TEMBO Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹251 Cr
verified against source
Revenue YoY
49.5%
reported change
EBITDA
₹43 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Tembo Global Industries delivered a strong Q3 FY26 with 251 crore revenue (+49.5% YoY) and 43 crore EBITDA (+41.9% YoY), driven by robust engineering and textile segment performance (52.9% and 44.4% YoY growth respectively). The 1,484 crore order book provides 12-24 month revenue visibility, with a 700+ crore pipeline in advanced negotiations. Key catalysts include the Vasai facility commencement taking installed capacity to ~100,000 MT, defense production targeting Q3 FY27 (125-150 crore FY27 contribution), and solar PPA revenues of 75-90 crore annually plus 110 crore subsidy. However, EBITDA margin contracted ~90bps YoY to 17.2%, reflecting project mix and higher COGS. Working capital remains stable at 80-90 days. Management guided FY27 revenue growth of 35-40% with PAT margins of 10-12%. Key risks include execution on large capex programs (1,000 crore defense, 650 crore solar), potential margin dilution from capital-intensive verticals, and management's deflection on cash flow from operations and ROIC metrics.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets approximately 35-40% revenue growth for FY27 from current levels, supported by strong order book execution and new vertical ramp-up.
- Expected PAT margin of 10-12% for FY27 as the company scales capital-intensive businesses while maintaining operational efficiency.
- First stage defense plant expected to commence commercial production by September-October 2026, contributing ₹125-150 crore for partial year (H2), scaling to ₹300 crore annual potential at full utilization.
- 650 crore solar project (PPA with Maharashtra government) will generate ₹75-90 crore annual revenue with 110 crore subsidy, 5-year payback period.
Risks flagged
- Q3 EBITDA margin contracted ~90bps YoY to 17.2%, attributed to project mix and higher cost of materials. Capital-intensive defense (30-35% EBITDA margin) and solar projects may not fully offset this dilution.
- Analyst explicitly asked about CFO for Q2 and working capital conversion difficulties, but management deflected twice stating they will provide the answer separately. This opacity on cash generation is a concern for capital-intensive growth.
- Analyst asked about realistic ROIC on incremental capital given higher capital intensity from defense and solar capex (total ~1,650 crore). Management deflected, referring to presentation rather than providing specific guidance.
- Previously signaled intent to discontinue textile business by 2027, but management now citing EU-India trade deal opportunities and incoming export inquiries, creating uncertainty about divestiture timeline and capital allocation.
Key quotes
- So we are targeting a growth of around 35 to 40%. From current level. And what sort of margins we looking at? Margins is around uh 10 to 12% fat. Pat is 10 to 12%.
- So I will let you know the basically it's a field manner and there are a lot of new machineries which have been ordered and have been imported. So we have started manufacturing over there and it will get ramped up as discussed in the in the next on a higher side two to three years on a very higher side we would be working on complete capacity and utilization in two to three years.
- In defense, we have completed key regulatory steps including land allotment and obtaining the arms license. These forward strides reflect our commitment to building diversified future ready verticles with steady operations.
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