Thank you, Swapnil. On behalf of IIFL Capital, I welcome you all to the 1Q FY '27 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 all their divisional heads. I will now hand over the call to the management for opening remarks, post which we will have Q&A.

Good morning, everyone. Just to give a commentary on this quarter results, the Board of Directors of Tube Investments of India Limited met on 14th August 2026 and approved the financial results for the quarter ended 30th June 2026.

Standalone results for the quarter: revenue in 1— Quarter 1 was at ₹2,366 crore against ₹2,007 crores in the same previous year. PBT was at ₹213 crore against ₹2,000— ₹222 crores in the same period previous year.

ROIC annualized stood at 41% for the quarter ended 30th June 2026 compared with 39% in the previous year same period. Free cash flow for the quarter was ₹174 crore.

Now I give the segmental review. The Engineering revenue for the quarter was ₹1,566 crores compared with ₹1,298 crores in the corresponding quarter of the previous year.

Profit before interest and tax for the quarter was ₹153 crore, which is same as the corresponding quarter of the previous year. Metal Formed Products: revenue for the quarter was ₹408 crore compared with ₹366 crore in the corresponding quarter for the previous year.

Profit before interest and tax for the quarter was ₹28 crore as against ₹37 crores in the corresponding quarter of the previous year. Mobility revenue for the quarter was ₹250 crore compared with ₹198 crore in the corresponding quarter of the previous year.

Profit before interest and tax for the quarter was ₹9 crore against ₹7 crore in the corresponding quarter for the previous year. For Others, revenue for the quarter was ₹256 crore compared with ₹236 crore in the corresponding quarter of the previous year.

Profit before interest and tax for the quarter was ₹21 crore against ₹17 crore in the corresponding quarter of the previous year. TII consolidated revenue for the quarter was ₹6,215 crore against ₹5,309 crore in the corresponding quarter of the previous year.

The profit before share of profit for JVs, exceptional items, and tax for the quarter was ₹461 crore against ₹449 crore in the corresponding quarter of the previous year. CG Power and Industrial Solutions, a subsidiary in which company holds 56.29% stake, registered a consolidated revenue of ₹3,281 crore during the quarter against ₹2,878 crore in the corresponding quarter of the previous year.

Profit before tax for the quarter was ₹423 against ₹364 crore in the corresponding quarter of the previous year. Shanthi Gears Limited, a subsidiary company in the gears business in which company holds 70.46% stake, registered a revenue of ₹115 crore during the quarter against ₹135 crore in the corresponding quarter of the previous year.

Profit before tax for the quarter was ₹14 crore against ₹31 crore in the corresponding quarter of the previous year. Thank you, and we are happy to take questions.

Hi. I have two, three questions.

One is, if I look at the standalone performance, we have seen some pressure on margins, because of which the EBIT growth in the Engineering segment and the Metal Formed segment was relatively muted. What I wanted to check is that in the last couple of quarters, we have seen a lot of inflation, all OEMs and suppliers are talking about inflation.

In that context, is there any price hikes that have yet to come from your customers because of which we have seen a compression in margins, or is the profitability in the quarter reflecting the underlying business dynamics?

Thank you, Joseph, for your question. Joseph, as you're already aware of, there was a lot of commodity steel price increases happened in the Quarter 4 and Quarter 1, which has resulted into the lower margins.

Basically you are aware that TI maybe gets those price increases with a lag of sometimes two or three quarters. We are confident on the steel price increase particularly, we'll be able to recover fully, and you'll see the margin neutralization will happen in the coming quarters.

Got sir. Would it be possible to quantify the extent of under-recovery in the quarter so that we can estimate what sustainable margin each of the segments is?

Joseph, maybe I would not like to give particular number, maybe like we have given a guidance we'll be able to grow EBIT margin in the double digit, and post the price recovery, we are confident the double-digit margin improvement will keep happening in the future also. Got sir.

Understood. Thank you.

Hi. Just my question is on the TI Medical part.

As you mentioned in the annual report that other plant is running at capacity, and we did one acquisition in March '26. Just want to understand how do we see this business from a three to five-year perspective.

We did around ₹200 crore revenue. Can it be a 3 to 5x business over the next 3 to 5 years?

Yeah. Thank you, Devesh, for the question.

Just to give a overall view of that TI Medical business: there is a core business, which is basically a surgical business which we are doing it. In the Quarter 1, we had a growth of almost close to 20% in that particular business.

Second, maybe to grow business, maybe we have done a very small acquisition in the IV cannula, which is basically maybe infusion therapy, this IV cannulas are used. We are expecting that business to start giving us revenue from this quarter onwards, maybe basically August or September, this plant will start and will start booking the revenue for that.

Overall basis, for TI Medical, as we said in the previous calls, we are confident to do 20% revenue growth year-on-year, along with the profitability. However, this Medicura business what we have just acquired may take some time maybe to do the customer acquisition, as well as on the margin side, but the core business, we are confident the revenue growth and profitability will continue in double digits.

Understood. Sir, on this CDMO 3x part, if you can also give some color, because I understand we are setting up 200 kL reactor capacity, what is the trajectory there?

Govind is there in the call? Govind ji, you are there in the call?

I'm here, Mukesh ji. Yeah.

The 200 kL intermediate capacity's commissioning has already happened. The validation batches are going on.

The clean room is expected to get commissioned in the next 30 to 40 days. Meanwhile, while that commercial facility is getting commissioned, the semi-commercial facility, the validation batches will be supplied to the customer for triggering their AS filing, which can trigger the inspection to the site should happen in the next 40 to— in terms of the product will move to the customer.

After that, they have to take their [PV?] batches, and then they will wait for the stability and file.

That will trigger the inspection. We expect the inspection to happen during the next financial year.

We are on track in terms of getting to achieve the numbers whatever we have projected, we are on track in terms of achieving that as of now.

Understood. With this business, after the inspection, exponentially it should be on a growth trajectory?

Yes, sir. Currently, we are already supplying the products to certain customer.

Example, our semi-commercial plant, we are already supplying commercial quantities for a OTC product which has been launched in Europe, and the customer is likely to take the product for the global requirement. We have also supplied a key intermediate to one of the customers for their filing as well.

Those work are going on. At any given time, we have around 15 customers who are working with us both for FTA, FFPS, as well as certain projects which would be supplied from the semi-commercial plant and manufactured.

Understood. Sir, we haven't mentioned anything on the electronics piece in our annual report, and so just want to understand what's happening on the lenses side.

Basically, this your question is on TEOS?

Right, right.

Maybe that business, maybe like we shared the previous call, we are yet to make the inroads in that particularly, but we are continuing that business to get inroads into customer approvals for the export business, because in the domestic market, basically this lens modules and the camera modules manufacturing is yet to start. Bottom line is we yet to make inroads on that business.

Understood. That's it from my side.

Thanks. Hi.

My first question is, follow-up to what Joseph was asking on this price lag from of steel price increases. What you in your answer just to clarify means that you will also recover what you lost in Q1, right?

It's not just that there is a lag on just passing on the cost hike, you also recover cumulatively what has been the under-recovery. Is that a fair

expectation? That assumption is right.

For steel prices particularly, including Q1, we'll be able to recover fully.

All right. My second question is again on the standalone business.

Now, the MFP, after a long time, we have seen almost about an 11.5% growth in revenues. If you can tell us what has changed here?

Last couple of times, you mentioned railways was a drag. If you can give an indication of what has changed on the MFP segment this quarter?

There are couple of reasons there. Like you mentioned that railway is a drag, there's no doubt on that.

While automobile industry has done pretty well, particularly Hyundai, where one of our business unit is purely depends on them, and maybe let's say has not done well. That is maybe also for this particular quarter, there was a drag on that.

Rest of the two units actually we are maybe like you are aware, we have declared to do a greenfield plant launch in the Western region that is running delayed by 6 months. Capacity maybe in terms of expansion, whatever growth was there, we are having a lag of 6 months to catch up on that.

This all summation put together, there was a pressure on the revenue in the MFPD division.

Okay. No, I was actually saying that this seems to be better than what you done in the last few quarters.

If this was volume-led or something else?

Volume-led only, because price recovery is yet to take place in this segment. Volume-led in the last particularly two businesses other than railways and the Hyundai business.

Okay. Understood.

Thanks for clarifying. The next two questions I have on our e-mobility business.

One is our negative EBIT in the segment has come off by almost about, I think, ₹40-50 crores in this quarter. Which particular product or segment has this happened?

What are the broader drivers of loss reduction?

Yeah. Thanks, Salil.

This is Jalaj. Quarter—

Yeah.

Quarter 1 has been a very good quarter for us. We have recorded our highest-ever turnover of close to ₹240 crore.

I will say that out of all the four businesses, we are seeing traction in all four of them. When you look at the the truck business, which is the HCV business, the momentum is continued from the Quarter 4.

When it comes to the small commercial vehicle business, we have recorded highest-ever volumes in any quarter in the Quarter 1. Even including the three-wheeler business, if you recall, in Quarter 4, we had reported there were some challenges on the one of the supply side, which impacted our production volume.

All those challenges are behind us now, and Quarter 1 recorded almost a 64% kind of a improvement over Quarter 4 volumes. The overall volumes being good, and your observation regarding the margins is also correct.

I will say all the businesses are now seeing traction in terms of their volumes, and because the volumes are increasing, although, yes, there is a tail— there is a headwind of, the inflationary pressure or the commodity pressure, including the cell prices, but we've been able to, post a decent, I'll say, performance, if not a very good performance.

All right, thanks. Just to be sure, there's nothing in one-off no benefit this quarter, this is regular routine volume growth that is driving the margins?

Yes.

Yes.

Great. Lastly, if you can share volumes for each of these products for the quarter?

Yeah. The billing volumes, the big trucks was 86 numbers, the three-wheeler business was 1,924, the small commercial vehicle was 347, and tractor was 22 numbers.

Great, Jalaj. Thank you so much.

Hi. Sir, my first question is on the EV business unit.

It's good to see finally some traction there. Given what we are seeing at this point, is it fair to assume that we're behind the peak quarterly losses for this particular segment?

Can you just repeat, Prithvi? Can you just please repeat your question again?

Are we behind the peak losses for the EV business at this point of time? Do you also have any timeline for break-even?

Yeah. Prithvi, directionally, yes.

Directionally, as we see our volumes increasing quarter-on-quarter, your first statement regarding us be behind or us beyond the peak losses for a quarter is a correct one. Directionally, what you're saying is correct.

That's what the endeavor would be. Your second question was, can you just repeat the second question again?

Prithvi,

Yeah.

On the break-even timeline for the EV business.

Prithvi, this will vary from business to business. There are some business which will break-even early, and there are some businesses which will go into the break-even later.

We're expecting one of our business to break-even this year, and maybe two of them to break-even next financial year.

That's clear. On the Engineering side, is it possible to share the volume growth during the quarter?

Volume grew about 17%.

Okay. Got it.

Thanks. That's all from my side.

Yes, hi. I had a couple of questions.

One is on the EV side, the volumes that you have given, especially on the three-wheeler side, where we track volumes of registrations on the Vahan website, and what I noticed is that the wholesale volume that you have given is somewhat higher than the retail registrations that we are seeing. Is it that things have picked up substantially over the last one or two months, and as a result, in anticipation, you have wholesaled more, and there's something that we will see in the registrations later in the coming quarter or so?

Yeah. Joseph, thanks for the question.

See, there is always a lag between the billing and the Vahan, but over a period of time, the two tend to match. Since you specifically mentioned three-wheeler business, let's say last financial year, our billing was about 6,700 and our Vahan registration was about 6,500, right?

Specifically to Quarter 1, if you recall, we reported that there was some production link challenge in Quarter 1— consequently, our billing in Quarter 4 was only 1,200 numbers, as compared to Quarter 1 was 1,924 numbers. In a growing business, right, especially let's say in Q1, our opening pendency for Vahan would always be lesser than the closing pendency for Vahan.

Maybe that's the other part of it. Over a period of 3 to 4 months, max 6 months, the numbers always tally between the Vahan and the primary or the billing numbers which we declare.

Usually, there is a time lag of at least 30 to 45 days between billing and Vahan.

Understood, sir. That's very clear.

The second question that I had was when we think about FY '27, or rather, when we looked at FY '26, there were some investments that has gone out from the standalone entity into some of these new ventures, subsidiaries, etc. When we think about FY '27, what is the amount that you have allocated in terms of cash flow from the standalone entity into some of these subsidiaries, if that has been budgeted for already?

Joseph, like we shared in the previous calls also, we have already infused ₹250 crore in the last quarter, maybe basically Q4 of the last financial year, and we anticipate maybe in Q3, we will infuse another ₹250 crores. We have given a guidance of total put together about ₹750 crore infusion will happen over a period of time.

Second tranche of that will happen in Q3.

Understood, sir. Thank you.

That's all I had.

Morning, sir. Can you hear me?

Yeah. Good morning, Anupam.

Yeah. A few questions.

Firstly, on the core business, both Engineering and Metal Formed, you said specifically that steel you will be able to recover, but let's say other costs which you had mentioned in the last call that there are other costs which are higher because of West Asia crisis, how are you able to manage that and when do you think that will normalize for you?

Anupam, this quantum of increase that is happening after maybe first time. We have already taken up with all our customers.

As of now, we are in the verge of discussions with all the OEMs to recover, which is non-steel inflation, which is basically fuel, freight, extra. Maybe we will let you know maybe another quarter down the line time how those conversations are going on.

We are hopeful majority of that we'll be able to recover as on this moment.

Basically you should, both for Engineering and Metal Formed, you should revert to your older margin levels which you were seeing in FY '26?

Yes. Yes, please.

Okay. My second question is basically on the Cycles business.

We have seen a very strong growth in this quarter. In fact, it has been happening for the last few quarters that you have been recovering, and your margins also have recovered quite a bit here.

If you can just give a sense of what's driving the improvement and how sustainable that is?

Anupam, you are aware of that basically Quarter 1 of every financial year, it is very good for the Cycles business particularly because schools will be opening it, colleges will be opening it, and which maybe I'm happy to state maybe we have encashed those growths fully. Rather, we have improved our even share of business.

That's what is resulted into a margin expansion in that particular business. We are hopeful like we shared, maybe at least another 2 basis point in the Cycles business will be able to improve margin for the overall year, current financial year.

Sorry. Sir, when you said 2 basis point, basically you're saying 5-ish percentage points for the Cycles business, that is what the target margins are?

As of now, yes, but we are further working it how to improve beyond that. Okay.

Understood, sir. Sir, one question on Orange EV which you have mentioned in your notes.

That is part of which segment in the reported results? What do you plan for that business?

Anupam, right now, it is part of Others segment.

Okay. What is—

It's very small right now. It's part of— Sorry?

Okay.

What is the plan for the next few years? Do you plan to scale it up or how do you look at that business?

Anupam, this is a very small business which we have acquired. Basically, it's a step towards additive manufacturing, which is metal injection moulding.

This is a small start-up which we have acquired to develop the capability, and going forward, we'll be scaling it up. First one or two quarters, we would like to study what market and what segment we want to play, and maybe I think two quarters down the line, we'll give you guidance on this business also.

Sure, sir. Just one last question: CDMO also is part of Others segment or is it part of Medical?

It is part of Others only.

Okay. Fine.

Thank you.

Thanks. My question again is on the EV segment, right?

This is specifically related to Jayem. This, I understand, is largely services business, but yet at EBIT level, we have a negative number in this for the whole of FY '26, although revenue growth has been pretty solid at 30-35%.

What's happening here, what's the outlook, if you can give some more details?

Yeah. There has been some headwinds which Jayem has been facing when it comes to design and development, which has been the core business for Jayem.

However, the outlook looks good because Jayem has now diversified into battery manufacturing, which has a good potential going forward. In this financial year, they have a battery assembly line setup.

Going forward, apart from the core business of design and development and fast prototyping, validation and testing— these two were the core business for Jayem— we will see our third revenue generation stream of battery business also coming in. The outlook for Jayem for top line as well as the bottom line looks positive.

These batteries are in the group's consumption or this is going to be commercial factory?

Yeah. To start with, because they're in the process of ramping up, they would be for in-house consumption primarily for the small commercial vehicle business and three-wheeler business.

However, over a period of time, as they expand in capacity, etc., the Jayem would be selling it outside to any other EV player as well.

Okay. Thanks.

Secondly, maybe, Mukesh, you can answer this: for the group as a whole, if you leave out CG Power, what are your capex commitments currently and by what the timeline in terms of those coming on stream?

One second, Salil. CG Power.

Yeah.

I can just tell you this: in TII, we are planning around ₹350 crores of plans for the current financial year, and Shanthi Gear will be around ₹100 crores. If you take group as a whole, if you see, something like ₹600 to ₹700 crores.

Since question was particularly in CG Power,

I guess. No, no, I said if you leave out CG Power, other than CG Power, what are the capex numbers?

Leaving CG Power. Yes.

Okay. Okay.

Right.

These numbers, are these part of specific projects, if you can just give some light on where you are spending money and by when those individual projects get completed?

In core business, basically the money will be going towards the Engineering division and an MFPD divisions, and rest maybe money will be going in basically TI Medical and 3x CDMO business.

Thank you.

No, I'm done. Thanks.

Thank you, Salil.

Hi. Just wanted to get some clarity on the external investors that we have in TI Clean Mobility.

When is the conversion likely to happen, and could you give me a sense of what's the broad stake they're likely to end up at post the conversion? That's it.

Thank you.

Hi, this is Meyyappan here. See, actually, we have three investors over there, external investors are there, and they are invested in the CCPS.

The conversion happens only at the time of IPO. IPO, we have a time and there is no fixed timeline for this.

Once the market is there and once they start selling more and revenue start coming up and once the profitability comes, we will go to the market for IPO. At that point, it will get converted.

Another question which you asked, what will be the stake at the point in time? That will be decided based upon the market, that is at that point in time, whatever the valuation which we are going to get, at that point in time, it will get decided.

Okay. Thank you so much.

Yeah. Thank you.

Thanks. Just as a follow-up question on the Engineering segment, you had a very strong growth of 17% volumes.

How is the demand environment now? Are you seeing similar momentum to continue?

Also, could you explain how exports are shaping up?

It's a good question. How the markets will turn out, I think it is beyond anybody imagination, but at least for next one or two quarter, we feel it is going to be bullish.

Exports also has done pretty well in particularly Quarter 1, and where also good double-digit growth has happened in the exports also. We expect that momentum to continue, reasons other than beyond our control, like geopolitical situation can maybe put a hurdle, otherwise customer relationship and the new product development, whatever we've done, all things are intact.

Currently, how much is exports as a percentage of revenue?

At a TII level, it is about 14%.

14%. On the domestic demand, which are the segments that are contributing to this strong demand?

I think across, maybe Quarter 1 was a very, very bullish quarter. Across the segments, across the vehicle categories, I think there was a strong momentum.

Maybe only I think Hyundai was not able to contribute, which I'm pretty sure they are working on new model developments, that also will. Over across the good segments and geography, demand was pretty good.

Thank you. That's all from my side.

Am I audible right now?

Thank you, sir. Sir, I've got a couple of questions with respect to TI Clean Mobility.

Recently, we have exported our first consignment of three-wheeler autos to Nepal and a few other African countries. Could you please give me some color on that?

How was the volume? What was our first consignment like for the volume?

Yeah. Thanks, Harshvardhan.

Harshvardhan, right now, what the markets we are exploring is A, India-like market, which is Nepal and Sri Lanka, and B, some of the African countries like Tanzania and Ethiopia. However, Tanzania and Ethiopia and the African market are more at a exploratory stage right now.

Where we have truly made a breakthrough is Nepal market, where you would have picked up from the news as well that we have exported our consignment in Nepal. About 100-plus is the unit which have been shipped or in the process of getting shipped to Nepal, and initial product feedback is very positive.

We are very bullish on Nepal as a country going forward. This is what we can share at this point of time.

Okay. Thank you.

My second question: as just got highlighted a few moments back about the rising cell demand globally, and there have been bottlenecks for acquiring the same, sir, how are we positioned for that?

Yes, it's a genuine challenge which we are grappling with, and has been one of the challenge for us in Quarter 1. Going forward, at least for two, three quarters, we see this as a challenge because there used to be some tax exemption which some of the cell manufacturers used to enjoy from the Chinese government, which we see that over a period of next two, three quarters will get lifted.

We were anticipating the cell prices to go down. However, in light of what's happening across the world, and also growing demand for BESS business, that is Battery Energy Storage System, we are seeing some challenges on the cell prices.

However, in our case, what we are relying is in terms of pre-booking some of the orders with long lead time items, and locking the prices with the cell and the battery manufacturers. However, these are all the mitigating steps that we're doing, but directionally, the cell prices are not looking like to cool down, at least in this quarter or even in Quarter 3 as well.

Okay. Sir, regarding our heavy commercial vehicle portfolio, what is our order book visibility for tippers?

Tippers, we have we introduced in Quarter 1 in the market. What we offer is a is a 28-ton tipper.

The market seems to be shifting more towards 35-ton and higher category of tipper, which we are contemplating, developing for our product portfolio. As far as the existing tippers are concerned, we have we have sold about 20, 25 numbers of tippers, and the initial feedback is is positive.

Also, keeping in view the order book which we have for some of the other products, where we have a confirmed order book, and given the kind of challenges which we had on the supply chain, including that of cell, right now, the focus is more to service that particular order book, which is for 4x2 tractor trailer, while continuing to seed in more volumes of our tipper, which will lead us which will, hopefully give us bulk deals, and then probably, we'll start producing and selling them as well.

Okay. Another question on HCV side: sir, it was previously indicated that we have some good inquiries coming in from ports.

Sir, any new deployments over there?

Welspun at Anjar port in Gujarat and Welspun, there are about 22 trucks which are deployed there, which carry Welspun material to the port and from port back to Welspun. That is one one big number that I'm talking about.

There have been other single-digit truck deployment, which has happened at Vizag Port, and I think even in Chennai Port as well. There are two, three others which we are talking about in terms of the port.

One big deal, which you would have picked up from the news as well, which is for the Wonder Cement as well as for the Wonder Cement. There, we are touching two ports, Tuna Port and Dahej as well.

Those are the other ones which are touching the ports and bringing in coal from those particular port.

Okay. One more last question: we had previously indicated that we'll be introducing L3 autos in the market.

Sir, any update on that?

We have done that, but it's a partial kind of a seeding and testing. We have introduced L3 products in Quarter 1, but in the select markets of UP and Bihar.

We are testing those particular vehicles in these market, and basis the feedback that we get from these markets, we will take a call forward on L3 as a product.

Okay. How is the NCR commercial vehicle modernization drive gaining traction, sir?

By law, you mean to say with respect to the EV policy which NCR has declared?

Yes,

yes, yes. Yes.

We are increasingly seeing more and more traction when it comes to NCR market, not only for us, for the entire industry of EV. In let's say couple of months from now, once this becomes mandatory, we will see huge traction gaining into NCR.

We are also ramping up our ability in NCR to service that demand, be it in terms of dealer appointment or their secondary footprints across the NCR.

Okay. Thank you, sir.

Thank you so much.

Thank you.