Concall AI

Tinna Rubber and Infrastructure Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Tinna Rubber reported strong Q3 FY26 results with significant YoY and QoQ growth in revenue, EBITDA, and PAT, driven by higher tire processing volumes and operational efficiencies. The company secured a substantial work order from Indian Oil and is progressing with its Vision 2028 goals, including capacity expansion and renewable energy initiatives. While some new ventures like PCMB and South Africa are still in early stages, management expressed confidence in achieving its financial targets and long-term vision.

Highlights

Consolidated Revenue increased 13% YoY and 16% QoQ, driven by higher tire processing volumes.
Consolidated EBITDA grew 53% YoY and 57% QoQ, achieving strong margins of 16.3%.
Consolidated PAT grew strongly by 53% YoY and 57% QoQ, with PAT margin at 9.2%.
Secured a 2-year work order from Indian Oil Corporation valued at approximately INR 76 crores.
Tire crushing volumes grew 25% QoQ and 7% on a 9-month basis, supported by post-monsoon demand.
Renewable energy capacity scaled up more than threefold from 1.23 MW to 4.48 MW, targeting 32% of total power consumption by end FY26.

Concerns

PCMB business contribution was slow at 4% of revenue for 9MFY26, with current capacity utilization at 40%.
TP Buildtech's new Kolkata plant is in stabilization phase, operating at a low 15-20% capacity utilization.
South Africa venture is currently losing money, with break-even targeted for Q2 FY27.
Consolidated revenue and PAT remained stable on a 9-month basis due to initial startup costs and profile profits across associates, JVs, and subsidiaries.

Key financials

2 periods

Headline

Consolidated Revenue Growth
13%
YoY +13% QoQ +16%
Consolidated EBITDA Growth
53%
YoY +53% QoQ +57%
Consolidated EBITDA Margin
16.3%
Consolidated PAT Margin
9.2%

9M

Standalone EBITDA Margin
16.8%
Standalone PAT Margin
9.6%

What they filed

Q1 FY27: revenue up 20.0%, net profit up 75.0% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	118	123	129	130	120 +2%	139 +13%	157 +22%	156 +20%
Expenses	98	108	111	109	98	117	129	122
EBITDA	19	15	18	21	21 +11%	22 +47%	28 +56%	34 +62%
Margin	16%	12%	14%	16%	18%	16%	18%	22%
Other income	2	2	3	1	0	0	1	1
Interest	3	3	2	3	2	3	3	3
Depreciation	2	2	3	3	3	3	3	4
Profit before tax	16	11	15	16	16 +0%	17 +55%	23 +53%	28 +75%
Tax rate	22%	25%	23%	25%	28%	25%	28%	25%
Net profit	12	8	12	12	12 +0%	13 +63%	17 +42%	21 +75%
EPS	7.08	4.76	6.82	6.52	6.53	7.11	9.18	11.42

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

PCMB Business
4% Contribution (9M FY26)40% Current Capacity Utilization
Oman Operations
₹25 Cr Revenue (9M FY26)80% Capacity Utilization (9M FY26)
TP Buildtech
₹56 Cr Revenue (Current FY)15% Kolkata Plant Capacity Utilization

Order book

high confidence

Inflow this quarter

₹76 Cr

Execution

2-year work order

The company has received a significant work order from Indian Oil Corporation, contributing to its infrastructure business targets.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹50 Cr
- Deployment of QIP proceeds ₹45 lakh
- Existing works, RCB pyro, Saudi, South Africa
On the capex front, the company has completed capital expenditure of approximately INR79 crores during nine-month period of FY '26. In addition, a further capex of around INR50 crores is planned to be incurred over the balance of FY '26 and in FY '27. Substantial progress has been made in the deployment of QIP proceeds, with only about INR45 odd lakh balance.
Debt Debt disclosed
- Repayment Approximate annual debt repayment ₹10 Cr
Abhay: Approximately INR10 crores a year.
Liquidity Cash ₹5 Cr

Gaurav Sekhri: So, our current cash balance is approximately INR5 crores, and what's the second part of your question?

Guidance & targets

Revenue

Revenue Revenue · FY28 · High confidence INR 1,000 crores

Tinna Rubber continues to progress steadily towards Vision 2028, which is to achieve INR1,000 crores of revenue by FY '28

— Gaurav Sekhri
Annual Revenue Revenue · FY26 · High confidence INR 535-540 crores

And we expect to finish this financial year FY '26 between INR535-INR540 crores, which is in line with the revised guideline we were giving in Q2.

— Gaurav Sekhri
Annual Revenue Revenue · FY27 · Medium confidence over INR 700 crores

but with the assumption of our RCB pyrolysis plant commencing production, etcetera, I believe we will be very close to INR700 crores or over INR700 crores, around INR700 crores FY '27.

— Gaurav Sekhri

Profitability

Profitability Profitability · FY28 · High confidence over 33%

enhancing our profitability by over 33%

— Gaurav Sekhri

Margin

EBITDA Margin Margin · FY28 · High confidence 18% plus

with having a target EBITDA margin of 18% plus

— Gaurav Sekhri

ROCE

ROCE ROCE · FY28 · High confidence exceeding 30%

with ROCE exceeding 30%

— Gaurav Sekhri

Revenue Growth

Annual Revenue Growth Revenue Growth · from FY27 onwards · Medium confidence 15-20%

So, we expect consistently around 15% to 18%, maybe 20% growth year-on-year from here onwards.

— Subodh Kumar Sharma

Renewable Energy

Capacity Renewable Energy · end of Q4 of FY '26 · High confidence 4.48 megawatt

Previously 1.23 megawatt → 4.48 megawatt

renewable energy capacity is being scaled up more than threefold from 1.23 megawatt to 4.48 megawatt, with completion targeted by end of Q4 of FY '26.

— Gaurav Sekhri
Share of Total Power Consumption Renewable Energy · end of FY '26 · High confidence 32%

Previously 24% → 32%

Renewable energy accounted for 24% of total power consumption in nine-month period and is targeted to rise to 32% by end of FY '26

— Gaurav Sekhri
Share of Total Power Consumption Renewable Energy · FY '27 end · High confidence over 50%

and over 50% by FY '27 end, aligning us with our ESG goals.

— Gaurav Sekhri

PCMB Business

Capacity Utilization PCMB Business · end of FY '26 · Medium confidence approximately 45%

Previously 40% → approximately 45%

We expect the capacity utilization to improve to approximately 45% by end of FY '26

— Gaurav Sekhri
Annual Revenue Contribution PCMB Business · next financial year · Medium confidence 8-10%

Previously 4% → 8-10%

and the division is targeting annual revenue contribution of almost 8% to 10% in the next financial year.

— Gaurav Sekhri
Volume PCMB Business · FY27 · Medium confidence 6,000 tons

Approximately 6,000 tons.

— Gaurav Sekhri

Oman Operations

GCC Region Sales Share Oman Operations · Q4 or Q1 of next year · Medium confidence 70%

Previously 40% → 70%

and 40% of sales are within the GCC region, and we are targeting this to rise to 70% by Q4 or by Q1 of next year.

— Gaurav Sekhri
ELT Cost Reduction Oman Operations · Q4 of '26 · High confidence 20%

A 20% reduction in ELT cost is also targeted in Q4 of '26, supporting margin and profitability improvement.

— Gaurav Sekhri

South Africa

Break-even South Africa · Q2 of FY '27 · Medium confidence break-even

Previously losing money → break-even

As of now, the South Africa venture is losing money, but we are expecting to stabilize and we expect to begin breaking even in our operations from Q2 of FY '27.

— Gaurav Sekhri

Working Capital

Working Capital Days Working Capital · going forward · High confidence around 50 days

So, we are operating at around 50 days currently and we do not expect that to change going forward.

— Gaurav Sekhri

TP Buildtech

Kolkata Plant Capacity Utilization TP Buildtech · about 6 months · Medium confidence 35-40%

Previously 15-20% → 35-40%

Yes, I think that, we are already factoring in, to go to about 35%, 40% utilization in about 6 months, and then of course we'll continue to make efforts to make it even better.

— Gaurav Sekhri

Capacity

Tire Recycling Capacity Capacity · near future · Medium confidence 235,000-250,000 tons

Previously 185,000 tons → 235,000-250,000 tons

So, that is where we expect in the near future our capacity to be around 235,000, 250,000 tons.

— Gaurav Sekhri

What to watch in Q4 FY26

PCMB Business Capacity Utilization

end of Q4 FY26

Current 40%

Target 45% by end FY26

Why it matters

Indicates progress in scaling up a new business segment crucial for future revenue contribution.

We expect the capacity utilization to improve to approximately 45% by end of FY '26

Risks & concerns

Slow contribution from PCMB business
medium

PCMB business contributed only 4% to revenue in 9MFY26 and is operating at 40% capacity utilization.

Management acknowledged
Stabilization phase for new Kolkata plant
medium

TP Buildtech's new Kolkata plant is operating at a low 15-20% capacity utilization and is expected to take 2-3 quarters to improve.

Management acknowledged
South Africa venture currently losing money
medium

The South Africa venture is currently unprofitable, with break-even targeted for Q2 FY27.

Management acknowledged
Impact of initial startup costs on 9M consolidated results
low

Consolidated revenue and PAT remained stable on a 9-month basis due to initial startup costs and profile profits across associates, JVs, and subsidiaries, expected to normalize.

Management acknowledged

Q&A highlights

5 direct, 1 evasive

PCMB business revenue and profitability outlook Partial

See, the EBITDA profile of this business at this point of time is lower than our overall, you know, EBITDA profile of the company. But like I said, it is early days. I think it's-I can only answer this question by saying one step at a time and-and we have to steadily scale up and then we'll be in a better position to give you a guidance.

Analysts sought clarity on the profitability of the new PCMB segment, with management indicating lower initial margins but a positive outlook as it scales up.

Asked by Ashvath Rajan

Q3 margin decline vs Q2 and EPR credits Direct

So, on the EBITDA, it is largely because of EPR. We had some EPR credits which we accounted for in the previous quarter in one go because there was some lag in the reflection of those credits at the EPR portal of the government. So, our policy is only when the EPR credits start showing on the portal we start accounting for them in our books.

Management clarified that the perceived margin decline was due to the timing of EPR credit accounting, not an underlying operational issue.

Asked by Manish

Revision of FY26 Revenue Guidance Direct

Okay, so Karan, just to answer your question, I think you missed our quarter 2 earnings call wherein we revised our guidelines for the revenue from FY '26. So, the same we are maintaining in the FY '26; we have visibility of 8% to 9% of revenue growth over previous financial year.

Management reiterated the updated FY26 revenue growth guidance, correcting analyst's previous understanding and providing clarity on current expectations.

Asked by Karan Gupta

South Africa venture break-even timeline Direct

As of now, the South Africa venture is losing money, but we are expecting to stabilize and we expect to begin breaking even in our operations from Q2 of FY '27.

Provided a specific timeline for when the South Africa operations are expected to become profitable, addressing current losses.

Asked by Yash Purbhe

R&D focus for new verticals Direct

Ma'am, we are -- we see opportunity for finding adjacencies within our existing business, within the scope of recycling tires and new applications of rubber, as well as the polymer composites business and the masterbatch business. So, this money is earmarked for finding new applications and adjacencies to our existing business. We are not, at the moment, considering getting into construction, demolition waste or battery recycling or something which is completely unconnected.

Clarified that R&D is focused on expanding within existing business lines and related adjacencies, not entirely new unrelated sectors.

Asked by Siddhi Kyal

TP Buildtech becoming a subsidiary Direct

We are not considering that as of now. I think will be the most accurate way to answer your question.

Management provided a clear stance on the future ownership structure of TP Buildtech, indicating no immediate plans for it to become a subsidiary.

Asked by Kamal Jeswani

Segment-wise margins Evasive

We don't share this data, Karan, segment-wise margins.

Management declined to provide segment-wise margin data, limiting detailed profitability analysis by segment for investors.

Asked by Karan Gupta

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Highlights

Tinna Rubber reported strong consolidated financial performance for Q3 FY26, with revenue increasing 13% YoY and 16% QoQ. This growth was primarily driven by higher tire processing volumes. Consolidated EBITDA saw a significant rise of 53% YoY and 57% QoQ, achieving a margin of 16.3%. Similarly, consolidated PAT grew strongly by 53% YoY and 57% QoQ, with a PAT margin of 9.2%. On a nine-month standalone basis, EBITDA margin expanded by 200 bps to 16.8%, and PAT margin by 110 bps to 9.6%.

Strategic Growth Initiatives & Vision 2028

The company is steadily progressing towards its Vision 2028, aiming for INR 1,000 crores in revenue, over 33% profitability, an EBITDA margin exceeding 18%, and ROCE above 30%. A key strategic update includes securing a two-year work order from Indian Oil Corporation valued at approximately INR 76 crores, bolstering the infrastructure business. The company also allocated INR 5 crores towards R&D to explore adjacencies within its existing business and initiated a life cycle assessment study for GHG emissions, expected to be completed by the financial year-end.

Capacity Expansion & Project Updates

Tinna Rubber completed capital expenditure of approximately INR 79 crores during the nine-month period of FY26, with an additional INR 50 crores planned for the balance of FY26 and FY27. Significant progress has been made in deploying QIP proceeds, with only INR 45 lakh remaining. The pyrolysis and RCB project is on track, with trial runs expected to commence by the end of Q4 FY26. The company aims to increase its tire recycling capacity from the current 185,000 tons to 250,000 tons as part of its Vision 2028.

Renewable Energy & ESG Focus

In line with its ESG goals, Tinna Rubber is significantly scaling up its renewable energy capacity more than threefold, from 1.23 MW to 4.48 MW, with completion targeted by the end of Q4 FY26. This initiative is expected to increase renewable energy's share of total power consumption from 24% to 32% by end FY26 and over 50% by end FY27, projecting savings of approximately INR 4 crores in FY26.

International Operations & Challenges

International projects show mixed results. The Oman plant is operating at 80% capacity utilization, generating INR 25 crores in revenue for 9MFY26, with a target to increase GCC region sales from 40% to 70% by Q4 FY26 or Q1 FY27. A 20% reduction in ELT cost is also targeted for Q4 FY26. In Saudi, a 13,000 sq meter plot has been allotted for a 24,000 TPA tire recycling facility, with work expected to commence mid-FY27. The South Africa venture, however, is currently losing money, with break-even anticipated by Q2 FY27.

Raw Material Stability & Working Capital

Management reported stability in raw material prices over the last two quarters, attributing this to increased optionality in the types and origins of end-of-life tires processed. This diversity helps manage fluctuations and maintain gross margins. The company's working capital days are currently around 50, and management expects to maintain this level going forward, indicating efficient working capital management.

TP Buildtech Segment Outlook

The TP Buildtech segment is expected to show moderate growth this financial year, aiming to finish at par or slightly higher than the previous year's INR 61 crores. The new Kolkata plant, currently in its stabilization phase with 15-20% capacity utilization, is targeted to reach 35-40% utilization within approximately six months. The introduction of new construction chemical product lines, such as grout repair and accelerators, is expected to contribute substantially to the segment's performance in the coming financial year.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript