Rs 1,350 Crore Order Book: Solar & defence company’s stock hit upper circuit after announcing Q1FY26 results & key updates

Tembo Global Industries (NSE: TEMBO) commenced FY26 with robust performance, achieving a remarkable 93 per cent year-on-year revenue growth, reaching Rs 248 crore in Q1FY26. This impressive growth was fuelled by significant advancements in both its Engineering and Textiles divisions, with a strategic focus on the margin-enhancing Engineering segment, which saw its EBIT margin expand by 1,236 basis points year-on-year to 24.9 per cent. To bolster its engineering capabilities, Tembo inaugurated Phase I of its new manufacturing facility at the quarter's end, quadrupling capacity and enhancing operational efficiency to meet surging product demand.

Advertisement:

25% OFF on DSIJ's multibagger Pick

The company provided updates on key projects, noting the Maldives jetty project is nearing completion and is slated for handover by the end of Q2 FY26. For its Solar Special Purpose Vehicles (SPVs), Tembo has successfully acquired land for 10 out of 30 sites, positioning itself for future renewable energy developments. Land acquisition for the Defence Project is ongoing, with plans to discuss subsidy claims with the Maharashtra government soon. On the financing front, loan approvals totalling Rs 471 crore and Rs 138 crore have been secured from financial institutions, with additional SPV loans under review. Tembo is actively negotiating terms with banks, aiming to finalise these arrangements by August 31, 2025.

Tembo has identified an Rs 600 crore EPC-designated project and secured an order worth Rs 24 crore in the June quarter, with an additional Rs 50 crore currently under negotiation, confidently aiming for a major share and completion by March 31, 2026. The company has also submitted bids for various projects, including international opportunities, totalling approximately Rs 800 crore, reflecting a strategy to diversify its portfolio and enhance market presence. Tembo remains aggressively focused on the precision engineering sector, catering to industries with sustained demand for high-quality engineered products. Its diverse portfolio of 288 products serves sectors like construction, aerospace, chemical processing, automotive, solar power and defence, which offer significant growth potential and natural forward integration opportunities.

About the Company

Incorporated in 2010, Tembo Global Industries is a key player in the industrial sector, manufacturing and assembling metal components for various systems like pipe support, fasteners, HVAC and anti-vibration. They also trade complementary metal products. Specialising in ductile pipes, HDB pipes and MS plates, their products are certified by UL Inc. (USA) and FM Approval (USA) for fire sprinkler systems. A 2 Star Export House, Tembo expanded into EPC contracting in 2023 and diversified into defence products and solar power in 2024.

On Wednesday, shares of Tembo Global Industries Ltd hit a 5 per cent upper circuit to Rs 547.40 per share from its previous closing of Rs 521.35 per share. The company has a market cap of over Rs 800 crore and as of June 30, 2025, the order book stands at Rs 1,350 crore with an L1 order bidding pipeline worth Rs 2,000 crore. The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 200 per share.

Disclaimer: The article is for informational purposes only and not investment advice.