Murugappa Group company Tube Investments of India reported a 15% year-on-year decline in consolidated profit for the quarter ended June 30, 2026 — the opening quarter of the 2026-27 financial year — even as revenue grew at a double-digit pace. The fall in the bottom line came alongside a contraction in operating margin, with EBITDA remaining broadly unchanged from the year-ago period.

Consolidated profit stood at ₹168.6 crore in the June quarter, compared with ₹198.9 crore in the corresponding quarter of the previous year. Revenue rose 17% to ₹6,215.1 crore from ₹5,309.1 crore a year earlier. The Chennai-headquartered company is one of the listed entities of the diversified Murugappa Group, with operations spanning precision steel tubes, bicycles and metal-formed products, industrial chains and gears, alongside newer verticals in electric mobility.

EBITDA was almost flat at ₹547.8 crore against ₹546.2 crore in the year-ago quarter. As a result, the EBITDA margin narrowed to 8.8% from 10.3% a year earlier. A 17% rise in revenue therefore translated into essentially flat operating profit for the quarter.

Segment performance

Engineering remained one of the largest contributors to the company's segment revenue, with revenue rising to ₹1,566.26 crore in the June quarter from ₹1,298.24 crore in the corresponding quarter last year.

Industrial Systems revenue increased to ₹1,789.54 crore from ₹1,691.54 crore, while Power Systems revenue rose to ₹1,398.24 crore from ₹1,070.14 crore in the year-ago quarter, an increase of roughly 31%.

Metal Formed Products reported revenue of ₹407.79 crore, compared with ₹365.76 crore a year earlier. Mobility revenue increased to ₹250.42 crore from ₹198.71 crore, while Electric Vehicles revenue rose to ₹239.20 crore from ₹135.44 crore — the sharpest percentage increase across the company's segments — under the Montra Electric brand, through which the company sells electric three-wheelers.

Gears and Gear Products revenue stood at ₹115.13 crore against ₹134.70 crore in the corresponding quarter last year, making it one of the few segments to contract. Semiconductor revenue also declined, to ₹94.03 crore from ₹108.49 crore, while Medical revenue rose to ₹58.57 crore from ₹47.53 crore.

Revenue from Others stood at ₹424.66 crore compared with ₹356.87 crore a year earlier, while un-allocable operating income came in at ₹0.98 crore against ₹3.37 crore in the year-ago quarter.

Subsidiary results

CG Power and Industrial Solutions Ltd, a separately listed industrial electricals maker in which Tube Investments holds a 56.29% stake — control of which it acquired in 2020 — reported consolidated revenue of ₹3,281 crore during the quarter, compared with ₹2,878 crore in the corresponding quarter of the previous year. Its profit before tax rose to ₹423 crore from ₹364 crore a year earlier, as per a press release filed at NSE.

Shanthi Gears Ltd, a Coimbatore-based maker of industrial gears and a subsidiary in the Gears business in which Tube Investments holds a 70.46% stake, reported revenue of ₹115 crore against ₹135 crore in the corresponding quarter last year. Its profit before tax declined to ₹14 crore from ₹31 crore.

Share allotment under ESOP 2017

During the quarter ended June 30, 2026, the company said it allotted 15,450 equity shares to employees following the exercise of options granted under its Employees Stock Option Scheme, ESOP 2017.

Total outstanding employee stock options stood at 8,93,861 as of June 30, 2026, compared with 9,09,311 as of March 31, 2026, and 3,53,701 as of June 30, 2025.

Source: CNBC-TV18