TI India Charts Growth and EV Future

Ashwin Thakker

— 2 min read
  • Outlook for Sales: Targeting double-digit revenue growth for the standalone business, with significantly higher EV volumes expected in FY2026.
  • Outlook for Margins: Full recovery of steel price impacts anticipated in the current or next quarter to restore previous margin levels. EV division operational breakeven target for FY2026 is unlikely to be met.
  • Capex Plans: Rs. 350 Crores allocated for standalone business capital expenditure, mainly across Engineering and Metal Formed divisions.

Tube Investments of India (TI India) reported standalone Q1 FY2026 revenue of Rs. 2,007 Crores, signaling a robust start to the fiscal year. The recent earnings call offered a deep dive into the company’s forward-looking strategies, emphasizing core business resilience, strategic electric vehicle (EV) segment evolution, and prudent capital allocation. Management provided clear insights into expected margin recovery, volume expansion plans, and key investment areas, setting a clear trajectory for future performance.

Core Business Resiliency and Margin Recovery

TI India's traditional business segments demonstrate steady growth and a clear path to margin improvement. The Engineering division saw approximately 10% volume growth, while the Metal Formed Products business recorded 3-4% growth. Management addressed the impact of steel price fluctuations on margins, stating that the full recovery of these costs from customers is expected soon.

“Full recovery [of steel prices] will happen from the customers in coming quarter or next quarter,”

said Mukesh Ahuja, Managing Director. This indicates a positive outlook for restoring margins to historical levels. The mobility division, boosted by seasonal factors like school and college openings, also saw a favorable Q1, with long-term growth prospects enhanced by focus on e-bikes, fitness, and spare parts.

Strategic EV Expansion and Future Investments

The electric vehicle division remains a key focus for TI India, despite acknowledging that the previously stated target for operational breakeven in FY2026 is unlikely to be met due to lower-than-expected volumes. Jalaj Gupta, Managing Director for TICMPL, outlined several levers for volume increase, including a three-wheeler product refresh in Q2 and exploring new battery pack subsegments. The company plans to significantly expand its dealership network, aiming for around 125 by year-end, up from 91.

“Q2 will see the launch of the [three-wheeler] refresh model,”

Gupta noted, highlighting product innovation. For e-trucks, battery swapping solutions are targeted by year-end to cater to fleet operations. The company is doubling down on key growth areas, including TI Clean Mobility, TI Medical, and the CDMO 3Xper business, supported by a planned Rs. 350 Crores capex for standalone operations, primarily in engineering and metal formed divisions. While exports face some uncertainties due to global trade dynamics, the company remains confident in achieving double-digit growth for its standalone business.

TI India’s Q1 FY2026 earnings call underscores a pragmatic approach to growth, balancing stable core business performance with ambitious yet adaptable expansion in the electric vehicle sector. Despite revised EV breakeven timelines, the company's focus on product innovation, distribution enhancement, and disciplined capital allocation positions it for sustained long-term growth and market leadership across its diverse segments.

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