Tube Investments of India Ltd Q2 FY26 Earnings Analysis

- Confident of achieving double-digit EBITDA growth in the near future, assuming certain cost efficiencies materialize. - Export growth outlook is uncertain due to macroeconomic challenges, especially in the US market, which currently contributes about 4% to total sales; exports are roughly 15% of revenue. Target to reach 25% exports by 2025 remains but is uncertain. - Standalone business growth: Engineering division expected to grow ~10%, metal formed division ~3-4%. - Mobility division showed positive growth in Q1, supported by back-to-school season and new product launches (e-bike, fitness segment). - E-truck volumes to pick up with planned product launches (e.g., 28 Ton tipper) and battery swapping infrastructure expected by year-end to support fleet adoption. - Expansion plans include increasing dealerships, product refreshes, and entry into new EV subsegments (e-rickshaw, L5N cargo). - Overall growth tempered by macro environment and market uncertainties, with internal strategies being actively developed to mitigate headwinds.

- Tube Investments of India is confident of achieving double-digit EBITDA growth in future periods, assuming cost efficiencies begin to take effect (Page 17). - Export growth is expected to be a growth driver, although uncertainties in the US market may pose headwinds; exports currently constitute around 15% of revenue, with a target of 25% in the future, but this remains uncertain due to macroeconomic conditions (Page 17). - Operational breakeven in the e-mobility segment, especially in the three-wheeler and heavy commercial vehicle (HCV) businesses, is targeted by the end of FY2026, though initial volumes have been below expectations (Page 7). - Revenue growth is supported by expansion in engineering and metal formed divisions with volume growth of ~10% and 3-4% respectively (Page 5). - Margin improvements are expected as steel price increases are fully passed on and through product cost efficiencies and battery pack localization anticipated towards end of FY2026 (Pages 10, 5).

- For FY2026, Tube Investments of India plans a capex of about Rs. 350 Crores for the standalone business. (Page 16) - The investments will be split between the engineering and metal formed divisions. (Page 16) - Capex includes commissioning a Hyundai plant in Pune (Western region) expected to start volumes from October. (Page 16) - Railway division: Sample approvals to be completed this year; volume ramp-up expected starting next year. (Page 16) - Strategic focus on three key growth businesses: TI Clean Mobility, TI Medical, and CDMO 3Xper Innoventure. (Page 7) - Further investments or funding towards newer areas will be based on partnerships that enable quicker paths to profitability, with no immediate funding needs for TICMPL (TI Clean Mobility). (Page 7)

- There is no specific mention of any new fundraising through debt or equity in the provided transcript. - Mukesh Ahuja mentioned that the capex planned for the standalone business is about Rs. 350 Crores, indicating internal funding for growth. - Vellayan Subbiah stated that TICMPL currently does not have cash needs and is fine, implying no immediate fundraising there. - The focus is on doubling down on three businesses (TI Clean Mobility, TI Medical, and CDMO 3Xper), with any future investments based on partnerships ensuring quicker profitability. - There is no explicit indication of plans for raising new funds via equity or debt in the near term discussed in this call.

- For the next immediate quarter, export orders are intact despite uncertainties in the US market. - The company targets double-digit EBITDA growth but acknowledges potential headwinds from exports, particularly due to protective market environments in the US and Europe. - Current exposure to the US market is about 4% of TI's business, with exports making up roughly 15% of total revenue. - FY2025 export targets were impacted by delays in product development for newer market categories and challenging global macroeconomic conditions. - The company is internally working on strategies to mitigate export headwinds and seeking to achieve a 2025 export target, though it remains uncertain given the macro environment.