Murugappa Group’s engineering flagship, Tube Investments of India (TII), has outlined an ambitious profitability roadmap for its electric vehicle operations. The company expects three of its four EV businesses to achieve EBITDA break-even by the fourth quarter of FY28, with electric heavy trucks leading the transition by Q4 FY27. Operating through subsidiary TI Clean Mobility (TICM), the Murugappa EV Business is expanding across trucks, small commercial vehicles, three-wheelers and tractors. Stronger sales and growing market shares offer strong momentum, but rising battery costs, currency depreciation and intense competition remain significant challenges as the group works towards sustainable long-term financial performance.
Quick Answer: TII expects its electric truck business to reach EBITDA break-even by Q4 FY27 and two more EV segments by Q4 FY28. Its fourth segment remains at an early stage.
Why Break-Even Depends on Scale
During TII’s Q2 FY27 earnings call, management said each EV segment needs sufficient scale, although the required volumes differ. The priority is EBITDA break-even, followed by net profitability.
Higher battery cell prices, commodity inflation and rupee depreciation have increased bill-of-materials (BOM) costs across all four businesses. Pricing, procurement and efficiency are crucial.
Electric Truck Sales Lead the Charge
The Murugappa EV Business reported quarter-on-quarter volume growth across its portfolio:
- Electric trucks: 311 units in Q2 FY27, up from 86 in Q1.
- Electric three-wheelers: 2,242 units, compared with 1,924.
- Electric small commercial vehicles: 483 units, up from 347.
- Electric tractors: 50 units, compared with 22.
TICM estimates its market share at approximately 25–26% in both electric trucks and small commercial vehicles. Electric tractors accounted for around 25% of registrations in H1 FY27, according to VAHAN data cited by management.
However, its passenger and cargo electric three-wheelers still hold low-single-digit market shares, highlighting growth potential. Management has not explicitly identified which two additional segments will achieve break-even by FY28.
Five Priorities to Improve EV Profitability
To strengthen margins, TICM is pursuing five priorities:
- Lower component costs through sourcing efficiencies and localisation.
- Expand after-sales support to improve customer confidence.
- Target profitable applications rather than chasing volume alone.
- Launch market-focused products suited to customer requirements.
- Improve realisations through selective price increases and negotiated contracts.
Longer-term supplier agreements could cushion battery and commodity price fluctuations.
Revenue Doubles as Funding Supports Expansion
The Murugappa EV business generated ₹715 crore in combined revenue during H1 FY27, compared with ₹313 crore a year earlier, approximately 128% growth.
TII also infused ₹250 crore into TICM during Q2 FY27 through compulsorily convertible preference shares. With approximately ₹315 crore in cash reserves, management expects funding to cover FY27 requirements before assessing FY28 needs.
The group reiterated a stated ₹1,000-crore EV revenue ambition for 2030, although that target warrants clarification given current half-year revenue.
What Comes Next?
For the Murugappa EV Business, rising vehicle deliveries are encouraging, but converting scale into sustainable margins remains the real test. The truck unit’s FY27 milestone will indicate whether TICM’s wider FY28 break-even roadmap is achievable.
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