Tembo Global Industries Limited (NSE: TEMBO) reported strong second-quarter and half-year FY26 results, highlighting broad-based growth across its engineering, EPC, and textile divisions. The industrial manufacturing and fabrication specialist recorded a 49.8 percent year-on-year rise in consolidated revenue for Q2 FY26, reaching ₹245.4 crore. Half-year FY26 revenue came in at ₹493.5 crore, up 68.9 percent compared to the same period last year.
The company’s profitability metrics also expanded significantly. Earnings before interest, tax, depreciation and amortization (EBITDA) for Q2 FY26 stood at ₹33.2 crore, reflecting a 125.9 percent increase year-on-year. Profit after tax for the quarter rose to ₹21.9 crore, up 50.5 percent. Half-year PAT surged 110.2 percent to ₹42 crore, reinforcing the operational leverage emerging from capacity expansion and margin-focused project execution.
The financial performance positions Tembo Global Industries as a fast-scaling player in India’s infrastructure and manufacturing ecosystem, with sector coverage spanning oil and gas, HVAC systems, shipbuilding, nuclear power, and EPC contracts for industrial and utility installations.
How is Tembo Global Industries expanding margins across engineering and textile verticals?
The company’s engineering and EPC business continues to serve as the key driver of profitability, delivering Q2 FY26 revenue of ₹127 crore, a 30.2 percent increase from the prior year. Segment EBIT climbed 47.5 percent to ₹33.8 crore, while EBIT margins surged by 1,405 basis points year-on-year to 26.7 percent. Sequentially, the segment also grew 15.3 percent, indicating healthy order execution and improved product mix.
In the textile vertical, revenue reached ₹121.8 crore in Q2 FY26, marking a 61.4 percent year-on-year jump, although this was a 13.3 percent decline from Q1. EBIT rose from ₹0.2 crore to ₹1.8 crore year-on-year, with EBIT margins improving from 0.3 percent to 1.4 percent. While the textile segment operates at a lower margin base, it contributed meaningfully to overall revenue scale.
Combined, these segments reflect Tembo Global Industries’ dual approach: leveraging the high-margin nature of precision engineering fabrication while scaling volume through commodity-linked textile trading. This strategy is designed to improve cash flow and absorption of fixed overheads, especially as the company ramps up new capacities.
What capacity expansions and project milestones are defining the FY26 roadmap?
Tembo Global Industries is in the midst of a significant capacity buildout, with a new facility progressing as per schedule. As of Q2 FY26, approximately 40 to 50 percent of the machinery had been installed. The remaining equipment is expected to be commissioned by the end of Q3 FY26. Once fully operational, this facility will increase production throughput and enable faster fulfillment of large-scale domestic and export orders.
In its solar portfolio, Tembo Global Industries has completed land acquisition for 21 out of 30 targeted sites. Financing activities have progressed in parallel, including a ₹471 crore arrangement led by the Indian Renewable Energy Development Agency (IREDA), where processing formalities have been completed.
The company also updated its progress in the defence vertical. The Government of Maharashtra has allocated land for the defence manufacturing facility, with a state subsidy proposal currently under review by the High-Powered Committee of Maharashtra.
These developments indicate that Tembo Global Industries is not merely scaling in volume but is strategically entering sectors with higher long-term margin potential and national infrastructure relevance.
How is international expansion shaping Tembo’s order book visibility?
To support its growing product and sectoral portfolio, Tembo Global Industries is expanding its international presence. During the quarter, the company entered into new agency agreements, including a notable partnership in Kuwait. This move supports the firm’s goal of strengthening its brand in global EPC and engineering markets.
Tembo’s products, which include components for fire sprinkler systems, HVAC, anti-vibration systems, pipe supports, and ductile and MS plate fittings, are certified by leading global agencies including Underwriter’s Laboratory and FM Approval in the United States. This certification base strengthens the firm’s bid credibility for export contracts.
The company closed the quarter with an order book of ₹1,335 crore and an active bidding pipeline exceeding ₹2,150 crore, ensuring strong forward visibility. Institutional investors tracking the stock have cited this multi-year backlog as a critical valuation anchor, especially given the steady progression of new capacity and improved working capital discipline.
What are analysts watching for in the next phase of Tembo’s growth?
While the headline growth numbers are strong, analysts will be closely monitoring execution across three key fronts in the coming quarters: the commissioning and ramp-up of the new facility, monetization timelines in the solar and defence segments, and the durability of operating margins in both engineering and textiles.
Tembo Global Industries has signaled that its expansion is not purely demand-led but strategically underpinned by improved systems, project planning, and structured financial execution. As a result, margins are expected to stabilize at higher levels compared to prior years, with FY26 shaping up to be a pivotal year in the company’s transformation journey.
Looking ahead, the management reiterated its commitment to strengthening operational execution, improving the working capital cycle, and deepening participation in infrastructure-led growth sectors. The focus remains on delivering sustainable shareholder value through a disciplined and diversified industrial growth model.
What are the key takeaways from Tembo Global Industries’ Q2 and H1 FY26 results?
- Tembo Global Industries reported Q2 FY26 revenue of ₹245.4 crore, a 49.8% year-on-year increase.
- Half-year FY26 revenue rose 68.9% to ₹493.5 crore, supported by both engineering and textile divisions.
- Q2 PAT rose 50.5% year-on-year to ₹21.9 crore, while H1 PAT surged 110.2% to ₹42 crore.
- Q2 EBITDA climbed 125.9% year-on-year to ₹33.2 crore, with margins expanding to 13.5%.
- Engineering and EPC EBIT margin reached 26.7% in Q2 FY26, up 1,405 basis points year-on-year.
- Textile revenue grew 61.4% year-on-year to ₹121.8 crore, though margins remained modest at 1.4%.
- Capacity expansion is on track, with 40–50% of new plant machinery installed and the rest due by Q3 FY26.
- Land acquisition is complete for 21 of 30 solar project sites; IREDA-led ₹471 crore funding is progressing.
- Defence manufacturing land has been allocated by the Maharashtra government; subsidy proposal awaits clearance.
- The order book stands at ₹1,335 crore, with a ₹2,150 crore bidding pipeline ensuring strong future visibility.
- International expansion continues, including a new agency agreement signed in Kuwait.
- The company is focused on infrastructure-driven sectors, margin resilience, and capital efficiency.
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