Tembo Global Industries Ltd Q1 FY27 Earnings Analysis

- Tembo Global Industries targets revenues of approximately Rs. 1,600 crores for FY’27, reflecting a 30% to 40% growth. - The company aims to scale up to Rs. 20,000 crores in top line by FY 2030. - The defense segment is expected to contribute around 5% to 10% of FY’27 revenue, ramping up from Q4 FY’27 with full utilization targeted from FY’28 onwards. - Engineering and EPC segments are anticipated to grow, supported by ongoing expansions and improved operational efficiencies. - Solar projects are planned to be commissioned by end of Q2 or early Q3 FY’27, beginning to contribute to revenue thereafter. - Capacity expansions, particularly at the Vasai plant, and defense manufacturing facilities will support future volume growth. - The company plans sustained order book replenishment with a current order book of Rs. 1,548 crores and a bidding pipeline over Rs. 2,200 crores.

- Tembo targets revenue growth to approximately Rs. 1,600 crores in FY’27, reflecting a 30%-40% increase. - For FY’30, the company aims a top line of Rs. 20,000 crores, indicating a very high CAGR. - PAT margins expected: 10%-12% at the group level for FY’27. - Defense segment anticipated to deliver high PAT margins of around 30%-35% at peak scale. - Defense business revenue expected to reach Rs. 300-400 crores in the first 12 months, with PAT around Rs. 170-180 crores. - Operating margins expected to improve through better project management and operational efficiencies. - No major CAPEX planned for FY’28; current expansions focus on solar, defense, and factory capacity. - Blended margins for the engineering and EPC segments around 10%-12% PAT. - Ongoing ramp-up of capacity expected over next 2-3 years to support growth and margin improvement.

- No additional CAPEX planned for FY’28 as of now (Page 13). - Current CAPEX focused on solar projects, defense manufacturing, and factory expansion (Page 5). - Solar project CAPEX around Rs. 600 crores; approximately Rs. 300 crores already spent (Page 9). - Debt addition of Rs. 300 to 350 crores projected for FY’27 to fund CAPEX in solar, defense, and working capital (Page 6). - Defense sector has already planned factory expansion and secured manufacturing licenses; production ramp-up expected in FY’27 and beyond (Pages 3, 4, 14). - Factory capacity expansion from 18,000 MTA to 100,000 MTA started in January 2026, with a ramp-up over 2 to 3 years (Page 7). Overall, current and near-term capital investments concentrate on solar and defense verticals along with capacity expansion to support growth.

- The company plans an addition of debt around Rs. 300 to Rs. 350 crores by FY’27. - This debt addition is mainly to fund CAPEX for solar, defense projects, and working capital requirements. - As of now, there are no plans for new CAPEX beyond the ongoing solar, defense, and factory expansion projects. - No specific mention of new equity fundraising was made during the call.

- Current order book stands at approximately Rs. 1,548 crores, primarily from the engineering and EPC segments. - This order book is supported by a strong bidding pipeline exceeding Rs. 2,200 crores, providing clear medium-term revenue visibility. - Defense segment contributes around 5% to 10% of the projected revenue for FY’27, with defense orders expected to start contributing from the 4th quarter of FY’27. - Order inflows from the Middle East, particularly from the MASAH JV, are currently slow but expected to pick up in the second half or third quarter of the year. - The company is continuously receiving orders daily, with factories running on two shifts to meet demand.