Tembo Global Industries Outlines ₹1,715 Crore Capex Plan Across Manufacturing, Solar and Defence
Tembo Global Industries Limited has outlined a significant capital expenditure programme as part of its strategy to expand manufacturing capacity and build new businesses across engineering, renewable energy and defence. The company’s latest investor presentation for Q1 FY27 highlights capex already incurred as well as planned investments in its manufacturing, solar power and defence businesses.
Tembo Global Industries delivered a strong financial performance in Q1 FY27, with consolidated revenue rising 21.9% year-on-year to ₹302.4 crore from ₹248.1 crore in Q1 FY26. EBITDA increased 74.8% to ₹49.2 crore, while the EBITDA margin improved to 16.3% from 11.4%, supported by better operating efficiencies and a higher contribution from the Engineering & EPC business. Profit Before Tax rose 69.1% to ₹43.7 crore, while consolidated PAT grew 55.3% to ₹31.2 crore, compared with ₹20.1 crore in the year-ago quarter. PAT margin also improved to 10.3% from 8.1%, reflecting stronger profitability during the quarter.
₹75 Crore Capex for Vasai Manufacturing Facility
Tembo Global Industries has completed the factory work at its new Vasai manufacturing facility, which has been established as part of the company’s manufacturing capacity expansion.
The company has incurred ₹75 crore of capex for the new facility. Of this, ₹50 crore was funded through debt, while the balance was funded by the company and promoters.
The expansion has increased the company’s manufacturing capacity from 18,000 tonnes per annum to 1,00,000 tonnes per annum. The new capacity was commissioned in January 2026.
The expanded facility includes capacity for:
- ERW Pipes – 60,000 MTPA
- Strut Channels – 30,000 MTPA
- Existing engineering product capacity
Tembo expects the Vasai facility to generate revenue potential of approximately ₹700 crore at peak utilisation.
The facility is also equipped with an in-house R&D facility, which the company expects to support product innovation, improve operational efficiency and generate economies of scale. Its strategic location is also expected to provide logistical advantages.
₹640 Crore Capex Planned for Solar Power
Tembo Global Industries is also investing significantly in the renewable energy business.
The company has outlined a ₹640 crore capex requirement for its solar power projects. The proposed funding structure includes:
- ₹420 crore through debt
- ₹120 crore through equity
- ₹100 crore government subsidy, expected after commissioning
The company has signed a 120 MW Power Purchase Agreement (PPA) with the Maharashtra government and has finalised land for the projects. The first loan disbursement from financial institutions has also been completed.
For its solar SPVs, four project sites were already operational in August 2026, while the remaining 26 sites are expected to be commissioned in Q2 FY27.
The solar portfolio is expected to generate approximately ₹80 crore of revenue in FY27.
₹1,000 Crore Defence Manufacturing Capex
Another major component of Tembo Global Industries’ long-term investment strategy is its entry into defence manufacturing.
The company has outlined a ₹1,000 crore capex outlay for establishing a defence products manufacturing facility in Maharashtra.
Tembo has received the necessary ammunition manufacturing licence through Tembo Classic Engineering Pvt. Ltd. and has acquired land in Amravati, Maharashtra, for the proposed facility.
Construction is expected to begin by the end of August 2026, with commercial production targeted from Q1 FY28.
The proposed defence manufacturing facility is intended to support the company’s strategy of developing an integrated manufacturing platform for small arms and ammunition while leveraging international technology partnerships.
Capex Supports Tembo’s Diversification Strategy
The company’s capex programme represents a shift from its traditional engineering products and textile operations towards larger manufacturing, EPC, solar and defence opportunities.
The ₹75 crore Vasai investment is already supporting a substantial increase in manufacturing capacity, while the proposed ₹640 crore solar investment is aimed at creating a recurring renewable-energy revenue stream.
Meanwhile, the ₹1,000 crore defence manufacturing investment represents the company’s longer-term ambition to establish a presence in the defence manufacturing sector.
Overall, the three major investments represent a potential ₹1,715 crore capital expenditure programme, based on the figures disclosed in the investor presentation.
Tembo’s management believes that these investments can strengthen its manufacturing capabilities, expand its addressable markets and create opportunities for higher-margin businesses over the coming years.
Source: Tembo Global Industries Limited Q1 FY27 Investor Presentation, August 2026. The capex figures and project timelines above are based on company disclosures and should be viewed alongside the risks and forward-looking statements contained in the presentation.