TEMBO - Tembo Global
📢 Recent Corporate Announcements
Tembo Global Industries' subsidiary, Tembo Classic Engineering Private Limited (TCEPL), has been granted a license by the Ministry of Home Affairs to manufacture ammunition of various calibers. This regulatory approval marks the company's formal entry into the high-growth defense and security manufacturing sector. The license enables TCEPL to commence commercial production as per its planned schedule, aligning with the 'Make in India' initiative. This diversification follows the company's recent expansions into EPC contracting in 2023 and solar power in 2024.
- Subsidiary TCEPL granted ammunition manufacturing license by the Ministry of Home Affairs on April 15, 2026.
- License covers the manufacturing of ammunition across various calibers for domestic and global markets.
- Strategic diversification into defense follows previous expansions into EPC (2023) and Solar (2024).
- Company is now positioned to commence commercial production of arms and ammunition as per schedule.
Tembo Global Industries' subsidiary, Tembo Classic Engineering Private Limited (TCEPL), has been granted a license by the Ministry of Home Affairs to manufacture ammunition of various calibers. This development marks a strategic entry into the Indian defense manufacturing sector, a high-growth area with high entry barriers. The license authorizes the company to commence commercial production of arms and ammunition under the specified regulatory framework. This move is expected to significantly diversify the group's revenue streams and strengthen its market position in the security sector.
- Subsidiary TCEPL granted license by the Ministry of Home Affairs for ammunition of various calibers.
- The development marks the company's formal expansion into the defense and security manufacturing sector.
- TCEPL is poised to commence commercial production for arms and ammunitions as per the regulatory schedule.
- Formerly known as Tembo Defence Products Private Limited, the subsidiary is now fully authorized for manufacturing activities.
Tembo Global Industries Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. This is a standard quarterly filing confirming that the company has processed requests for the dematerialization of physical share certificates. The document ensures that share certificates received were mutilated and cancelled after due verification. This filing is purely procedural and does not reflect any change in the company's financial or operational status.
- Compliance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Confirmation of dematerialization of share certificates within stipulated timelines.
- Standard administrative filing for the quarter ended March 2024.
- No material impact on the company's business operations or financial health.
Tembo Global Industries Limited has announced the resignation of Mr. Piyush Jashbhai Patel from his position as a Non-Executive Director, effective April 9, 2026. The resignation is attributed to the director's ill health, as per the formal intimation to the National Stock Exchange. The company has acknowledged his contributions during his tenure. This is a routine board-level change and is not expected to disrupt the company's core business operations.
- Mr. Piyush Jashbhai Patel (DIN: 01958072) resigned as Non-Executive Director effective April 9, 2026.
- The resignation is due to personal health reasons (ill health).
- The disclosure was made under Regulation 30 of the SEBI (LODR) Regulations, 2015.
- The company has not yet named a successor for the vacated board position.
Tembo Global Industries Limited has announced the closure of its trading window for all designated persons starting April 1, 2026. This closure is a mandatory regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations ahead of the declaration of financial results for the quarter and year ending March 31, 2026. The window will remain closed until 48 hours after the financial results are made public. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure begins on Wednesday, April 1, 2026.
- Closure is in relation to the financial results for the quarter and year ended March 31, 2026.
- The restriction applies to all designated persons and insiders of the company.
- Trading window will reopen 48 hours after the official announcement of the financial results.
Shareholders of Tembo Global Industries have approved a massive increase in the company's investment, loan, and guarantee limits to ₹3000 Crore under Section 186. The Extraordinary General Meeting (EGM) also resulted in the approval of issuing Non-convertible Debentures (NCDs) of at least ₹50 Crore and an overall increase in borrowing limits. Furthermore, appointments of new directors and material related party transactions were cleared with nearly unanimous support. These approvals grant the management significant financial flexibility for future capital allocation and expansion.
- Approved increasing the limit for investments, loans, and guarantees up to ₹3000 Crore with 99.98% votes in favor
- Authorized the issuance of Non-convertible Debentures (NCDs) for an amount not less than ₹50 Crore
- Passed special resolutions to increase borrowing limits and create charges on company assets to secure debt
- Approved the appointment of Piyush Jashbhai Patel as Non-Executive Director and Ankit Bhaskar as Independent Director
- All nine resolutions passed with over 99.9% of valid votes cast in favor during the EGM
Tembo Global Industries held an Extraordinary General Meeting on March 24, 2026, to approve significant financial resolutions. The company sought shareholder consent to issue Non-convertible Debentures (NCDs) of at least ₹50 crores and to increase its overall borrowing limits. Other key items included approving material related party transactions and amending the Memorandum of Association's object clause to support business growth. These steps indicate a strategic move towards capital expansion and structural realignment.
- Proposed issuance of Non-convertible Debentures (NCDs) for an amount not less than ₹50 crores
- Approval sought for increasing investment, loan, and guarantee limits under Sections 185 and 186
- Resolution to increase borrowing limits and create charges on company assets to secure debt
- Amendment to the Object Clause of the Memorandum of Association for business furtherance
- Appointment of Piyush Jashbhai Patel and Ankit Bhaskar to the Board of Directors
Tembo Global Industries Limited has informed the exchanges about a scheduled plant visit and meeting with investors and analysts on March 20, 2026. The session is set to begin at 02:30 PM and aims to provide stakeholders with a better understanding of the company's operational setup. The management has explicitly stated that no Unpublished Price Sensitive Information (UPSI) will be shared during this visit. This is a standard corporate governance practice to maintain transparency with the investment community.
- Plant visit and analyst meeting scheduled for Friday, March 20, 2026
- The event is slated to commence from 02:30 PM onwards
- Management confirmed that no Unpublished Price Sensitive Information (UPSI) will be disclosed
- The disclosure is made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015
Tembo Global Industries Limited's subsidiary, Tembo Classic Engineering Private Limited, has entered into a Non-Disclosure Agreement (NDA) with a leading Public Sector Undertaking (PSU) in the defense sector. The collaboration aims to explore opportunities for the indigenous design, development, and production of engineering products for the Government of India. While the arrangement is currently exploratory and non-binding, it marks a strategic move into the high-growth defense manufacturing space. Investors should note that there is currently no certainty of a definitive business transaction or financial impact.
- Subsidiary Tembo Classic Engineering (formerly Tembo Defence Products) signed an NDA with a major Defense PSU.
- The partnership focuses on the indigenous development of defense products under the 'Make in India' framework.
- The arrangement is exploratory in nature and intended to facilitate discussions and information exchange.
- No binding commitment or definitive business transaction has been established at this stage.
- The move signifies Tembo Global's intent to expand its engineering capabilities into the defense sector.
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.
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.