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Tembo Global Industries Ltd (TEMBO)

Consumer Services · Retail · NSE · Updated 29 September 2026
By StockFin Research TeamAI-Assisted AnalysisSource: BSE/NSE Filings

🎯 Key Takeaways

  • Tembo Global Industries is transitioning from a traditional retail and engineering services model toward high-growth, government-backed segments including defence manufacturing, solar energy, and UAV technology, supported by a robust order book and strategic CAPEX. The company is in a phase of targeted expansion with visible revenue visibility from new verticals and capacity additions, though execution risks remain around capital deployment and margin sustainability.
  • Revenue declined 12.6% QoQ to ₹302 in Q1FY27.
  • ⚠️ 1) Execution risk in deploying CAPEX across multiple new verticals (defence, solar, UAV) without guaranteed timelines or regulatory clearances. 2) Mar
ROE
22.6%
ROCE
20.7%
Debt/Equity
0.85
Promoter
37.7%
✨ Ask AI About TEMBO📊 Interactive Charts

📖 The Story

Tembo Global Industries is transitioning from a traditional retail and engineering services model toward high-growth, government-backed segments including defence manufacturing, solar energy, and UAV technology, supported by a robust order book and strategic CAPEX. The company is in a phase of targeted expansion with visible revenue visibility from new verticals and capacity additions, though execution risks remain around capital deployment and margin sustainability.

📰 What's Happening

In Q1 FY27, Tembo reported a 21.9% YoY revenue increase to ₹302 crores and a 55.3% YoY PAT rise to ₹31 crores, driven by growth in engineering and EPC segments. The order book stands at ₹1,500 crores with a ₹2,400 crores pipeline, underpinning a FY27 revenue guidance of ₹1,600 crores. Management highlighted operational solar projects (4 units), a newly acquired defence manufacturing licence, and plans to scale a 100,000 TPA plant at Vasai to achieve ₹700 crores in peak revenue. Additionally, a joint venture for UAVs is expected to contribute ₹100 crores in first-year revenue. A proposed preferential issue of 2 crore convertible warrants at ₹57 per warrant aims to raise ₹114 crores, primarily to fund subsidiaries and working capital, with shares locked in for 90 days post-allotment.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue245251346302
Operating Profit31403746
OPM %12.7%16.1%10.7%15.3%
Net Profit22263031
EPS₹14.18₹16.35₹18.15₹1.59

Revenue trends show volatility but an upward trajectory, with Q1 FY27 revenue at ₹302 crores up from ₹251 crores in September 2025, though slightly down from ₹346 crores in March 2026. Despite this, gross profit margin improved to 32.1% and EBITDA margin to 16.3%, reflecting operational efficiency gains. PAT growth outpaced revenue growth, indicating cost and scale benefits. However, working capital remains elevated due to extended credit periods in EPC projects, and the recent convertible warrant issuance may increase dilution and capital base for expansion.

🔮 Management Outlook & What's Next

Management projects FY27 revenue of ₹1,600 crores, with ₹700 crores expected from the new Vasai plant at peak utilization. Solar projects are estimated to contribute ₹80 crores, while the defence manufacturing unit under MoU will require INR 1,000 crores CAPEX. The UAV JV is expected to generate ₹100 crores in first-year revenue. These initiatives reflect a strategic pivot toward high-margin, government-supported sectors with strong order visibility and long-term growth potential.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital15251921
Reserves19060434230
Borrowings258228386266
Total Liabilities5743661,306696
Fixed Assets262111732
Investments22314
Total Assets5743661,306696

The balance sheet shows a strengthening equity base and controlled leverage, with debt-to-equity at 41.4% in Q1 FY27. Total assets grew to ₹1,306 crores as of March 2026, up from ₹696 crores in the prior period, driven by capital investments. While borrowings remain elevated, the company is raising fresh capital via convertible warrants to fund growth without immediate equity dilution, and cash flow from financing activities remains positive, supporting strategic expansion.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2025
Operating-77
Investing-207
Financing+287
Net Cash Flow+2

👥 Shareholding Pattern

CategoryQ3FY26Q4FY26Q1FY27
Promoters36.4%36.4%37.7%
FII8.6%8.6%8.5%
DII0.2%0.9%1.6%
Public40.5%40.0%40.4%
# Shareholders16,10617,46917,962

Promoter holding has slightly increased from 36.38% in Q4FY26 to 37.74% in Q1FY27, suggesting confidence in long-term prospects. FII ownership remains stable at 8.48%, while DII participation has modestly risen from 0.22% to 1.65%, indicating growing institutional interest. The rising number of shareholders (17,962 in Q1FY27) reflects retail engagement, though promoter dilution may occur post-warrant issuance.

⚖️ Peer Comparison — Retail

CompanyMCap (₹ Cr)P/EROCEROED/E
DMART2.47 L Cr80.817.2%—0.04
TRENT1.40 L Cr57.033.9%—0.07
VMM47,09152.721.4%—0.00
CARTRADE13,81459.412.9%—0.00
FIRSTCRY9,646—0.2%—0.12
ABLBL9,43153.326.4%—0.59
MEDPLUS7,80037.019.8%—0.00
AVL7,72455.522.4%—0.48
V2RETAIL7,7235.928.7%—0.28
EMIL7,41436.017.1%—0.55

🔗 Peer Stock Analyses

DMARTTRENTVMMCARTRADEFIRSTCRY

⚠️ Risk Factors

1) Execution risk in deploying CAPEX across multiple new verticals (defence, solar, UAV) without guaranteed timelines or regulatory clearances. 2) Margin pressure from working capital demands in EPC projects and potential cost overruns in new plant commissioning. 3) Dilution from the proposed convertible warrant issue, which could pressure existing shareholders if warrants are converted. 4) Dependence on government-backed contracts for defence and solar segments, which may be subject to policy or procurement delays.

📋 Recent Filings

🧠 Analyst's Read

Tembo Global is repositioning itself around high-growth, policy-driven sectors with strong order visibility, but the transition involves capital intensity and execution complexity. Investors should monitor the ramp-up of new verticals, margin sustainability, and the effective use of raised capital. The company’s financial health is improving, but the strategic shift introduces operational and execution risks that require careful oversight.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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