Chennai: Murugappa Group’s engineering flagship, Tube Investments of India (TII), which operates the group’s electric mobility business through its subsidiary, TI Clean Mobility (TICM), expects its electric truck business to reach EBITDA break-even by Q4 FY27, while two other businesses are expected to break even by Q4 FY28. The fourth business is still at a relatively nascent stage.
The management reiterated its target of generating Rs 1,000 crore in revenue from its EV business by 2030. In H1 FY27, the business’s combined revenue more than doubled to Rs 715 crore from Rs 313 crore in the year-ago period. In Q2, TI invested Rs 250 crore in its EV business through compulsorily convertible preference shares (CCPS). TICM has cash reserves of around Rs 315 crore, which the management said would be sufficient to meet its funding requirements for FY27.
“We need to achieve scale in each business, although the required scale will differ from one segment to another,” the management of TII said during the Q2 FY27 earnings call. At the organisational level, TICM’s first objective is to achieve EBITDA break-even, followed by profitability at the net profit level. Amid intensifying competition and rising input costs, the company will focus on five key priorities to drive growth and improve profitability in its electric mobility business. The company is considering selective price increases and better realisations on a deal-by-deal basis, while stepping up efforts to reduce component costs. However, the company needs to strengthen its position in electric three-wheelers, where its market share in both passenger and cargo vehicles remains in the low single digits. The need for additional funding in FY28 will be decided later. You Can Also Check: Gold Rate in Chennai | Silver Rate in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai | Chennai AQI | Weather in Chennai | Petrol Price in Chennai | Diesel Price in Chennai | CNG Price in Chennai | LPG Price in Chennai