Tube Investments of India Ltd Q3 FY26 Earnings Analysis

- Core standalone business expected to grow revenues by ~10% with PBT growth of 12-15% in FY2026. - Capex of Rs. 300-400 Crores planned for base business expansion. - Additional Rs. 300-400 Crores capex targeted for growth initiatives in TI Medical, 3xper, and related ventures. - Rs. 200-300 Crores earmarked for potential M&A or new business lines to boost growth. - TI Medical aims for a 25% CAGR growth, adding new verticals beyond sutures. - EV segment: 50%+ market share in electric trucks pan-India with product launches including swap technology and new variants to drive volume growth. - Three-wheeler EV volumes expected to pick up from Q4 after product improvements. - Engineering division volume growth about 10% YoY; capacity utilization at 80-85%, with new plants increasing capacity for 1-2 years. - Overall long-term thesis intact, targeting sustained double-digit growth over 5-10 years.

- Standalone business revenue growth expected around 10%; PBT growth projected between 12%-15%. - TI Medical targeted for 25% CAGR growth including new vertical additions. - Engineering division volume growth approx. 10% year-on-year. - Electric vehicle (EV) business confident with 50%+ market share in pan-India electric trucks; volumes growing steadily. - Overall consolidated profit before tax increased by about 7.7% compared to the corresponding quarter last year. - Base business capex planned at Rs. 300-400 Crores; TI Medical/3xper and others an additional Rs. 300-400 Crores; potential Rs. 200-300 Crores for M&A and new lines. - Long-term outlook remains positive with a fundamental thesis of strong growth and profitability. - Management maintains confidence in maintaining double-digit growth over the medium to long term.

- **Next Year Capex Plans:** - Rs. 300-400 Crores for standalone (base) business expansion. - Rs. 300-400 Crores planned for growth areas including TI Medical (Greenfield) and 3xper Innoventure. - Additional Rs. 200-300 Crores may be allocated for M&A activities in related new lines of business. - Investment in TI Clean Mobility to be decided later in the year. - **3xper Innoventure:** - Total planned investment of Rs. 300 Crores. - Rs. 200 Crores invested till last year. - Rs. 50 Crores invested this year (Q1 and Q2). - Remaining Rs. 50 Crores to be deployed this year. - **TI Medical:** - Investments focused on new medical lines beyond sutures. - Growth driven by operational and capital investments. - **Strategic Focus:** - Capital deployment aligned with long-term growth and profitability targets. - Emphasis on both organic expansion and inorganic growth through M&A.

- No explicit mention of new fundraising through either debt or equity in the transcript. - Debt has been completely repaid as mentioned by Vellayan Subbiah. - Capital allocation plans mainly involve internal funding for capex and operational working capital. - Planned investments include: - Rs. 300-400 Crores capex for the standalone/base business. - Rs. 300-400 Crores for growth in TI Medical and 3xper businesses. - Up to Rs. 200-300 Crores possibly allocated for M&A and new lines of business. - Any inorganic growth or new line of business requiring capital may lead to more capital being deployed. - No direct mention of raising fresh debt or equity at this time.

- Engineering division is running at 80% to 85% capacity utilization, with new plants at Nasik and Phaltan starting operations recently, providing capacity for the next 1-2 years. - Railway business has a strong order book with expected revenue growth starting Q4 FY2026, though there is a one-quarter delay due to other suppliers’ supply chain readiness; TI’s readiness is confirmed. - TI Clean Mobility's electric vehicle segment has existing orders with 300+ trucks already running, and new product launches planned, indicating a healthy order pipeline. - Medical devices and 3xper have ongoing investments with planned capex and expected growth, indicating committed orderbook and work-in-progress. - No specific quantitative orderbook figures disclosed, but operational and strategic readiness points to strong pending orders and order inflow across key segments.