Tembo Global Industries Q1 FY27 Results: Revenue Rises 21.9%, PAT Jumps 55.3% as Engineering, EPC and New Growth Businesses Drive Expansion

Tembo Global Industries Limited has started FY27 on a strong footing, reporting healthy growth in revenue and profitability in the first quarter. According to the company’s Q1 FY27 earnings call held on August 19, 2026, revenue from operations increased 21.9% year-on-year to ₹302 crore, while PAT rose 55.3% YoY to ₹31.2 crore. The company attributed the performance primarily to strong execution in its engineering and EPC business, improved operational efficiency, a better business mix and disciplined cost management. Management said it remains confident of achieving its FY27 revenue guidance of ₹1,600 crore.

Engineering and EPC Becomes the Core Growth Engine

The biggest change in Tembo Global’s business mix was the sharp rise in the contribution of its engineering and EPC activities. Management said the engineering and EPC business accounted for approximately 99% of the revenue mix in Q1 FY27, compared with 44% in Q1 FY26, while textiles contributed around 1%. The company said its engineering and EPC business recorded 172.7% growth, supported by a current order book of more than ₹1,500 crore and a bidding pipeline of over ₹2,400 crore. Demand remains strong across oil and gas, water infrastructure, marine projects, refineries, industrial projects, construction, fuel farms and other infrastructure segments.

The company believes its increased EPC capabilities, larger project execution team and focus on complex projects are helping improve project profitability. The newly developed Vasai facility is also expected to play an important role in the next phase of growth as capacity utilisation increases.

Q1 FY27 Financial Performance

Tembo Global reported broad-based improvement across its key financial metrics during Q1 FY27. Revenue from operations stood at ₹302 crore, up 21.9% year-on-year. EBITDA increased substantially by 74.8% YoY to ₹49.2 crore, while EBITDA margin expanded by 493 basis points to 16.3%.

Profit before tax increased 69.1% YoY to ₹43.7 crore, while profit after tax rose 55.3% to ₹31.2 crore. PAT margin improved to 10.3%, compared with 8.1% in the corresponding quarter of the previous year. Management attributed the margin expansion to the higher contribution from engineering and EPC projects, better product and project mix, manufacturing utilisation, operating efficiencies and cost discipline.

For FY27, management indicated that it is targeting an overall EBITDA margin of around 16%-18%.

Order Book and Pipeline Provide Revenue Visibility

Tembo Global ended the quarter with an order book of more than ₹1,500 crore, while projects worth more than ₹2,400 crore were in the bidding pipeline. Management did not provide a detailed division-wise breakup of the order book during the call but indicated that the pipeline remains active and new orders are expected to be added progressively.
The sizeable order book and bidding pipeline are important for the company’s FY27 revenue target of ₹1,600 crore. Management also indicated that it intends to outperform its existing guidance if execution conditions remain favourable.

Vasai Facility: Capacity Utilisation Targeted at 65%-70%

The Vasai manufacturing facility currently operates at around 35%-40% capacity utilisation, according to management. The company expects utilisation to increase to approximately 65%-70% by the end of FY27 and aims to reach peak utilisation within roughly one-and-a-half to two years.

The facility has approximately 1 lakh MTPA capacity, covering ERW and strut-channel-related manufacturing. Management said ERW currently represents around 40%-50% of the capacity mix, although the contribution of other products is increasing.

An important part of the strategy is captive utilisation. Products manufactured by the company can also be used in its EPC business, allowing Tembo to combine manufacturing with engineering value addition. Management described captive utilisation plus value-added engineering as a key combination for improving long-term profitability.

Solar Business to Add Recurring Revenue

Tembo Global is also developing its renewable energy portfolio. Four solar project sites have already been commissioned and are operational, while the remaining projects are expected to be commissioned in Q2 FY27, with commercial operations expected to begin in Q3 FY27. Management expects the solar business to provide stable and recurring cash flows and diversify the company’s revenue base.

For FY27, management expects approximately ₹50 crore-₹60 crore of revenue contribution from the solar business. At peak levels, the contribution is expected to reach around ₹80 crore-₹90 crore. The projects are supported by a 25-year power purchase agreement, according to management.

Management indicated that the solar portfolio is expected to generate an IRR of approximately 15%-16%, excluding the subsidy component from that calculation.

Major Push into Defence Manufacturing

One of the most significant long-term developments for Tembo Global is its entry into defence manufacturing. During Q1 FY27, its subsidiary Tembo Classic Engineering Private Limited received an ammunition manufacturing licence. Tembo Global holds approximately 75%-76% in the subsidiary, according to management.
The company has acquired land in Amravati for its planned defence manufacturing facility and has appointed a project planning consultant. Construction planning is already underway. Management expects prototype and initial production activities to begin during Q3 FY27, with the first batch expected around Q4 FY27. Full-capacity production is expected to develop in FY28.

For the first phase of the defence project, management indicated an investment of around ₹550 crore, followed by another phase involving approximately ₹400 crore-₹450 crore. The funding is expected to comprise debt, internal accruals and equity participation. For the first phase, management indicated potential debt funding of approximately ₹200 crore-₹250 crore.

Defence Revenue Opportunity from FY28

Management expects the defence business to become a meaningful contributor from FY28. During the earnings call, the company indicated a potential revenue contribution of approximately ₹300 crore-₹350 crore from the defence arms and ammunition business in FY28.

Management also indicated that the defence business could operate at an EBITDA margin of approximately 45%-50%, while an earlier response during the call indicated a potential PAT margin of around 30%-35%.
The company said its defence strategy is aligned with the broader domestic push towards indigenous manufacturing and the Make in India and Atmanirbhar Bharat initiatives.

Aerospace and UAV Venture Adds Another Growth Driver

Tembo is also expanding into aerospace and unmanned aerial vehicle technology. The company has announced a strategic international collaboration involving JR UAV Europe Italy and JR PROPO Japan through its company JR UAV Limited.

The objective is to bring advanced UAV technologies to India and combine international technological expertise with Tembo’s engineering and manufacturing capabilities. The company expects to begin UAV component manufacturing from its Vasai facility in Q3 FY27.

Management has indicated a first-calendar-year revenue target of approximately ₹100 crore for the aerospace/UAV manufacturing opportunity. The company said there are already orders in place associated with the collaboration, providing the basis for its revenue guidance.

Current Debt and Defence Funding Plans

Tembo Global’s consolidated debt was indicated at approximately ₹400 crore during the earnings call. Management clarified that the solar business forms a significant component of the company’s debt funding. No additional debt is currently required for the solar business, according to the finance team.

For defence expansion, the company expects to raise approximately ₹200 crore-₹250 crore of debt during the first phase, as part of the broader ₹550 crore investment plan. The remaining funding is expected to come through internal accruals and equity participation.

The company’s ability to execute its expansion while maintaining financial discipline will therefore remain an important factor for investors to monitor.

Working Capital Remains an Area to Watch

Management said working capital stood at approximately 90 days at the end of Q1 FY27 and is targeting improvement towards 80-90 days. Better working-capital efficiency could support cash generation as the company scales its EPC, manufacturing, solar, defence and aerospace operations.

Textile Business Expected to Plateau

The sharp increase in the engineering and EPC contribution has significantly reduced the relative importance of the textile business. Management said textiles accounted for approximately 1% of revenue in Q1 FY27 and indicated that the segment is expected to remain broadly plateaued.

The company’s strategic direction is therefore increasingly centred on engineering, EPC, manufacturing and newer businesses such as solar, defence and aerospace.

FY27 Outlook

Tembo Global has set a ₹1,600 crore revenue guidance for FY27. Management expects the engineering and EPC business to remain the primary contributor, supported by the existing order book and bidding pipeline. Solar is expected to add ₹50 crore-₹60 crore during the year, while defence and aerospace initiatives are expected to begin contributing as new facilities and manufacturing programmes become operational.

The company is targeting an EBITDA margin of approximately 16%-18% at the company level. Management also indicated that the objective is to exceed the stated guidance if execution remains strong.

Key Takeaways for Investors

Tembo Global’s Q1 FY27 earnings call highlights a significant transformation in the company’s business mix. Revenue and profitability are growing, while engineering and EPC have become the dominant business. The ₹1,500 crore-plus order book and ₹2,400 crore-plus bidding pipeline provide visibility for near-term growth.

At the same time, the company is investing in multiple new growth areas. Solar could provide recurring cash flows, while defence and aerospace could create substantially larger revenue and margin opportunities from FY28 onward.

However, investors will need to monitor execution of the large order pipeline, working-capital requirements, debt levels, defence capex, commissioning timelines and the actual ramp-up of the new businesses. The transition from an EPC-led growth story to a diversified engineering, manufacturing, defence, aerospace and renewable-energy platform could materially influence Tembo Global’s future financial profile.

Source: Tembo Global Industries Limited Q1 FY27 Earnings Conference Call transcript dated August 19, 2026. The above article is based on management commentary and financial information provided in the earnings call transcript.

Disclaimer

The information in this article is based on the company’s official financial results, stock exchange filings, press releases, investor presentations, and other publicly available disclosures. It is provided for informational and educational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any security. While reasonable care has been taken to present the information accurately, readers should refer to the company’s official filings for complete and authoritative details and conduct their own research before making any investment decision