1. At a Glance
Tembo Global Industries Ltd is what happens when a boring-sounding fabrication company decides it doesn’t want to remain boring anymore. Founded in 2010, now sitting at a market cap of roughly ₹879 crore, trading around ₹568, and casually throwing out a ROCE of 31% and ROE of 37% like it’s no big deal.
In Q3 FY26 alone, Tembo clocked revenue of ₹250.7 crore and PAT of ₹26 crore. That’s YoY revenue growth of ~49.5% and profit growth of ~55%. Nine-month FY26 revenue stands at ₹744.2 crore with PAT of ₹68.2 crore. Order book? A solid ₹1,484 crore, which is larger than the company’s current market cap. Yes, that’s not a typo.
Stock P/E is around 11x, while the industry P/E hovers near 20x. Debt-to-equity is about 1.06, which is not exactly saintly, but interest coverage of 6.3x suggests lenders are still sleeping peacefully. Promoter holding has slipped to 36.4%, which is the one line in the report that makes you raise an eyebrow and sip your chai slowly.
This is not a glamour stock. This is pipes, clamps, anchors, rods, and metal things you only notice when they fail. And yet, the numbers are screaming for attention.
So the question is: is this a hidden industrial compounder… or just a very well-run fabrication shop enjoying a temporary boom?
2. Introduction
Tembo Global Industries is a classic example of a company that most investors ignore because it doesn’t sound exciting at dinner parties. Nobody says, “Bro, I’m bullish on anti-vibration spring hangers.” And yet, those same hangers are quietly holding up billion-dollar infrastructure projects.
The company operates at the unsexy but absolutely critical intersection of fire safety systems, HVAC, MEP installations, oil & gas piping, and industrial infrastructure. Basically, if a refinery, metro station, data centre, or factory doesn’t collapse, Tembo probably supplied something inside it.
Over the last five years, revenue has grown at ~57% CAGR, while profits have grown at ~84% CAGR. That’s not normal. That’s not “steady industrial growth.” That’s “something structurally changed” growth.
The shift is visible in margins too. Operating margin has moved from low single digits earlier to ~13% TTM. EPS has jumped from ₹5.21 in FY23 to ₹51.13 TTM. Yes, nearly 10x in two years. Calmly.
But rapid growth brings new questions. Debt has ballooned to ₹266 crore. Working capital swings are real. Promoters have been trimming stake. And Tembo is suddenly talking about defence manufacturing, Saudi JVs, US subsidiaries, and ₹700 crore revenue targets from a new Vasai plant.
Is Tembo scaling responsibly, or is it trying to do too many things too fast?
Let’s open the ducts and
see what’s inside.
3. Business Model – WTF Do They Even Do?
Tembo Global manufactures and fabricates metal products that hold, support, clamp, hang, anchor, and stabilise pipes and equipment. In simple words: Tembo makes sure pipes don’t fall on your head.
Their product portfolio covers:
- Fire fighting systems (sprinkler hangers, anchors, threaded rods)
- MEP installations
- HVAC supports and vibration control
- Oil & gas pipe clamps and rollers
- Drainage systems
- Anti-vibration solutions
- Fasteners and anchoring products
These are not optional accessories. These are mandatory components in industrial and commercial projects. No EPC contractor can skip them, no matter how much they want to cut costs.
Tembo also does fabrication and installation of ductile iron pipes, HDB pipes, MS plates, and fittings. Add certifications from UL and FM (USA), and suddenly this is not just a local supplier—it’s globally acceptable kit.
Then comes the plot twist: textiles. Around 37% of FY23 revenue came from trading and exporting textiles like yarn, fabric, bedsheets, etc., across 20+ countries. Why is a pipe support company selling bedsheets? Because Indian entrepreneurs never like to put all their eggs in one basket… or even the same warehouse.
Engineering contributes ~63% of revenue, and that’s where margins and future growth are coming from. Textiles look more like a cash-flow balancing act than the core long-term story.
Clients include Saudi Aramco, Tata Projects, Shapoorji Pallonji, Godrej, Sterling & Wilson, and others who don’t usually work with amateurs.
So yes, the business is boring. But boring businesses with pricing power and mandatory demand often make the most money.
4. Financials Overview
First, let’s lock the result type.
Quarterly Comparison Table (₹ Crore unless stated)
| Metric | Latest Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 250.7 | 168.0 | 245.0 | ~49.5% | ~2.3% |
| EBITDA | 43.0 | 30.0 | 32.0 | ~43% | ~34% |
| PAT | 26.0 | 19.0 | 22.0 | ~37% | ~18% |
| EPS (₹) | 16.37 | 14.69 | 12.98 | ~11% | ~26% |
Annualised EPS (Q3 rule):
Average
