Metal Stock Jumps 4% After It Secures License for Ammunition Manufacturing

Synopsis: Metal stock surged over 4% after its subsidiary received a government licence to manufacture ammunition, marking a significant milestone and is expected to strengthen its presence in the defence and security manufacturing sector.

The shares of this company are manufacturer and fabricator of metal products used in Pipe Support Systems, Fasteners, Anchors, HVAC, Anti-Vibration Systems and Equipment for industrial, commercial are in the spotlight after it rose over 4% in today’s market session following being granted a license by the Ministry of Home Affairs, Government of India.

With a market capitalisation of Rs. 1,108 cr, the shares of Tembo Global Industries Limited were trading at Rs. 599.05 per share, jumping over 4% in today’s market session, making a high of Rs. 609.95, up from its previous close of Rs. 584.65 per share. 

What’s the News

Tembo Global Industries Limited has informed that its subsidiary, Tembo Classic Engineering Private Limited (formerly Tembo Defence Products Pvt. Ltd.) has been granted a licence by the Ministry of Home Affairs, Government of India, to manufacture ammunition of various calibers. 

The licence authorises the subsidiary to undertake ammunition manufacturing in line with prescribed regulatory frameworks and conditions. This marks a significant milestone for the Tembo Group as it formally enters the defence and security manufacturing segment.

The company stated that the subsidiary is preparing to commence commercial production of arms and ammunition as per the planned schedule. This development is expected to strengthen the group’s presence and growth prospects in the defence sector.

About the company 

Tembo Global Industries Limited is an India-based engineering and manufacturing company engaged in producing metal components, industrial products, and engineering solutions for sectors such as infrastructure, oil & gas, and defence. The company has been expanding its footprint into the defence and security segment through its subsidiaries, focusing on advanced manufacturing and high-value products to drive future growth.

It has over 40 years of management experience, a strong order book of Rs. 1,484 crore, and exports to 30+ countries. The company is also focusing on expanding its capabilities with a new proposed capacity to support future growth. 

It has delivered strong financial growth, with Revenue CAGR of 63.3%, EBITDA CAGR of 86.8%, and PAT CAGR of 115.8% between FY21–FY25. The company also maintains healthy return ratios, with ROCE at 35.0% and ROE at 23.5% in FY25, indicating efficient capital utilisation. 

The company is significantly expanding its manufacturing capacity to 1,00,000 MTPA, with a new facility in Vasai commissioned in January 2026. The project involved a capital expenditure of around Rs. 75 crore, funded through a mix of debt (Rs. 50 crore) and internal/promoter funding, with the factory work now completed.

As part of its growth strategy, the company is also building a strong product pipeline for FY26, including ERW pipes (60,000 MTPA) and strut channels (30,000 MTPA). This expansion is expected to enhance operational efficiency, supported by an in-house R&D facility and a strategically located plant that improves logistics and scalability. 

At peak utilisation, the Vasai facility is estimated to generate revenue potential of around Rs. 700 crore, highlighting the strong monetisation opportunity from this capacity addition. The expansion is aimed at driving economies of scale, improving margins, and strengthening Tembo’s position across domestic and export markets.

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