Metal stock secures defence manufacturing licence from Govt, Shares surge by 5%

Synopsis: The subsidiary of a metal product manufacturer got its  defence licence from the Government of Maharashtra. Also stated it is planning for a substantial investment of Rs. 1,000 crore in the defense space in the coming three years.

A micro cap stock in the business of manufacturing and trade of fabricated metal products saw its stock surge by 5 percent, soon after the company’s subsidiary got  defence licence from the Government of Maharashtra. With a market cap of Rs 940 Cr, Tembo Global Industries Ltd saw its stock hit its upper circuit of Rs 607 which is 5 percent higher than the previous close of Rs 578.

What’s the News?

On Friday, Tembo Global Industries announced on the National Stock Exchange that its subsidiary- Tembo Classic Engineering Private Limited has received Defence Manufacturing Licence from the Government of Maharashtra in order to set up a small arms manufacturing facility in the state.

This has marked a significant milestone in the company’s entry into India’s defence manufacturing sector. The expansion happened via an MoU that was signed with the Maharashtra government at the World Economic Forum 2025 in Davos. 

The company also stated that this will be executed in collaboration with MIDC, Mumbai. It is also important to mention that this project aligns well with the Government of India’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, by supporting employment generation, technology advancement, and strengthening the domestic defence ecosystem.

In the latest conference call the director of the company mentioned that the company has received  100 acres of land from MIDC at Amravati near Nagpur, Maharashtra for the purpose of  manufacturing arms and ammunition. The director also stated that the company is also planning for a substantial investment of Rs. 1,000 crore over the next three years in this space. 

Talking about the core business of metal products, as of the latest quarter, the company has an order book worth Rs 1450 Crore and a capacity to manufacture 18,000 MTPA.

Incorporated in 2010, Tembo Global Industries Ltd’s core business is manufacturing and trading of fabricated metal products. The company’s subsidiary- Tembo Classic Engineering Private Limited, which got the defense licence is an industrial manufacturing and engineering company. 

Headquartered in Navi Mumbai, the parent company operates across industrial and engineering segments, catering to a wide range of infrastructure and manufacturing requirements. The company’s client list includes domestic as well as international marquee companies such as Saudi Aramco, Engineer consultants group SA, AECOM, Lodha, L&T,  TATA group and more.

In the latest quarter Tembo Global Industries saw a YoY revenue growth of 49 percent, going from Rs 164 Cr in Q2FY25 to Rs 245 Cr in Q2FY26, while the QoQ fell by 1.2 percent from Rs 248 Cr in Q1FY26. In the total revenue for H1FY26, 53 percent came from Textiles while the rest 47 percent came from Engineering Products.

The YoY Net Profits growth is at 46 percent, going from Rs 15 Cr in Q2FY25 to Rs 22 Cr in Q2FY26, while the QoQ growth stood at 10 percent from Rs 20 Cr in Q1FY26. 

Moreover, the company has its 3 year profit CAGR at 191 percent, while the 5 year number is at 84 percent. The 3 year sales CAGR is at 62 percent, while the 5 year number is at 57 percent. Tembo Global Industries also witnessed its stock give a compounded return of 64 percent in the last 3 years.

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