Tempsens Instruments (India) (TEMPSENS) H1 25/26 earnings summary

Executive summary

• Consolidated H1 FY27 revenue rose 33.7% YoY to ₹2,550.22 million; adjusted PAT increased 17.0% to ₹375.8 million.

• Growth reflected acquired businesses, stronger exports and broad-based demand; EBITDA growth lagged revenue, with H1 margin down to 21.2% from 25.2%.

Financial highlights

• Q2 FY27 revenue rose 34.0% YoY to ₹1,363.15 million; PAT was ₹194.37 million versus ₹161.66 million.

• H1 EBITDA rose 11.9% to ₹549.2 million; PBT was ₹445.13 million and reported PAT was ₹357.03 million.

• Adjusted PAT increased 17.0% to ₹375.8 million; standalone H1 revenue was ₹2,175.34 million and PAT ₹290.73 million.

• Gross material margin was 45.7%; employee expenses rose 40.7% to ₹420.6 million, including ₹11.4 million of ESOP expense.

• H1 operating cash flow increased to ₹490.90 million from ₹108.91 million; operating cash profit before working-capital changes reached ₹507.16 million, up 16.2%.

Outlook and guidance

• FY27 revenue growth is expected to track the blended growth of the prior three years; H1 was ahead of that range, partly due to consolidated entities.

• Management expects profitability to improve as harness-cable and furnace supplies begin and OEM sensor volumes ramp; consolidated margins are expected to return near prior-year levels.

• Five capacity projects are scheduled to commission from Q4 FY27 to Q3 FY28, with ₹500 crore aggregate peak revenue potential at full utilisation; this is not guidance.

• Laboratory-furnace bulk dispatches are expected from Q3 FY27; high-temperature wiring-harness supplies are expected from Q3 FY27, and Mid-Voltage heater certification by Q4 FY27.

• OEM business from fuel cells and emission-control applications could reach 15% of revenue in coming years; fuel-cell orders provide roughly a year of visibility.