Key Quantitative Figures (Standalone Basis)

Q1 FY27 Financial Performance (YoY Comparison):

  • Revenue from Operations: ₹57.6 crores (vs. ₹45.0 crores in Q1 FY26), up 28%
  • Other Income: ₹2.9 crores (flat YoY)
  • Total Revenue: ₹60.4 crores (vs. ₹48.0 crores in Q1 FY26), up 26%
  • Total Raw Material Cost: ₹38.0 crores
  • Gross Profit: ₹22.4 crores (vs. ₹16.6 crores), up 35%
  • Gross Profit Margin: 37.1% (vs. 34.6%), expansion of 251 bps
  • Employee Expenses: ₹6.2 crores
  • Other Expenses: ₹8.0 crores
  • EBITDA: ₹8.2 crores (vs. ₹4.0 crores), up 108%
  • EBITDA Margin: 13.6% (vs. 8.2%), expansion of 533 bps
  • Depreciation: ₹1.3 crores
  • EBIT: ₹6.9 crores (vs. ₹2.5 crores), up 173%
  • EBIT Margin: 11.4% (vs. 5.3%)
  • Finance Cost: ₹0.1 crores
  • Profit Before Tax: ₹6.8 crores (vs. ₹2.4 crores)
  • Tax: ₹1.7 crores (vs. ₹0.6 crores)
  • Profit After Tax: ₹5.1 crores (vs. ₹1.8 crores), up 176%
  • PAT Margin: 8.4% (vs. 3.8%), expansion of 456 bps
  • EPS: ₹1.93 (vs. ₹0.70)

Q1 FY27 Financial Performance (QoQ Comparison with Q4 FY26):

  • Revenue from Operations: ₹57.6 crores (vs. ₹60.8 crores in Q4 FY26), down 5%
  • Total Revenue: ₹60.4 crores (vs. ₹63.2 crores), down 4%
  • Gross Profit Margin: 37.1% (vs. 34.2%), expansion of 290 bps
  • EBITDA Margin: 13.6% (vs. 10.0%), expansion of 355 bps
  • PAT Margin: 8.4% (vs. 5.6%), expansion of 277 bps

Management Commentary

Mr. Vijay Shrinivas, CEO & Whole Time Director, commented on the results:

The strong performance was driven by disciplined execution of product mix, channel mix, and pricing management. The company continues to serve performance-seeking customers through its Indag-branded product portfolio. Input costs (natural rubber and PBR) touched multi-year highs through Q1 FY27 due to the 2026 West Asia escalation, which is being managed through raw-material monitoring, calibrated price pass-through, and supplier/geography diversification.

The retreading industry's value proposition was highlighted:

  • Economically: A retreaded tyre saves up to ~70% of new tyre cost
  • Environmentally: A retreaded tyre saves 57 liters of oil, 44kg of rubber, and ~136 kg of lower CO₂ emissions versus a new tyre

Operational Highlights and Capacity

  • Pre-cured Tread Rubber capacity: 20,000 MT p.a.
  • Un-vulcanized Rubber Strip Gum capacity: 2,200 KL p.a. (3 variants available)
  • Universal Spray Cement capacity: 5,000 MT p.a.
  • Services different vehicle types: M&HCVs, LCVs, Passenger vehicles, Off-road vehicles
  • Specialized patterns for varied road applications: highways, hills, mining, off-road
  • Over 50 on-ground personnel: Sales Employees, Technical Service Engineers, Fleet Engagement Executives
  • Extensive network: Over 300 dealers, 3000 retreaders, 15 strategically located depots

Subsidiary Update: Millenium Manufacturing Systems

Millenium Manufacturing Systems, an EMS provider in the power-electronics segment, is a joint venture of Sun Group companies (ELCOM Innovations, SUN New Energy Capital, and INDAG).

  • Goal: To be India's leading power electronics manufacturing company focused on the energy transition
  • Specialization: Power electronics for energy generation and grid management
  • Manufacturing Base: Mohali facility
  • Key Milestones: Successfully completed factory certifications; achieved first customer delivery in Q2 FY25; completed beta order deliveries in Q3 FY25; received first commercial serial order in FY26 for Power Conversion Systems (PCS) for Battery Energy Storage Systems (BESS)
  • Current Status: Continued to build on its FY26 foundation and commenced commercial production and dispatches during Q1 FY27

Customer Testimonials

The presentation includes multiple customer testimonials from fleet operators praising Indag's tread patterns for providing superior mileage (e.g., 1.4-1.6 lakh kms) and cost-per-kilometer savings compared to competitors. Testimonials also highlight satisfaction with Indag's consultancy services and technical support.

Market Context and Growth Drivers

The presentation positions the retreading industry as highly underpenetrated and poised for multi-year growth, driven by:

  • Improved road infrastructure
  • Growing environmental consciousness
  • Increasing radialization trend (~60% currently, expected to rise to 68-70% by FY30)
  • GST and favorable regulatory guidelines
  • Inclination to Electric Vehicles

CSR Initiatives

The company has partnered with The Nabha Foundation for education programs across 5 Navi Disha schools (418 students) and Maharani Gurucharan Kaur Girls School (210 students). 628+ students and 350+ families are direct beneficiaries; 42 of 46 Grade V Navi Disha students achieved A/A+ in SCERT.

Historical Financials (FY23-FY26)

Profit & Loss Statement (₹ crores):

| FY | Revenue | Gross Profit | EBITDA | PAT |

| FY26 | 224.7 | 77.6 (34.5%) | 22.4 (10.0%) | 12.4 (5.5%) |

| FY25 | 236.7 | 75.3 (31.8%) | 16.5 (7.0%) | 8.4 (3.6%) |

| FY24 | 261.2 | 91.9 (35.2%) | 27.7 (10.6%) | 16.7 (6.4%) |

| FY23 | 252.3 | 77.9 (30.9%) | 22.0 (8.7%) | 13.2 (5.2%) |

Balance Sheet Highlights (March 2026):

  • Total Equity: ₹235.6 crores
  • Total Assets: ₹278.5 crores
  • Non-Current Assets: ₹142.3 crores (including PPE ₹25.0 crores, Investments ₹94.0 crores)
  • Current Assets: ₹136.3 crores (including Inventories ₹47.2 crores, Trade Receivables ₹22.2 crores)