The Murugappa Group powerhouse, Tube Investments of India Limited (TII), has just dropped its audited financial results for the full year ending March 31, 2026. While the headline numbers look like a victory lap—with consolidated revenue scaling past ₹22,800 Crore—the real story lies in the bloodbath occurring in the “New Age” EV businesses and the strategic pivot toward semiconductors.
1. At a Glance
Tube Investments is no longer just a “bicycle and tube” company. It has evolved into a massive industrial venture fund, using the cash flows from its legacy engineering business to bet on everything from Electric Tractors to Semiconductor OSAT facilities.
In the latest quarter (Q4 FY26), the company reported a massive 81.7% surge in quarterly net profit, reaching ₹234 Crore on a consolidated basis. However, don’t let that single number blind you. The underlying “TI-2” (New Ventures) segment is burning cash at an alarming rate. The Electric Vehicle (TICMPL) division alone wiped out ₹164 Crore in a single quarter (Q3) and continues to be a drag on the overall bottom line.
The company is currently trading at a Stock P/E of 82.1, which is nearly three times the industry average of 27.0. Investors are clearly pricing in a “miracle” from their semiconductor and EV forays, but with working capital days nearly doubling from 33 to 67 days, the efficiency of the core engine is showing signs of friction.
The Red Flag: While the core engineering business is funding the expansion, the export market is hitting a wall. Management has explicitly admitted that Section 232 duties in the US (50% effective duty) and weak demand in Europe are stifling the growth they once anticipated.
Will the “TI-1” core (Engineering) be able to sustain the mounting losses of the “TI-2” bets?
2. Introduction
Tube Investments of India Ltd (TII) represents the industrial heart of the ₹90,178 Crore Murugappa Group. Headquartered in Chennai, TII is an apex predator in the Indian manufacturing space, dominating markets ranging from Cold Drawn Welded (CDW) tubes to high-end bicycle brands like BSA and Hercules.
The company operates through a complex web of subsidiaries, most notably holding a 56% stake in CG Power and a 70% stake in Shanthi Gears. These aren’t just investments; they are the primary drivers of TII’s consolidated performance.
Currently, TII is in the middle of a high-stakes transformation. It is moving away from being a pure-play auto-component supplier to becoming an EV-first and Semiconductor-focused conglomerate. In July 2025, they successfully raised ₹3,000 Crore via QIP specifically to fund an ambitious ₹7,584 Crore Semiconductor OSAT facility in Gujarat.
3. Business Model – WTF Do They Even Do?
If you think TII just makes cycles, you are stuck in 1995. Their business is a three-headed monster:
- The Cash Cow (TI-1): This includes the Engineering and Metal Formed Products divisions. They make the tubes and chains that keep every Indian car and bike running. They are the market leaders in India for transmission chains.
- The Turnaround Titans: CG Power and Shanthi Gears. TII bought CG Power out of distress in 2020 and
