Tinna Rubber and Infrastructure Limited

Tinna Rubber delivered robust financial results for FY25, with revenue growing by 39% year-on-year to INR 505 crores, surpassing the initial guidance of INR 500 crores. This strong top-line performance was complemented by a 22% increase in EBITDA to INR 76 crores and a 20% rise in PAT to INR 48 crores, resulting in EBITDA and PAT margins of 15% and 9.6% respectively. The company also achieved a 3-year CAGR of 30% for revenue, 27% for EBITDA, and 42% for PAT.

The company significantly scaled up its tire crushing capacity to 185,000 metric tons per annum, exceeding its earlier guidance of 150,000 tons, and aims to further increase this to 250,000 tons by FY27. For FY25, the planned capital expenditure of approximately INR 50 crores was completed as guided. Looking ahead, Tinna Rubber plans to invest around INR 100 crores over the next two years and intends to raise approximately INR 150 crores through a QIP to strengthen existing businesses and establish a recovered carbon black plant.

Tinna Rubber witnessed broad-based growth across its segments in FY25, with Industrial revenue growing 46%, Consumer 55%, and Steel 109%. The Infrastructure segment, contributing 48% of total revenue, grew 18% with a 75% volume growth in rubberized bitumen processing. The newly introduced Polymer Composites business, including recycled engineered plastics and masterbatch, contributed approximately 1% to the overall top line in FY25, with an expected contribution of INR 30-40 crores in FY26.

The company demonstrated improved operational efficiency, with the volume of tires processed growing 35% in FY25. A significant highlight was the 48% improvement in the working capital cycle, reducing it from 62 days in FY22 to just 42 days in FY25. Management noted that while new product lines might slightly increase working capital days by 10-15%, the overall focus remains on efficiency and financial discipline.

Tinna Rubber is accelerating its global expansion strategy, building on the success of Global Recycle LLC in Oman, which operates at 85% capacity utilization. The company is actively identifying land in Saudi Arabia for a 24,000 ton per annum recycling facility, aiming for commissioning in H2 FY26. Additionally, a JV in South Africa has received approval to export 24,000 tons of end-of-life tires to India, with operations expected to commence in Q1 FY26.

The company reiterated its ambitious Vision '28 targets, aiming to expand its presence from 6 to 10 locations and achieve INR 1,000 crores in revenue with a CAGR of over 25%. Profitability is targeted to grow over 33%, with EBITDA margins maintained around 18% and ROCE around 30%. Management expressed confidence in achieving these targets through strategic investments, capacity expansion, and a resilient global procurement network, while also recommending a final dividend of INR 4 per share.

While FY25 margins saw a slight dip due to elevated ocean freights impacting raw material costs, management noted that prices are stabilizing. They actively mitigate this risk by sourcing from multiple origins and implementing customer price corrections. The company also reported INR 26 crores in EPR credits for FY25, with INR 12 crores pertaining to earlier years. Current EPR value is trading between INR 2.25 to INR 2.60, and a stable range is expected as the supply-demand situation clarifies in the new financial year.