TII Q1 FY27: PAT dips 3% YoY to ₹294 Cr on EV/chip losses despite 17% revenue growth

Tube Investments of India reported consolidated revenue of ₹6,215 Cr for Q1 FY27 (quarter ended June 30, 2026), up 17.1% YoY from ₹5,309 Cr, but PAT fell 3.1% YoY to ₹294 Cr from ₹303 Cr. Revenue was essentially flat QoQ against ₹6,215 Cr in Q4 FY26, while PAT rose 25.6% QoQ from ₹234 Cr — a low-base sequential recovery rather than a fresh trend, so the YoY comparison is the one that matters. Standalone (secondary basis): revenue ₹2,366 Cr +17.9% YoY, PAT ₹159 Cr -5.6% YoY, EPS ₹8.19 versus ₹8.69. Neither period carried exceptional items on either basis, so no adjustment is needed — the decline is on a like-for-like basis. The miss is below the line, not on operations: consolidated PBT actually rose 2.6% YoY to ₹461 Cr from ₹449 Cr. The effective tax rate climbed to 36.2% from 32.5% YoY, pulling net profit margin down to 4.6% from 5.6% and operating margin to roughly 8.8% from roughly 10.3%. Within segments, Power Systems (CG Power's core power-equipment business) profit jumped 44.5% YoY to ₹322 Cr, and CG Power's overall PBT — spanning its Power Systems, Industrial Systems and Semiconductor units — grew about 16% YoY to ₹423 Cr per the company's press release. That strength was offset by widening losses at Electric Vehicles (₹147 Cr loss versus ₹136 Cr YoY) and Semiconductors (₹50 Cr loss versus ₹9 Cr YoY), plus a weaker Gears and Gear Products segment (₹14 Cr versus ₹31 Cr YoY) — Shanthi Gears' own revenue (₹115 Cr vs ₹135 Cr) and PBT (₹14 Cr vs ₹31 Cr) both fell YoY per the release. Management's Q4 FY26 guidance flagged "strong volume growth despite short-term margin pressures" for the engineering business — both played out almost exactly as described, so this quarter reads as "met" against that framing rather than a beat or miss. Medical devices revenue grew 23.3% YoY to ₹58.6 Cr, ahead of the 15-20% YoY growth range management guided for FY27. The EV business, which management said would scale after resolving supply issues, instead posted a wider loss — that initiative is running behind plan. No reliable street/consensus estimate specific to this quarter could be sourced, so vsStreet is marked unknown. During the quarter TII completed its planned acquisition of 76.24% of Orange Koi Private Limited for ₹35 Cr (a medical/defence precision-parts manufacturer, consolidated from April 6, 2026, accounted on provisional fair values) and put a further ₹25 Cr into 3xper Innoventure's preference shares; separately, one of the group's subsidiaries saw its auditors resign during the quarter per company disclosures, unrelated to this result's numbers. Going into Q2 FY27, the markers to watch are whether the EV and semiconductor losses narrow, whether the tax rate normalizes back toward last year's ~32-33% (which alone would restore several points of margin), and whether Power Systems' growth continues to offset weakness elsewhere in the portfolio.