1.At a Glance

Tube Investments of India Ltd (TII), the Murugappa Group’s shiny mechanical Swiss Army knife, just wrapped up Q2FY26 looking like a disciplined student with a sudden midterm dip. The company clocked₹5,523 crore in consolidated revenue, up12.2% YoY, but net profit slipped~9.7% YoY to ₹187 crore, suggesting that while the top line went to the gym, the bottom line decided to hit the snooze button.

At amarket cap of ₹57,904 croreand astock P/E of 92.4, it’s priced like it manufactures gold-plated chains instead of automotive ones. TheROCE at 21.8%andROE at 12.8%remind us that efficiency remains the Murugappa family’s genetic trait. Yet, with abook value of ₹389and a price-to-book of7.7x, the market clearly believes TII’s future is shinier than a new Hercules bicycle bell.

Thedebt remains negligible (₹705 crore)— the company could probably pay it off with one year of “other income” alone. But investors aren’t smiling much: the stock isdown 28.5% YoY, proving that even conglomerate charm can’t fight gravity forever.

2.Introduction – The Murugappa Multitool

TII is that overachieving cousin who’s into everything — from bicycle spokes to electric tractors, auto chains, industrial motors, and now… pharmaceuticals. Yes, this metal maestro just enteredCDMO and APImanufacturing. Because why not? When you’re part of a ₹74,200 crore conglomerate, curiosity isn’t a sin, it’s a business model.

The company’s identity today is a glorious mashup: one-third engineering excellence, one-third industrial electrification, and one-third “we’ll try everything else.” It’s part of the Murugappa Group, home to legends likeCholamandalam Finance, CUMI, Coromandel International, and EID Parry— basically the Hogwarts of Indian capitalism.

Despite the fancy diversification, the star divisions remain itsEngineering, Metal Formed Products, and Bicycles— the original trinity that built TII’s name. But let’s not forget, TII’s recent growth binge is powered byCG Power (58% owned)— the country’s motor and transformer behemoth. It’s also burning cash onEVs, optic lenses, and TMT bars, making TII look like Tesla’s Indian cousin who still rides a Hercules.

3.Business Model – WTF Do They Even Do?

TII doesn’t just “make stuff” — itengineers ecosystems. Or at least, that’s what the corporate presentation would say. Let’s decode it:

• Engineering Division (28%)– Precision steel tubes, cold-rolled strips, and electric resistance welded tubes. Basically, the skeleton of India’s industrial body. They even manufacture large-diameter welded tubes that used to be imported. Think of them as the Make-in-India version of industrial sushi rolls — steel wrapped with perfection.
• Industrial Systems (31%)– Electric motors, alternators, drives, and traction systems for power, oil, gas, railways, and cement. It’s like CG Power’s muscular extension, now flexing its dominance across the industrial spectrum.
• Metal Formed Products (~9%)– Automotive chains, car door frames, fine blanking components. If your car door closes smoothly, you probably owe TII a thank you.
• Mobility (4%)– The nostalgic Hercules and BSA bicycles are still pedaling around, giving TII a 25% market share in retail cycles. Montra and performance bikes are the new kids in this garage.
• Gears (3%)– ThroughShanthi Gears (70% owned), it supplies gearboxes and motors to heavy industries. Basically, gears turning profits.
• Power Systems (15%)– The CG Power juggernaut. Enough said.
• Others (10%)– The most exciting junk drawer: electric 3Ws, electric tractors, electric trucks, and evenmedical devicesvia Lotus Surgical. Capex of ₹470 crore in FY25 in EVs means TII is betting big on wheels that hum instead of roar.
• New Ventures– APIs and CDMO (pharma manufacturing), and a 75% stake inMoshine Electronicsfor camera modules. From tractors to TikTok hardware, they’re covering it all.

So yes — the company makes tubes, motors, gears, bicycles, medicines, and possibly your next selfie camera. Imagine explaining that at a family wedding.

4.Financials Overview