% of what we could have produced otherwise, which took a toll on our both billing, as well as retails at the dealer end.

Now that issue is resolved, and I'm very confident that as we end this particular quarter, quarter one, we will be back to our normal production capacity on the supply side. Parallelly, on the demand side, the good news is that this new, improved version has found a good market acceptance, and we are very confident that you'll be able to see or you will be seeing good scale-up of volumes as we move forward on three-wheeler business.

Okay. Just the last question on the medical devices front, matlab, last I think one one year, we have been saying that we are expecting some certification and export, and I think that issue was also resolved, but we're not seeing significant scale-up in that business.

What is the reason and what is the outlook for that business, if you could please share?

Exports, like you rightly said, the regulatory things are already over, but we had a little bit headwind on Middle East business, which was also a good market, which we feel is a temporary, but we are able to scale up in the Europe, particularly, and Southeast Asian countries. Little got muted because of this war scenario.

What is the outlook for the business for the next year? Is there anything that you can share?

Matlab, or is the worst behind us or is it subject to the macro things? Or is there anything that we can do, matlab, identify new products or an acquisition, anything that we can do to buy growth or...?

We have given a guidance maybe even the last investor call, particularly which we are in wound care, which is basically suture business. We are confident to grow the business between the range of 15% to 20%, and coming to further acquisition, we just now completed a small transaction, which was a asset purchase for the IV cannula business.

We are going to finish even the plant approvals, whatever assets we have purchased, which will be done during the quarter, and that will also start adding to the growth of TI Medical. Overall, we are still bullish about this business and we are hopeful, we'll give 20% year-on-year growth in TI Medical going forward.

Can you just share the details of this acquisition or it is just under process, matlab?

No, it is already closed. It is a Medicura facility available at a Ambala, where we've done the asset purchase, and then we have to go through the approvals of getting the plant approval, which is a work in progress, and we are hiring our own team also, which all those activities will get completed by quarter one, and quarter two, we are expecting it to start the commercial production for that.

Any tentative revenue can you share of that company, or...?

Maybe we got at a attractive price. The company was not in operation.

We are going to put it in operation.

Okay. Thank you, sir.

Wish you all the best.

Thank you.

Thank you. I had a couple of follow-up questions.

One is, if you can give an update on the CDMO business in the manufacturing plant approvals, and when can we expect the revenue commencement? That was one.

Second is, when we think about FY27 as a whole, how much do you expect capex in the standalone business to be, and how much investments would go into the new ventures from standalone? Thank you.

Like we shared, particularly CDMO business, our plant is in final commissioning, and we are going to do the commercial production from our Naidupet facility starting next quarter. That's a part number one.

Part number two, capex in the core business will be around ₹300 crore to ₹350 crore range. Coming to the subsidiaries, based on the requirement, like we shared in the last investor meeting, some money will be required for, depending on the how operations are scaling up for the TICMPL, which is our EV business, and TI Medical also, we are going to invest money going forward.

All put together, we have a rough-cut estimate of around ₹300 crore going into the subsidiaries also.

Thank you.

Thank you. My first question is, if you could share the volumes for the quarter in the electric vehicle businesses for each of the products?

Yeah. Quarter four, the volumes were the big trucks, 60 65, 87.

Big trucks was, the MHCV business was 6 87 numbers.

687?

No, no, 87. 8-7,

87. 87.

Okay. Huh.

Yeah.

87. The small commercial vehicle business was 241.

The three-wheeler business was 1,176. Tractor, there was no billing.

All right. Thank you.

Second is, you mentioned this challenge on this body-in-white procurement, if you can just elaborate what was it and now we have resolved it in the sense that you've started manufacturing it in-house or your supply chain has stabilized?

Yes, there was this supplier which was with us from the beginning of the business, and we were struggling with this particular supplier, and is the reason we tried working out various solutions with him over a period of couple of years. Finally, we could very clearly identify that as we want to scale up our volumes immediately to 1,000 and then to 2,000 plus consistently, this definitely would be one of the bottlenecks.

Then we have taken over that particular facility of the supplier. It is very close to our existing unit of where we make our three-wheeler, and now we are running the facility, and is the reason and whatever we have seen in the month of April and up till now in the month of May, we have been able to ramp up to the levels that we had targeted for.

There are still some more teething issues to be resolved,

so

that's the reason we are very confident that by end of this quarter, we will be able to resolve, by and large, this specific issue of body-in-white.

Understood. All right.

Thank you. My next question, maybe Mukesh can answer this, is on the MFPD segment, right?

Now we've seen that the engineering business, last two quarters, we've seen volume growth coming back very strongly. MFPD, given that there'll be some overlap in the customer base, this still remains a little sluggish.

Any reasons why and what could be the outlook for next year?

Salil, your observation is right. MFPD is going a bit slow.

The reasons for that is one is the railways, where maybe we are not get the profitability in the tender business, and new product development with the private players is taking a bit of time, from our side, it is over, that's first. Second, one of the major customer in MFPD is Hyundai, which also had a muted growth.

You might have observed Hyundai as a OEM, maybe has not done so well in the last financial year. Now they started doing even the production in the western part of the country, where also we have put up a facility for them.

Hopefully, those issues will be behind us, and we'll have a better year for the MFPD in coming time.

Great. Right.

This Western India capacity is fully operational now, stabilized and running as normal or there is still kind of some phased expansion that is planned there?

Hyundai has just started, maybe last quarter only their western plant, and we are already servicing requirements from our facility in the Pune. Obviously, it'll go through a ramp-up phase, but all those issues, we feel in quarter one, ramp-up and issues and some teething issues whenever you start a plant will be getting settled in current quarter.

I see. Right.

This I'm assuming you're referring to the steel tubes expansion in Pune, right?

Your question was on MFPD,

I'm talking doorframes

for Hyundai.

Right. Understood.

How about the capacity for steel tubes? Is that now fully stable...?

Whatever facility expansion we had done, maybe let's say I think worked everything in our favor. CRSS plant in Nashik is ramping up, and hopefully by end of this financial year of middle of next financial year, it'll be 100% utilized.

We are in the thought process what we should do for further expanding it, but we'll take a call down the line six months. Our tube facility also in the Western Region has touched almost about 30% capacity utilization.

Hopefully, with same commentary, maybe by middle of next financial year, we are hopeful it will get 100% utilized.

Great. Thank you so much.

I'll come back in the queue.

Thank you for the opportunity again. I just had a follow-up on the EV business.

I believe in one of the earlier concalls, we had mentioned that we are planning a significant cost reduction across all the EV platforms. I just want to understand where are we in that journey in terms of cost reduction and localization, because I believe that is a important point for us that will enable us to scale up significantly.

Yes. Yes, Rushabh.

Cost reduction across all our four platform is a very important initiative and it's a continuous and ongoing process, although some of the recent geopolitical situation are the headwinds that we are facing. I can assure you, this is one of the topmost priority across all the four businesses, and various businesses have various levers to play in our journey to BOM cost reduction.

When it comes to localization, happy to report that one of the parameter of localization is a PM E-DRIVE scheme, which was introduced by Government of India, which incentivizes on the purchase of a electric truck only after a truck is certified to be containing some percentage of localization and component. Our Montra Electric Rhino was the first electric truck in the country to be certified under the PM E-DRIVE scheme, which happened in quarter four, and we could deliver vehicles under this particular scheme.

That answers, but directionally, we are fully committed to increase the localization content across all our platforms.

Secondly, on the competitive intensity in the HCV, I believe despite the market being so small, a lot of players have already entered. How do we intend to stand out in the HCV?

I believe we are still the market leader there. Matlab, how do you ensure that we still grow on that market share?

Yes, you're absolutely right, despite the market being very small, I will say across all the segments. In truck segment, for example, there are already 11 players.

Despite 11 players being there, we ended the year being a market leader with about 28% market share. Likewise, in small commercial vehicles also, there are already seven players.

Despite that, in quarter four, we had a market share of 27%. Intensity will be there.

What is our USP is the end-customer value proposition when he purchases the electric truck, which we feel the way we go about doing a solution selling in the market is what sets us apart from the rest of the competition. I'm not undermining the product reliability, etc., which is definitely there.

If I was to pin out, I think I'll single that out as our approach or as our USP vis-a-vis the competition.

Sir. Thank you.