1. Opening Hook
When the GST cuts made ICE vehicles cool again, Tube Investments didn’t flinch. Because in Chennai, when life gives you combustion, you forge electric dreams. The Murugappa flagship entered Q2FY26 with a swagger — the steel tubes gleamed, the chains clinked, and the EV business revved just loud enough to make analysts sit straighter. The management, led by the ever-calm Vellayan Subbiah, sounded like engineers discussing poetry — PBITs, ROICs, and market shares rolled off their tongues smoother than factory-fresh bearings. But beneath the precision was quiet ambition: 50% market share in e-trucks, a new medical vertical, and ₹600 crore waiting to be deployed in growth. Read on — this one’s metal, mobility, and Murugappa magic. ⚙️
2. At a Glance
- Standalone Revenue ₹2,119 cr, up 2.6% YoY:Growth slower than a cycle uphill.
- PBT ₹250 cr, up 11.5% YoY:Margins flexing quietly.
- ROIC 44%:Still royalty in capital efficiency.
- Free Cash Flow ₹183 cr:Cash discipline sharper than their metal tubes.
- Consolidated Revenue ₹5,523 cr, up 12% YoY:CG Power powered the group again.
- CG Power PBT ₹388 cr (vs ₹294 cr):The electrical sibling’s shockingly strong show.
- Shanthi Gears PBT ₹29 cr (vs ₹34 cr):Slightly slipping gears, literally.
- EV Volumes:2,082 three-wheelers, 44 trucks, 167 SCVs, 100 e-tractors — early but electric.
- Capex Plan:₹300–400 cr for core business, ₹300–400 cr for TI Medical & 3Xper, ₹200–300 cr for M&A.
3. Management’s Key Commentary
“Revenue ₹2,119 crore, PBT ₹250 crore, ROIC 44%.”(Translation: Even our spreadsheets have six-pack abs.)
“Engineering grew 10% by volume; utilization at 80–85%.”(They’re running hotter than the metal they forge.)
“Industrial chains hold ~50% market share in a ₹900 crore market.”(That’s not a business — that’s a monopoly with manners 😏.)
“GST cut boosted demand post-September, festival season very strong.”(Yes, India’s economic indicators are still Diwali sales.)
“ICE vehicles cheaper post-GST, EVs hit slightly — mainly 3-wheelers.”(So the clean mobility dream met real-world pricing.)
“Three-wheeler EV sales slow, new variant fixes issues, Q4 recovery expected.”(They’re debugging wheels like software updates.)
“50% market share in electric trucks — pan-India.”(And they said Chennai doesn’t do loud flexes.)
“Medical business targets 25% CAGR; new verticals incoming.”(Murugappa wants to heal India — literally.)
“Capex ₹600–800 crore next year; no debt, ₹150 crore cash buffer.”
(They’re the rare Indian conglomerate where “growth” doesn’t mean “borrowing.”)
4. Numbers Decoded
| Segment / Metric | Q2 FY26 (₹ Cr) | Q2 FY25 (₹ Cr) | YoY % | Commentary |
|---|---|---|---|---|
| Standalone Revenue | 2,119 | 2,065 | +2.6% | Flat but steady — festive tailwinds ahead. |
| Standalone PBT | 250 | 225 | +11.5% | Margin muscle intact. |
| Engineering Revenue | 1,382 | 1,323 | +4.5% | Pipes still pumping profits. |
| Metal Formed Products | 408 | 404 | +1% | Auto chains steady, exports soft. |
| Mobility (Cycles) | 194 | 168 | +15% | Fitness and e-bikes finally moving pedals. |
| Consolidated Revenue | 5,523 | 4,925 | +12% | Group-wide steel spine. |
| CG Power Revenue | 2,923 | 2,413 | +21% | The true watt behind TII’s shine. |
| Shanthi Gears Revenue | 132 | 155 | -15% | Slipped a few teeth. |
| EV Volumes (Units) | 2,393 total | ~2,200 est. | +8% | Early innings, but 50% share in e-trucks. |
| Capex Plan FY27 | ₹600–₹800 cr | – | – | Medical + EV + 3Xper expansion fuel. |
Short take: Margins strong, growth measured, and the EV engine humming quietly beneath the hood.
5. Analyst Questions
Siddhant (Goodwill):“Metal Formed Products flat — market share loss?”Ahuja:“Nope, market share intact. Industrial chains at 50% share. Exports 15% of total.”
Joseph (IIFL):“GST cuts boost demand?”Ahuja:“Absolutely. Post-September demand is festive — and finally real.”
Joseph (again):“EV impact post-GST cut?”Jalaj:“3-wheelers hit, others fine. Total cost of ownership still wins — eventually.”
Salil (Marcellus):“EV volumes growing too slow?”Jalaj:“Competition up, but we hold 50% e-truck share. Cargo variant
