Company and Meeting Details

Indag Rubber Limited (Scrip Code: 509162, CIN: L74899DL1978PLC009038) held its 47th Annual General Meeting (AGM) on Wednesday, August 12, 2026, at 05:00 P.M. (IST) through video conferencing. The transcript was filed on August 19, 2026.

Financial Performance FY 2025-26

  • Total Income: ₹225 crores (compared to ₹237 crores in previous year)
  • Profit Before Finance Cost and Depreciation: ₹22.43 crores (compared to ₹16.48 crores in previous year)
  • Profit After Tax: ₹12.38 crores (compared to ₹8.42 crores in previous year, representing a 47% increase)
  • The improvement in profitability was attributed to favourable raw material cost environment and improved product and channel mix.

Dividend Declaration

  • Interim Dividend: ₹0.90 per equity share (already declared)
  • Final Dividend: ₹1.50 per equity share (recommended for approval in this AGM)
  • Total Dividend for FY 2025-26: ₹2.40 per equity share (face value ₹2 each)

Business Performance and Strategic Updates

  • Subsidiary Millenium Manufacturing Systems Pvt. Ltd. began contributing to consolidated revenue with its first commercial order during the year.
  • The Private segment remains the largest revenue contributor, demonstrating resilience with deepened franchisee partner relationships.
  • The company positions itself as an end-to-end products and solutions provider in the retreading segment with focus on national accounts and large fleet owners.
  • STU (State Transport Undertaking) business share declined from 25% in FY 2015-16 to 6% in FY 2025-26 as part of strategic rebalancing toward higher-margin segments.

Outlook and Challenges

  • FY 2026-27 expected to remain volatile due to global supply dynamics and crude oil-linked price cycles.
  • West Asia tensions escalation in early 2026 expected to impact raw material supplies affecting both tyre manufacturing and retreading industries.
  • The economic value proposition of retreading remains compelling due to increases in fuel, toll and tyre costs for fleet operators.

Resolutions Presented for Approval

1. Ratification of remuneration of Shome & Banerjee, Cost Auditors for FY 2026-27

2. Re-appointment of Mr. Raj Kumar Agrawal as Independent Director for second term of 5 years from June 15, 2026 to June 14, 2031

3. Approval for payment of Commission to Non-Executive Directors for Financial Years 2026-27, 2027-28 and 2028-29

Shareholder Q&A Highlights

R&D and Product Development

  • Company operates a fully functional R&D centre at its manufacturing plant
  • Launched two new product lines in FY25:
  • 'WinMaster': Superior retreaded product delivering up to 80% of life of new tyre
  • 'Retrex': Value-focused product line for owner-drivers and small fleet operators
  • Became first retreading company in India to launch dedicated product line for Electric Vehicles (EVs)
  • Applied for new pattern design registrations for over half a dozen patterns

Margin Management and Working Capital

  • Working capital cycle improved from 120 days to 70 days over five years
  • As of March 31, 2026: Receivable days: 32 days (from 63 days), Payable days: 44 days (from 31 days), Inventory days: 80 days (from 82 days)
  • Margin management through data-led procurement, product mix optimization, channel mix, and active pricing adjustments

Growth Drivers and Market Position

  • Government infrastructure development (NHAI) reducing logistics costs from 12% to 8-9% of GDP target
  • Increased vehicle utilization (7,500 km to 10,000+ km monthly per vehicle) accelerating tyre wear
  • Radialization of commercial vehicles reached 60-65% (from 20% a decade ago), growing 2-3% annually
  • Industry formalization driven by GST implementation, radialization, overloading checks, and EV adoption
  • India has 10,000-12,000 retreaders with approximately 8,000 active; company reaches 3,000 of them

Financial Performance Clarifications

  • Decline in standalone revenue over ten years attributed to deliberate reduction in low-margin STU business
  • EBITDA margin expansion in FY25-26 due to operational improvements, procurement discipline, and pricing management
  • Other income comprises three elements: MRO income, treasury operations income, and large-fleet-owner partner business income

Dividend and Shareholder Returns

  • Company declared 120% dividend (₹2.40 per share of face value ₹2)
  • Consistent dividend declaration including during COVID period

Administrative Matters

  • E-voting was conducted from August 9-11, 2026
  • Voting results to be announced on company website and stock exchange after scrutinizer report
  • Proceedings were recorded for compliance purposes

Attendees

Directors & KMPs:

  • Mr. Nand Khemka (Chairman cum Managing Director)
  • Mr. Nikhil Khanna
  • Mr. Raj Kumar Agrawal
  • Ms. Ranjana Agarwal
  • Mr. Shiv Khemka
  • Mr. Sushil Kumar Dalmia (Independent Director)
  • Mr. Uday Khemka
  • Mr. Vijay Shrinivas (CEO & Whole-time Director)
  • Mr. Anil Bhardwaj (CFO)
  • Ms. Sonal Garg (Company Secretary & Compliance Officer)

Auditors:

  • Authorized representatives of Khanna & Annadhanam (Statutory Auditors)
  • Authorized representatives of RMG & Associates (Secretarial Auditors)

#Tags: #IndagRubber #AGM2026 #FY26Results #Dividend #Retreading #EVProducts #WorkingCapitalImprovement