# 1. Financial Performance ## A. Key Figures * **Standalone Revenue:** **₹2,007 Cr** (Q1 FY26) (+2.4% YoY) · **Consolidated Revenue:** **₹5,309 Cr** (Q1 FY26) (+16% YoY) * **Standalone PBT:** **₹222 Cr** (+6.7% YoY) · **ROIC:** **39%** (-800 bps YoY) * **Core Profit (pre-exceptional):** **₹449 Cr** (-4.5% YoY) * **Free Cash Flow:** **₹82 Cr** (Q1 FY26) ## B. Revenue Growth * **Growth Distortion:** Reported revenue growth understated due to **pass-through impact of steel price fluctuations**, masking resilient underlying demand and volume trends. * **Recovery Ahead:** Revenue normalization expected as customer pricing catches up with steel cost increases, with full recovery anticipated over the current and next quarter. ## C. Profit Margins * **Margin Pressure:** Margins temporarily suppressed by lag in customer recovery of steel cost hikes; **no expansion observed** despite operational scale. * **Path to Recovery:** Margins expected to rebound to prior levels post-recovery, supported by **higher volumes**, **procurement efficiencies**, and **electronics cost optimization**. * **EBITDA Outlook:** Confidence maintained in delivering **double-digit EBITDA growth** driven by structural cost improvements. ## D. Cash Flow * **Self-Sustaining Model:** Strong free cash flow generation continues despite lower ROIC, with **no funding requirements** even amid intensified strategic investments. --- # 2. Segment & Division Performance ## A. Key Figures * **Engineering Division Revenue:** **₹1,298 Cr** (+2.6% YoY) · **PBIT:** **₹153 Cr** (-2.5% YoY) * **Metal Formed Products Revenue:** **₹366 Cr** (+2.2% YoY) · **PBIT:** **₹37 Cr** (+2.8% YoY) * **Mobility Division Revenue:** **₹198 Cr** (+9.4% YoY) · **PBIT:** **₹7 Cr** (vs. ₹2 Cr prior) * **Other Businesses Revenue:** **₹236 Cr** (↓ YoY) · **PBIT:** **₹17 Cr** * **CG Power Revenue:** **₹2,878 Cr** (+29.2% YoY) · **PBT:** **₹364 Cr** (+8.3% YoY) * **Shanti Gears Revenue:** **₹135 Cr** (↓ YoY) · **PBT:** **₹31 Cr** (+6.9% YoY) ## B. Engineering Division * **Stable Revenue, Margin Pressure:** Engineering division shows modest top-line growth and **10% volume expansion**, but PBIT declined slightly despite operating leverage. * **Railway Project Timeline:** Key railway project progressing with sample approval expected this year; volume ramp-up slated for next fiscal. ## C. Metal Formed Products * **Resilient Performance:** Division delivered slight revenue and margin improvement, with volume growth of **3–4%**, indicating stable demand. ## D. Mobility Division * **Sharp Profit Recovery:** Mobility division posted strong PBIT growth on improved utilization and **seasonal demand rebound** from institutional reopenings. * **Margin Improvement Path:** E-truck segment targeting cost reduction via **indigenization** and scale, aiming to exit near-zero gross margin environment. * **Diversified Growth Strategy:** Long-term outlook supported by expansion into **e-bikes, fitness equipment, and spare parts**. ## E. Associate Companies * **CG Power Outperformance:** Associate CG Power delivered robust revenue growth and margin expansion, contributing meaningfully to group earnings. * **Shanti Gears: Volume Dip, Profit Uptick:** Despite lower revenue, Shanti Gears improved profitability, reflecting operational efficiency gains. --- # 3. Volume & Product Trends ## A. Key Figures * **EV Sales Volume:** **1,791** units in Q1 (45 e-trucks, 1,668 three-wheelers, 44 SCVs, 34 e-tractors) * **QoQ Sales Trend:** e-Trucks **45** (vs. 65), three-wheelers **1,668** (vs. 1,662), SCVs **44** (vs. 27), e-tractors **34** (vs. 17) ## B. EV Sales Volume * **Stable Core, Rising Niche Segments:** Three-wheeler volumes held flat QoQ, while small commercial vehicles and e-tractors showed **strong double-digit growth**, indicating early traction in emerging categories. * **e-Truck Positioning:** Initial e-truck models target the three largest market segments, with 55 Ton tractor trailer prioritized to capture high-utilization fleet demand. ## C. Product Refresh Plans * **Competitiveness Upgrade:** A three-wheeler product refresh launches in Q2 to counter rising competition and reassert leadership, with enhancements aimed at boosting volume and margin resilience. * **Battery Transition Strategy:** Company aligning with industry shift from lead-acid to advanced batteries, maintaining premium positioning while preparing for **higher battery pack subsegments (12–13 kWh)**. ## D. New Model Launches * **Battery Swapping Roadmap:** Battery swapping for trucks targeted by year-end, designed to lower TCO and accelerate fleet adoption. * **Phased e-Truck Rollout:** Product sequencing follows demand intensity—6x4 configuration first, then 4x2, with 28 Ton tipper in later phase. ## E. Subsegment Expansion * **Three-Wheeler Diversification:** Entry into L5N cargo three-wheelers underway, with volume contribution expected from Q2; E-RIC (L3) launch under evaluation for Q3. * **Regional Growth Play:** E-rickshaws identified as strategic opportunity in North and East India, leveraging network expansion to capture incremental volumes and boost dealership revenue. --- # 4. Manufacturing & Capacity ## A. Key Figures * **Dealerships:** **91** current network size · targeting **~125** by year-end ## B. Plant Ramp-Up * **CRSS Nasik Plant:** Commercial production has commenced with majority customer approvals secured; ramp-up underway toward full capacity utilization within 12 months. * **Nasik Facility Validation:** Semi-commercial plant in Nasik undergoing validation batches for first DMF, with environment clearance secured; completion expected within next two quarters. * **Pune Plant Commissioning:** Metal-formed operations in Pune on track for October startup, aligned with Hyundai’s regional volume growth. ## C. Dealer Network Growth * **Expansion Strategy:** Front-end scaling in progress via dealership and manpower growth to support rising volumes. * **Network Target:** Aggressive push to expand footprint from current 91 to approximately 125 outlets by year-end. ## D. Battery Packaging Plant * **Local Assembly Launch:** Battery pack assembly to begin by year-end, enabling cost reduction and contributing to gross margin expansion. * **Manesar Plant Timeline:** Battery packaging facility confirmed to become operational by end of FY2026. --- # 5. Strategic Initiatives ## A. Indigenization & Product Strategy * **Indigenization Roadmap:** Advancing internal indigenization with targeted milestones set for **FY2026–FY2027**, underpinning long-term cost and supply chain resilience. * **Product Differentiation:** TI EV’s ground-up EV designs enable **superior innovation** versus electrified ICE models, driving leadership positioning in spaciousness, power, and comfort across segments. * **Core Business Focus:** Expansion remains contingent on **profitability-accelerating partnerships**, with no new fund allocation planned outside such validated opportunities. ## B. PLI Scheme & Market Access * **PLI Application in Progress:** On track to apply for **PM e-Drive PLI eligibility in Q2**, though customer certification logistics pose implementation challenges. * **Export Readiness:** TI Medical’s **CE certification nearly complete**, unlocking near-term export order potential with only minor country-level clearances pending. ## C. Go-to-Market & Distribution * **Aggressive Market Push:** Management has escalated go-to-market efforts, particularly in high-potential segments, with confidence in near-term traction. * **Direct Model in Trucks:** Truck vertical operates via **direct sales model**, bypassing traditional distribution to maintain control and margins. * **Battery Swapping Critical:** Expansion in fleet truck segment hinges on development of **battery swapping infrastructure** to address range and uptime concerns. ## D. Financial Partnerships & Capital Allocation * **Capital Prioritization:** Deployment sequenced to **core business needs first**, followed by strategic reinvestment in three key growth verticals. * **Financing Tie-Ups:** Strengthening partnerships with **local financial institutions** to boost retail and fleet financing, removing a key sales barrier. --- # 6. Risks & Competition ## A. Key Figures * **US Market Exposure:** **4%** at TI level · **Exports:** **15%** of total business ## B. Distribution Gap * **Disconnection Between Product Quality and Market Share:** Despite strong product acceptance and positive user feedback, market share in electric three-wheelers has not scaled proportionally due to underdeveloped distribution. * **Structural Distribution Disadvantage:** Larger competitors’ entrenched ICE-based networks create a significant barrier, limiting reach and scale for the company’s EV offerings. * **Targeted Expansion Under Review:** Distribution build-out is being assessed on a vertical-specific basis, with accelerated plans under active consideration for three-wheelers. ## C. Rising Competition * **Volume Pressure from Intensifying Rivalry:** Electric three-wheeler segment has seen increased competition, contributing to weak volumes over recent months, prompting strategic recalibration. * **Regulatory Tailwinds Against Unorganized Players:** Tightening safety and compliance norms are expected to benefit organized manufacturers, creating a structural advantage over informal e-rickshaw makers. * **Erosion of First-Mover Advantage:** While TI EV initially entered a nascent space, established players are now entering with superior cost, brand, and distribution—challenging TI’s position despite its **technology and innovation** edge. * **Resource Constraints Amid Catch-Up Phase:** Analysts question sustainability of competitive differentiation given limited scale and focus on closing product gaps rather than leapfrogging. ## D. Export Barriers * **Export Delays Driven by Development Lags and Protectionism:** Past underperformance in exports stemmed from delayed product development for new markets and rising trade barriers in the US and Europe. * **US Tariff Risk Looms:** Standalone export business faces potential headwinds from US tariffs, though specific impact remains unquantified. ## E. Macro Policy Impact * **Subsidy and Policy Uncertainty Weigh on Volumes:** Broader macro challenges, particularly inconsistent policy and subsidy frameworks, have dampened market conditions and demand visibility. * **China’s Anti-Involution Policy May Lift Battery Costs:** The 1 July 2025 policy aims to curb cut-throat pricing, which could reduce downward pressure on lithium-ion battery prices. * **Pass-Through Likely on Battery Cost Increases:** Given lithium-ion batteries are the **largest cost component**, any price rise would likely trigger industry-wide product price hikes, including for the company. --- # 7. Guidance & Outlook ## A. Key Figures * **Capex:** **₹350 Cr** standalone allocation for engineering and metal formed divisions ## B. Operational Breakeven * **Divergent Outlook:** Management remains cautiously optimistic on achieving operational breakeven in e-three-wheeler and HCV segments by year-end, though leadership has expressed skepticism due to **volumes falling short of initial estimates**. ## C. Volume Projections * **EV Volume Recovery Expected:** Electric vehicle division volumes projected to grow this fiscal despite recent quarterly softness, supported by underlying demand trends. * **Export Uncertainty Persists:** Near-term export orders remain stable, but **longer-term visibility is clouded by macro risks**, especially in the **US market**, making the **25% export target aspirational but unconfirmed**. * **Growth Contingent on Macro:** Standalone business growth outlook remains tied to macroeconomic conditions, with no specific guidance provided. ## D. Capex Plan * **Strategic Capital Allocation:** Capex priorities firmly set on **TI Clean Mobility, TI Medical, and CDMO 3Xper**, reflecting long-term pivot toward high-growth, diversified businesses.