TEMBO - Tembo Global
📢 Recent Corporate Announcements
Tembo Global Industries Limited has been fined ₹1,67,560 by the National Stock Exchange (NSE) for failing to comply with SEBI Listing Regulations. The violation pertains to Regulation 17(1A), as the company did not pass a special resolution for the continuation of Mr. Firdose Vandrevala's directorship after he reached 75 years of age. The company received the order on February 27, 2026, and attributes the lapse to an inadvertent oversight. Management stated there is no material impact on financial or operational activities beyond the monetary penalty.
- NSE imposed a monetary penalty of ₹1,67,560 (including GST) for regulatory non-compliance.
- The violation involved Regulation 17(1A) concerning the directorship of Mr. Firdose Vandrevala upon attaining 75 years.
- The company failed to pass the requisite special resolution for his continuation as a director.
- Management stated the non-compliance was an inadvertent oversight and has strengthened internal controls.
Tembo Global Industries has called an Extraordinary General Meeting (EGM) on March 24, 2026, to seek shareholder approval for several major financial resolutions. The company proposes to significantly increase its investment and loan limits under Section 186 to ₹3,500 Crores. Additionally, it plans to raise ₹50 Crores through Non-Convertible Debentures (NCDs) and seeks a ₹500 Crore limit for loans to subsidiaries. These moves indicate a massive planned expansion or capital deployment strategy across its group entities.
- Proposed increase in investment, loan, and guarantee limits to ₹3,500 Crores under Section 186.
- Approval sought for loans and guarantees to subsidiaries and associates up to an aggregate of ₹500 Crores.
- Plan to raise ₹50 Crores via private placement of secured or unsecured Non-Convertible Debentures (NCDs).
- Seeking approval for material related party transactions with 8 group entities including Tembo Classic Engineering and Tembo Global Infra.
- EGM scheduled for March 24, 2026, to be conducted via Video Conferencing.
Tembo Global Industries Limited has reported an investigation by the Maharashtra Goods and Services Tax (MGST) Department under Section 67 of the MGST Act, 2017. The department raised discrepancies regarding GST provisions under sections 9(4), 16(2), and 17(5). In response, the company has voluntarily deposited ₹35,00,000 under protest, without admitting liability, pending the final outcome of the proceedings. The company claims there is no material impact on its operations beyond this monetary deposit.
- Investigation initiated by MGST Department under Section 67 of the MGST Act, 2017
- Company deposited ₹35,00,000 voluntarily under protest without admission of liability
- Alleged violations involve GST sections 9(4), 16(2), and 17(5) regarding tax assessments
- Management confirms no material impact on financial or operational activities beyond the deposit
Tembo Global Industries has confirmed that there were no deviations in the utilization of ₹166.2 crores raised through preferential issues in late 2025. As of December 31, 2025, the company has successfully deployed ₹144.67 crores towards its stated objectives, including working capital and investments. Specifically, ₹69.26 crores were used for working capital, while ₹32.24 crores were invested in subsidiaries and associates. The remaining ₹21.53 crores are currently parked in bank accounts, awaiting deployment according to the original plan.
- Raised a total of ₹166.2 crores through multiple preferential issue tranches in November and December 2025.
- Utilized ₹144.67 crores (approximately 87%) of the total proceeds by the end of the December 2025 quarter.
- Major allocations include ₹69.26 crores for working capital and ₹43.17 crores for general corporate purposes.
- Invested ₹8.31 crores in subsidiaries and ₹23.93 crores in associate companies as per the original objects.
- Monitoring agency Acuite Ratings & Research Limited confirmed zero deviation or variation in fund usage.
Tembo Global Industries reported a robust 9M FY26 performance with revenue reaching ₹744 crore and PAT growing 74.2% YoY to ₹68 crore. The company maintains a strong order book of ₹1,484 crore and is in advanced negotiations for additional projects worth ₹700-1,000 crore. Strategic expansions into Defence and Solar are progressing, with Defence production expected to start by Q3 FY27 with a ₹300 crore annual revenue potential. Management has provided a positive outlook, targeting 35-40% revenue growth for FY27 with PAT margins between 10-12%.
- 9M FY26 revenue grew 58.6% YoY to ₹744 crore, while PAT surged 74.2% to ₹68 crore.
- Consolidated order book stands at ₹1,484 crore as of December 2025 with a 12-24 month execution timeline.
- New Vasai manufacturing facility commissioned with a target capacity of 100,000 MT phased over 2-3 years.
- Defence vertical expected to start commercial production by Sept-Oct 2026 with 30-35% EBITDA margins.
- Management targets 35-40% revenue growth for FY27 with 10-12% PAT margins.
Tembo Global Industries Limited has made the audio recording of its Q3 FY26 earnings call available to the public. The call was held on February 05, 2026, to discuss the company's financial performance for the quarter. This disclosure is in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Investors can access the recording via the company's official website to hear management's commentary and responses to analyst queries.
- Earnings call for the Q3 FY26 period was conducted on February 05, 2026.
- Audio recording link has been officially submitted to the National Stock Exchange.
- The recording is hosted on the company's website under the investor relations section.
- Compliance with SEBI LODR Regulations ensures transparency for all stakeholders.
Tembo Global Industries delivered a robust financial performance for 9M FY26, with revenue growing 58.6% YoY to INR 744.2 crore and PAT surging 74.2% to INR 68.2 crore. The company's growth is underpinned by a strong order book of INR 1,484 crore and a massive capacity expansion at its new Vasai facility, which scales production from 18,000 MT to 1,00,000 MT. Strategic diversification into solar and defense sectors is progressing well with land acquisitions and regulatory approvals completed. Additionally, the merger with Tembo Infra is expected to enhance operational efficiencies in the EPC segment.
- 9M FY26 PAT increased by 74.2% YoY to INR 68.2 crore with EBITDA margins expanding to 13.9%.
- Order book stands at INR 1,484 crore as of December 2025, primarily driven by Engineering and EPC projects.
- Vasai facility commenced commercial production, increasing installed capacity by over 5x to 1,00,000 MT.
- Engineering segment revenue grew 52.9% YoY in Q3 FY26 to INR 129.9 crore.
- Identified a potential project pipeline of INR 700+ crore in port construction and fuel farm systems.
Tembo Global Industries reported a strong Q3 FY26 with revenue growing 49.5% YoY to ₹250.7 crore and PAT increasing 36.7% to ₹26.1 crore. The company's order book stands at a robust ₹1,484 crore, primarily driven by Engineering and EPC projects. A significant growth catalyst is the commissioning of the new Vasai facility in January 2026, which scales capacity from 18,000 MT to 1,00,000 MT with a peak revenue potential of ₹700 crore. Furthermore, the company is successfully diversifying into high-growth sectors including Defence and Solar power.
- Q3 FY26 Revenue grew 49.5% YoY to ₹250.7 Cr, while 9M FY26 PAT surged 74.2% to ₹68.2 Cr.
- Order book remains strong at ₹1,484 Cr as of December 2025, with a ₹700+ Cr additional pipeline in discussions.
- Manufacturing capacity increased 5.5x from 18,000 MT to 1,00,000 MT at the newly commissioned Vasai facility.
- EBITDA for 9M FY26 rose 64.7% YoY to ₹103.5 Cr, reflecting improved scale and operational efficiency.
- Strategic diversification into Defence and Solar is progressing with land acquired for 24 solar sites and arms license approvals secured.
Tembo Global Industries reported a robust financial performance for 9M FY26, with revenue growing 58.6% YoY to INR 744 crores and PAT increasing 74.2% to INR 68 crores. The company's growth is supported by a strong order book of INR 1,484 crores and the commencement of production at its new Vasai facility, which scales capacity from 18,000 MT to 100,000 MT. Strategic diversification into solar and defence sectors is also progressing with land acquisitions and regulatory approvals. Additionally, the merger with Tembo Infra is underway to enhance operational efficiency and EPC execution.
- 9M FY26 Revenue grew 58.6% YoY to INR 744 crores, while PAT jumped 74.2% to INR 68 crores.
- Order book stands at INR 1,484 crores as of December 2025, providing strong future revenue visibility.
- Vasai facility commenced production, increasing capacity by over 5x to 100,000 MT with INR 700 Cr annual revenue potential.
- EBITDA for 9M FY26 stood at INR 104 crores, up 64.7% YoY, with margins expanding 52 bps to 13.9%.
- Identified a new project pipeline worth INR 700+ crores in port construction and fuel farm systems.
Tembo Global Industries reported a strong financial performance for Q3 FY26, with consolidated revenue growing 48.5% YoY to ₹250.85 crore. Net profit for the quarter rose 36.7% YoY to ₹26.14 crore, supported by robust growth in both the engineering and textile segments. The company successfully raised ₹151.44 crore through a preferential allotment to fund working capital and strategic entries into defense and solar projects. A new manufacturing facility also became operational during the period, signaling future capacity expansion.
- Consolidated Revenue from Operations increased 48.5% YoY to ₹250.85 crore from ₹168.90 crore.
- Net Profit for the quarter stood at ₹26.14 crore, a 36.7% increase over the previous year's ₹19.12 crore.
- Engineering products segment revenue grew significantly to ₹129.93 crore compared to ₹84.98 crore in Q3 FY25.
- Raised ₹151.44 crore via preferential allotment of 30.76 lakh shares at ₹492 per share.
- New manufacturing facility operationalized, resulting in a ₹1.84 crore increase in depreciation expenses for the quarter.
Tembo Global Industries reported a robust performance for the quarter ended December 31, 2025, with consolidated revenue rising 49.5% YoY to ₹250.70 crore. Net profit surged 73% YoY to ₹26.14 crore, supported by steady growth in both engineering and textile segments. The company successfully raised ₹151.44 crore through a preferential allotment to fund working capital and new ventures in Defense and Solar projects. A new manufacturing facility also became operational during the quarter, signaling future capacity expansion.
- Consolidated Revenue from Operations grew 49.5% YoY to ₹25,069.99 Lakhs.
- Consolidated Net Profit increased 73% YoY to ₹2,613.83 Lakhs from ₹1,510.21 Lakhs.
- Raised ₹151.44 crore via preferential allotment of 30.78 lakh shares at ₹492 per share.
- Engineering products segment revenue reached ₹129.93 crore, while Textile trading contributed ₹121.15 crore.
- New manufacturing facility operationalized, leading to a ₹1.84 crore increase in depreciation expenses.
Tembo Global Industries has announced the acquisition of a controlling 75.09% stake in Tembo Classic Engineering Private Limited, formerly known as Tembo Defense Products. The acquisition involves a cash consideration of Rs 126.71 crore for 2,90,62,305 equity shares. This strategic move marks the company's entry into the defense sector, focusing on the manufacturing and maintenance of armaments and defense equipment. The target entity is a related party and was recently incorporated in February 2024, indicating a fresh venture into the defense space.
- Acquisition of 2,90,62,305 equity shares resulting in a total shareholding of 75.09%
- Total cost of acquisition is Rs 126.71 crore settled via cash consideration
- Target entity specializes in manufacturing, repairing, and dealing in armaments and defense products
- Transaction is classified as a related party transaction conducted at arm's length
- Target company is a newly incorporated entity (February 2024) focused on defense opportunities
Tembo Global Industries has finalized the acquisition of a 75.09% controlling stake in Tembo Classic Engineering Private Limited (formerly Tembo Defense Products). The company acquired 2,90,62,305 equity shares for a total cash consideration of Rs 60.57 crore. This strategic move is aimed at diversifying into the defense sector, specifically in manufacturing, repairing, and testing armaments. The target entity is a newly incorporated firm (February 2024), indicating a greenfield expansion into the high-growth defense industry.
- Acquired 2,90,62,305 equity shares resulting in a total shareholding of 75.09%
- Total cost of acquisition for the incremental 61.37% stake is Rs 60.57 crore
- Target entity specializes in defense products, including armaments manufacturing and maintenance
- The acquisition is a related party transaction conducted at arm's length
- Move aligns with the company's strategy to explore new business opportunities in the defense sector
Tembo Global Industries Limited has scheduled its earnings conference call for February 5, 2026, at 4:30 PM IST to discuss its financial performance for the third quarter and nine-month period of FY26. The call will be led by Managing Director Sanjay Patel and Non-Executive Director Shabbir Merchant. This routine disclosure allows institutional investors and analysts to engage with management regarding the company's recent operational results. Such calls are critical for understanding the underlying drivers of the company's financial health and future growth trajectory.
- Earnings conference call scheduled for February 5, 2026, at 16:30 IST.
- Discussion will cover financial results for Q3 FY26 and the 9-month period ending December 2025.
- Management representation includes Managing Director Sanjay Patel and Director Shabbir Merchant.
- Universal dial-in numbers for the call are +91 22 6280 1341 and +91 22 7115 8242.
- Investor relations support provided by Ernst & Young (EY) consultants.
Tembo Global Industries has commenced commercial production at its new 120,000 sq. ft. manufacturing facility in Vasai, following a capital investment of INR 75 Crores. The facility is expected to scale the company's total installed capacity to 100,000 metric tonnes (MT) over the next two to three years. Management projects that this facility alone will generate peak annual revenues of up to INR 700 Crores at full operational scale. The site also includes a dedicated R&D center to enhance product innovation and operational efficiency.
- INR 75 Crores total capital investment for the new 120,000 sq. ft. state-of-the-art facility
- Overall installed capacity to increase to approximately 100,000 MT through phased expansion
- Anticipated peak annual revenue of INR 700 Crores from the Vasai facility within 2-3 years
- Strategic logistical advantages in Vasai expected to optimize costs and procurement
- In-house R&D center established to drive innovation across the product portfolio
Financial Performance
Revenue Growth by Segment
The Engineering Products division recorded a 1.9x YoY growth in FY25 compared to FY24. In H1 FY26, the Engineering segment contributed 47% of revenue while Textiles contributed 53%. Overall revenue for Q2 FY26 grew by 49.8% YoY to INR 245.4 Crores, and H1 FY26 revenue surged 68.9% YoY to INR 493.5 Crores.
Geographic Revenue Split
As of H1 FY26, the revenue split is 84% Domestic and 16% Exports. The company maintains an international presence in the USA, Middle East (including Egypt), and Europe, aiming to diversify revenue and reduce reliance on the Indian domestic market.
Profitability Margins
Gross Profit Margin improved to 29.7% in FY25 from 18.4% in FY24. PAT Margin significantly improved to 7.34% in FY25 (INR 54.7 Cr) from 3.24% in FY24. In H1 FY26, PAT margin further expanded to 8.5% (INR 42.0 Cr), a 167 bps increase YoY, driven by the shift toward high-margin EPC and engineering manufacturing.
EBITDA Margin
EBITDA margin stood at 12.4% in H1 FY26, representing a 455 bps YoY expansion from 7.9% in H1 FY25. Q2 FY26 EBITDA margin was 13.5% (INR 33.2 Cr). This growth is attributed to operational efficiencies and a prudent focus on margin-accretive engineering and EPC segments.
Capital Expenditure
The company is undertaking a massive greenfield expansion at Vasai to increase capacity 6x from 18,000 MTPA to 105,000 MTPA by Q4 FY26. Additionally, a total capex outlay of INR 1,633 Crores is planned for unrelated diversifications into a 120MW Solar IPP and a guns/ammunition manufacturing unit.
Credit Rating & Borrowing
CARE Ratings reaffirmed the long-term rating at 'CARE BBB-' but revised the outlook from 'Stable' to 'Negative' in October 2025. This revision reflects risks from aggressive debt-funded capex. Finance costs rose 93.1% YoY to INR 11.6 Cr in H1 FY26 due to increased borrowing for expansion.
Operational Drivers
Raw Materials
Key raw materials include steel (for ERW pipes, fasteners, and hangers) and textile yarn. Steel represents a significant portion of the cost of goods sold, which stood at INR 361.1 Cr (73% of revenue) in H1 FY26.
Import Sources
Raw materials are sourced domestically within India for the engineering and textile segments, while the company leverages its presence in the Middle East and USA for market-specific requirements.
Key Suppliers
Not specifically named in the documents, but the company maintains long-term relationships with various suppliers to support its 18,000 MTPA production capacity.
Capacity Expansion
Current manufacturing capacity is 18,000 MTPA. The company is expanding this by 6x to reach 105,000 MTPA, with commercial production expected to commence in H1 FY26/Q4 FY26 to meet the growing order book of INR 1,525 Cr.
Raw Material Costs
Cost of Goods Sold (COGS) was INR 522.2 Cr in FY25. COGS as a percentage of revenue decreased from 81.6% in H1 FY25 to 73.2% in H1 FY26, indicating better procurement strategies and higher value-add in the EPC segment.
Manufacturing Efficiency
Efficiency is driven by forward and backward integration in the engineering segment. The shift to high-margin ERW pipe manufacturing is expected to improve PBILDT margins post-commissioning of the new facility.
Logistics & Distribution
Distribution is handled through domestic channels (84% of revenue) and international shipping to the USA and Middle East. Export-import policies and logistics uncertainties are cited as primary threats to trade stability.
Strategic Growth
Expected Growth Rate
63.36%
Growth Strategy
Growth will be achieved through a 6x capacity expansion to 105,000 MTPA, foraying into high-margin sectors like Defence (guns and ammunition) and Solar IPP (120MW), and executing a robust EPC order book of INR 967.59 Cr. The company is also targeting new sectors like port construction and data centers with a potential order value exceeding INR 700 Cr.
Products & Services
Specialized metal products including Pipe Support Systems, Fasteners, Anchors, HVAC systems, ERW Pipes, and textile yarn. Services include EPC contracting for civil, MEP, and irrigation infrastructure.
Brand Portfolio
Tembo
New Products/Services
New launches include ERW pipes (commissioned July 2025) and specialized Defence products. The company signed an MoU for a defence manufacturing unit in Maharashtra, expected to contribute significantly to future high-margin revenue.
Market Expansion
Expansion into the Gulf Cooperation Council (GCC) countries, USA, and Europe through a 75:25 strategic partnership with MASAH Specialized Construction Co.
Market Share & Ranking
Not disclosed in available documents, but the company is a prominent player in the pipe support and fastener industry with UL and FM approvals.
Strategic Alliances
Strategic partnership with MASAH Specialized Construction Co. (75:25) and an agency agreement with TAM Capital. It also operates JVs like Tembo PES JV and Tembo Global Infra Limited.
External Factors
Industry Trends
The industry is shifting toward localized manufacturing under 'Atmanirbhar Bharat'. Tembo is positioning itself by diversifying from pure trading (76% of FY24 revenue) to manufacturing and high-value EPC (39% manufacturing in FY25).
Competitive Landscape
Operates in a competitive landscape for yarn trading and industrial products, but differentiates through specialized engineering certifications and integrated manufacturing.
Competitive Moat
The moat is built on international quality certifications (UL and FM Approvals from USA) and a 6x capacity expansion. These certifications act as entry barriers and allow the company to win prestigious international clients.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending and 'Make in India' initiatives, which drive demand for the company's irrigation and EPC services.
Consumer Behavior
Increased demand for sustainable infrastructure and renewable energy has prompted the company's entry into the Solar IPP sector.
Geopolitical Risks
Trade uncertainties and changes in export-import policies in the USA and Middle East could affect the 16% export revenue stream.
Regulatory & Governance
Industry Regulations
Products must comply with ISO 9001:2015, UL (Underwriter’s Laboratory Inc., USA), and FM Approval (USA) standards for fire sprinkler and pipe support installations.
Environmental Compliance
Not specifically disclosed in INR, but the company is entering the Solar IPP segment (120MW) to align with green energy trends.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 28.2% (INR 21.5 Cr tax on INR 76.2 Cr EBT).
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful execution of the INR 1,633 Cr unrelated greenfield capex in Solar and Defence. Failure or delay could impact liquidity, as reflected in the 'Negative' credit outlook.
Geographic Concentration Risk
84% of revenue is concentrated in the Indian domestic market, making the company vulnerable to local economic downturns.
Third Party Dependencies
The EPC business currently relies on procuring pipes from other manufacturers, though this dependency will reduce once the internal ERW pipe facility stabilizes.
Technology Obsolescence Risk
The company is mitigating technology risks by investing in new manufacturing units for ERW pipes and Zinc Flake Dies to maintain a competitive edge.
Credit & Counterparty Risk
EPC project receivables include a cash retention component. However, the company uses LC-backed trade receivables (90-180 days) to mitigate counterparty default risks.