TIINDIA - Tube Investments

📊 NSE: TIINDIA 🏢 Steel - Large 📅 Last Updated: 12/14/2025 14:35

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 15.2% YoY to INR 19,464.7 Cr in FY25. Engineering segment revenue reached INR 1,382 Cr in Q2 FY26 (up 4.5% YoY), while Metal Formed Products stood at INR 408 Cr. CG Power, the largest subsidiary, drove significant growth, while the EV business is scaling up with new launches of e-SCVs and e-tractors in Q4 FY25.

Geographic Revenue Split

Not explicitly disclosed in percentages, but the company is actively pursuing geographic expansions to mitigate domestic cyclicality, particularly in the engineering and metal formed products divisions which serve global auto OEMs.

Profitability Margins

Consolidated Operating Margins declined by 160 bps to 10.2% in FY25 (from 11.8% in FY24) due to operational losses in the nascent EV business. PAT margin stood at 5.4% in FY25 compared to 10.3% in FY24, impacted by the absence of previous year's fair value gains.

EBITDA Margin

Consolidated OPBDIT/OI margin was 10.5% in FY25, down from 12.1% in FY24. This 160 bps compression is primarily attributed to higher operating costs associated with the expansion of the EV vertical and gestational losses in CDMO and medical consumables.

Capital Expenditure

Planned cumulative capex of INR 3,000-3,500 Cr over the medium term. This includes an annual outlay of INR 1,200-1,500 Cr for capacity enhancement in existing businesses and new ventures like EV, medical consumables, and the CDMO facility at Naidupet (INR 99 Cr invested in FY25).

Credit Rating & Borrowing

Long-term rating reaffirmed at [ICRA]AA+ (Stable) and Short-term rating at [ICRA]A1+. Borrowing costs remain low as the company has been net debt negative since FY23, with total debt/OPBDIT at a healthy 0.3x in FY25.

⚙️ Operational Drivers

Raw Materials

Steel (for CDW tubes and metal forming), Copper and Aluminum (for CG Power systems), and active pharmaceutical ingredients (for CDMO). Steel and power-related metals constitute the bulk of the raw material cost base.

Import Sources

Not specifically disclosed, but procurement is managed through a mix of domestic sourcing for steel and global sourcing for specialized electronic components and pharmaceutical inputs.

Capacity Expansion

Setting up a greenfield CDMO facility in Naidupet, Andhra Pradesh, and a medical consumables facility in Uttar Pradesh. Additionally, subsidiary CG Power is establishing an OSAT (Semiconductor) facility with a planned investment of INR 2,683 Cr over 2-3 years.

Raw Material Costs

Raw material costs are a significant portion of the operating income; however, the company uses a pass-through mechanism for input cost changes in the engineering division, though with a time lag that can temporarily squeeze margins.

Manufacturing Efficiency

Standalone ROIC was 44% in Q2 FY26. The company focuses on an assembly-led model for cycles and metal forming to reduce fixed asset intensity and improve capital efficiency.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be driven by a multi-pronged strategy: 1) Scaling the EV business (TICMPL) through e-SCV and e-tractor launches; 2) Diversifying into high-margin CDMO and medical consumables; 3) Entering the semiconductor space via the CG Power OSAT facility; and 4) Maintaining market leadership in core engineering products like CDW tubes.

Products & Services

Cold Drawn Welded (CDW) tubes, automotive chains, fine blanking products, retail cycles, electric small commercial vehicles (e-SCVs), electric tractors, surgical sutures, gearboxes, and power transformers.

Brand Portfolio

BSA (motorcycles/cycles), Montra (EVs), Shanthi Gears, CG Power, 3xper Innoventure.

New Products/Services

Launched e-SCVs and e-tractors in Q4 FY25. Entering the semiconductor OSAT market and expanding the CDMO portfolio to include Active Pharmaceutical Ingredients (APIs).

Market Expansion

Targeting the medical devices market through TI Medical's new facility in Uttar Pradesh and the domestic motorcycle market through the BSA brand licensing JV (TICL Brands).

Market Share & Ranking

Market leader in CDW tubes in India; one of the largest organized players in retail cycles with >20% market share; major supplier of automotive chains.

Strategic Alliances

Joint Venture with Premji Invest (PI Opportunity Fund) for medical devices; JV for BSA brand licensing (TICL Brands); and partnership with Mr. N Govindarajan for the 3xper CDMO business.

🌍 External Factors

Industry Trends

The industry is shifting toward EVs and sustainable materials. TIINDIA is positioning itself by pivoting from a pure-play auto component maker to a diversified industrial conglomerate with interests in clean mobility and semiconductors.

Competitive Landscape

Faces intense competition in the retail cycle segment and from global players in the power systems (CG Power) and upcoming semiconductor sectors.

Competitive Moat

Moat is built on market leadership in niche engineering products (CDW tubes) and the strong brand equity of the Murugappa Group. These are sustainable due to high entry barriers in precision engineering and established OEM relationships.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and automotive sales cycles. A slowdown in the 2W or PV markets directly impacts the engineering division's utilization.

Consumer Behavior

Shift toward ride-sharing and environmental awareness is driving the company's aggressive push into the EV ecosystem (e-tractors and e-SCVs).

Geopolitical Risks

Global economic headwinds may impact high-value manufacturing exports, though India's positioning in electronics and semiconductors provides a hedge.

⚖️ Regulatory & Governance

Industry Regulations

Beneficiary of Government of India subsidies for the OSAT semiconductor project. Operations are subject to auto-emission norms and medical manufacturing standards (ISO/CDSCO).

Environmental Compliance

Focus on sustainable materials and waste-to-fuel technology (X2 Fuels investment) to align with increasing environmental regulations.

Taxation Policy Impact

Not disclosed as a specific percentage, but subject to standard Indian corporate tax rates.

Legal Contingencies

Notice of transfer of unclaimed dividends and equity shares to IEPF as per statutory requirements; no major pending litigation values disclosed.

⚠️ Risk Analysis

Key Uncertainties

Gestation period for the semiconductor and EV businesses could be longer than expected, leading to sustained margin pressure (potential 1-2% impact on consolidated margins).