Tembo Global Industries Limited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Tembo Global Industries Ltd posted revenue of INR 743 Cr, up 69.5% YoY, driven by a 1.9x jump in its Engineering Products segment. EBITDA rose 2.6x YoY to INR 92 Cr with margins expanding 653 bps to 12.3%, reflecting operational improvements and a better product mix. PAT increased 2.6x to INR 51 Cr, lifting margins to 6.9%. Gross profit margin improved sharply to 29.7% from 13.8% last year. The balance sheet saw higher working capital and inventory to support order execution, funded through a mix of debt and equity. The order book remains strong at over INR 1,525 Cr, with L1 orders exceeding INR 1,680 Cr.

2. Strategic Initiatives & Growth Drivers:

Tembo is ramping manufacturing capacity sixfold at its Vasai greenfield plant (from 15,000 to 1,05,000 MTPA), targeting commercial production by Q2FY26 to unlock INR 700 Cr revenue potential. It is diversifying into high-margin ERW pipes, EPC contracts, defence manufacturing, and solar power. The 120 MW solar project with Maharashtra State Power, backed by a 25-year PPA, aims for ~INR 70 Cr revenues by FY27. Overall capex plans total INR 715 Cr, funded via debt and equity.

3. Business Developments:

Tembo inked an MoU with Maharashtra for a defence manufacturing unit, planning INR 1,000 Cr investment over three years. A European partner will provide technology transfer and commit to full production buyback. Leadership has been strengthened with finance and legal experts to support growth. Key projects include World Bank-funded water treatment plants and large EPC contracts in marine and refinery sectors.

4. Market Position & Competitive Advantage:

Tembo benefits from strong technical certifications and integrated manufacturing, ensuring high-quality standards. Its diversified portfolio covers engineering, textiles, solar, and defence, with exports to 27+ countries. Scale, domain expertise, and a robust order book give it an edge in infrastructure and government projects. Backward integration and in-house R&D help lower costs and boost innovation.

5. Investor Implications:

Rapid revenue and earnings growth combined with capacity expansion and entry into defence and renewables signal positive growth potential. A strong order backlog enhances visibility and reduces near-term risks. Execution of new capacity and the defence unit remains key to watch for sustained margin improvement and scaling opportunities.