Tempsens Instruments reported a 33.4% year-over-year increase in revenue from operations for Q1 FY27, reaching ₹1,187.07 million, according to investor slides presented on September 17, 2026.
The company's EBITDA margin contracted 327 basis points to 22.00% from 25.27% in the prior-year quarter, reflecting continued investment spending ahead of multiple production expansions through FY28 and beyond.
Revenue from operations grew at a 27.23% compound annual rate between FY24 and FY26, rising from ₹2,748.10 million to ₹4,448.78 million. FY26 EBITDA totaled ₹1,131.73 million — a 36.07% CAGR — with an operating margin of 24.83%. Adjusted profit after tax grew at a 35.27% CAGR to ₹748.69 million in FY26, at a 16.42% margin. Return on capital employed stood at 21.61% in FY26, down from 23.08% the prior year, while the debt-to-EBITDA ratio improved to 0.69x from 0.74x.
Segment performance in Q1 was mixed. Temperature sensing solutions grew 42% year-over-year to ₹603 million, accounting for 44.59% of FY26 revenue. Electrical heating solutions surged 149% to ₹250 million, though the segment represented only 20.70% of FY26 revenue after previously dominating at 60.58% in FY24. Specialized cables declined 9% to ₹325 million due to export order timing, and international sales climbed 78% year-over-year to ₹398 million, lifting export share to 34% of product revenue from 25% in Q1 FY26.
Tempsens holds 10.5% of India's overall temperature sensor market and 21.3% of the non-contact sensor segment, noting it is the only Indian manufacturer of non-contact temperature sensors. The global temperature sensor market is projected to expand from $4.3 billion in calendar year 2025 to $6.3 billion by 2030, while the Indian market is expected to grow from ₹18.8 billion to ₹28.8 billion over the same period. The addressable market for the company's EDGE Series pyrometers is estimated at roughly ₹60,000 crore, of which Tempsens currently addresses about 1%.
The company plans to commission several capacity expansions across FY27 and FY28, including dispatches for the EDGE series pyrometers in Q3 FY27, explosion-proof certification for medium-voltage heaters in Q4 FY27, and new plants for MV heaters, specialized cables, and a brownfield temperature sensing expansion through Q3 FY28. Management targeted full capacity utilization on new projects by FY29 or FY30.
Tempsens raised ₹950 million through its IPO, allocating ₹550 million toward debt repayment. Balance sheet totals at FY26 year-end showed assets of ₹6,610.52 million and equity of ₹5,254.75 million.
Cross-sale revenue reached ₹2,668.14 million in FY26, representing 59.97% of total revenue and growing at a 29.80% CAGR. The number of customers expanded from over 2,600 in FY24–25 to more than 3,800, and concentration among the top 10 customers fell to 18.59% of FY26 revenue from 24.74% in FY24. The company operates 15 manufacturing units, including five global facilities, and holds 83 R&D employees, 12 granted patents in India, and 39 word mark registrations globally.
Vinay Rathi, managing director, said the company "measures, heats, and connects" to create a thermal loop for customers, and noted that cross-sale revenue of nearly ₹267 crore grew over 30% from the prior year. Aryan Rathi, head of global sales, cited four tailwinds: electrification of process heat, alternative energy growth, China Plus One dynamics, and continued investment in oil and gas heating.
Shares last traded at $558, up 3.23% from $540.55, approximately 12% below the 52-week high of $634.85.
