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.

The stock went into the print at ₹2,721.9, down 7.2% over the past month of trading.

For context: revenue is at a 6-quarter high.

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.