Indag Rubber Q2 Revenue Up 27% YoY to ₹69.84 Crore

Financial Performance - Q2 FY27 (Standalone)

Revenue from Operations: ₹67.5 crore (up 29% YoY from ₹52.3 crore)
Other Income: ₹2.3 crore (down from ₹2.7 crore in Q2 FY26)
Total Revenue: ₹69.8 crore (up 27% YoY from ₹55.0 crore)
Total Raw Material Cost: ₹49.6 crore (up from ₹35.2 crore in Q2 FY26)
Gross Profit: ₹20.2 crore (up 2% YoY from ₹19.8 crore)
Gross Profit Margin: 29.0% (down 699 bps from 36.0% in Q2 FY26)
Employee Expenses: ₹6.2 crore (flat YoY)
Other Expenses: ₹8.4 crore (up from ₹7.4 crore in Q2 FY26)
EBITDA: ₹5.6 crore (down 10% YoY from ₹6.2 crore)
EBITDA Margin: 8.0% (down 324 bps from 11.3% in Q2 FY26)
Depreciation: ₹1.3 crore (down from ₹1.5 crore in Q2 FY26)
EBIT: ₹4.3 crore (down 9% YoY from ₹4.7 crore)
EBIT Margin: 6.1% (down 246 bps from 8.6% in Q2 FY26)
Finance Cost: ₹0.1 crore (flat YoY)
Profit Before Tax: ₹4.1 crore (down from ₹4.6 crore in Q2 FY26)
Tax: ₹0.9 crore (down from ₹1.0 crore in Q2 FY26)
Profit After Tax: ₹3.3 crore (down 9% YoY from ₹3.6 crore)
PAT Margin: 4.7% (down 188 bps from 6.6% in Q2 FY26)
EPS: ₹1.25 (down from ₹1.38 in Q2 FY26)

Financial Performance - H1 FY27 (Standalone)

Revenue from Operations: ₹125.0 crore (up 28% YoY from ₹97.3 crore)
Other Income: ₹5.2 crore (down from ₹5.6 crore in H1 FY26)
Total Revenue: ₹130.3 crore (up 27% YoY from ₹103.0 crore)
Total Raw Material Cost: ₹87.7 crore (up from ₹66.6 crore in H1 FY26)
Gross Profit: ₹42.6 crore (up 17% YoY from ₹36.3 crore)
Gross Profit Margin: 32.7% (down 258 bps from 35.3% in H1 FY26)
Employee Expenses: ₹12.5 crore (up from ₹12.1 crore in H1 FY26)
Other Expenses: ₹16.4 crore (up from ₹14.1 crore in H1 FY26)
EBITDA: ₹13.8 crore (up 36% YoY from ₹10.1 crore)
EBITDA Margin: 10.6% (up 74 bps from 9.9% in H1 FY26)
Depreciation: ₹2.6 crore (down from ₹2.9 crore in H1 FY26)
EBIT: ₹11.2 crore (up 54% YoY from ₹7.2 crore)
EBIT Margin: 8.6% (up 154 bps from 7.0% in H1 FY26)
Finance Cost: ₹0.2 crore (flat YoY)
Profit Before Tax: ₹10.9 crore (up from ₹7.0 crore in H1 FY26)
Tax: ₹2.6 crore (up from ₹1.5 crore in H1 FY26)
Profit After Tax: ₹8.4 crore (up 53% YoY from ₹5.5 crore)
PAT Margin: 6.4% (up 111 bps from 5.3% in H1 FY26)
EPS: ₹3.18 (up from ₹2.08 in H1 FY26)

Management Commentary

CEO & Whole Time Director Mr. Vijay Shrinivas commented that Q2 FY27 revenue growth was supported by higher sales volumes, though raw material costs remained high after the 2026 West Asia escalation, weighing on margins. The company is managing this through calibrated price pass-through, raw-material monitoring, and supplier and geography diversification.

Business Operations and Product Portfolio

Precured Tread Rubber: Capacity of 20,000 MT p.a., servicing M&HCVs, LCVs, Passenger vehicles and Off-road vehicles with specialized patterns
Un-vulcanized Rubber Strip Gum: Capacity of 2,200 KL p.a. with 3 variants, protects tyre buffed surface from oxidation
Universal Spray Cement: Capacity of 5,000 MT p.a., provides strong bonding between casing and tread
Tyre Retreading Envelopes: Heat resistive compound with lowest cost per cure envelopes

Customer Testimonials and Engagement

The presentation includes multiple customer testimonials highlighting performance:

R.R. Logistics (Jaipur): Achieved 1.4 lakh KMs with Indag ZZYL pattern, 32% better than competitor
Bhagwati Air Express (Delhi): Achieved 1.6 lakh KMs with Indag ZZYL pattern
Veerbhadra Swamy Tours & Travels (Hyderabad): Achieved 90,000 KMs with Indag ZZYL pattern, 24% better than competitor
New Jaishankar Transport Company (Jaipur): ZZA1 pattern provided 14% more mileage on steer axle

Channel Engagement

Hosted CEO's Club meet in Phuket, Thailand from September 17-21, 2026 for top-performing dealers
Over 50 highly trained on-ground personnel including sales executives, technical engineers, and fleet engineers
Network spanning over 300 dealers, 3000 retreaders, and 15 strategically located depots

Subsidiary Update - Millenium Manufacturing Systems

EMS provider in power-electronics segment for global green energy transition
Completed first commercial serial order for Power Conversion Systems (PCS) used in Battery Energy Storage Systems (BESS)
All systems invoiced and despatched to customer in Europe
Manufacturing base in Mohali with advanced infrastructure
Goal: To be India's leading power electronics manufacturing company focused on energy transition

CSR Initiatives

Partnered with The Nabha Foundation for education programs
5 Navi Disha schools (418 students, K-5) and Maharani Gurucharan Kaur Girls School (210 students, K-10)
628+ students and 350+ families as direct beneficiaries
42 of 46 Grade V Navi Disha students achieved A/A+ in SCERT
Environmental initiatives including 250 saplings planted (90% survival)

Historical Financials (Standalone)

Profit & Loss Statement (₹ crore):

FY26: Revenue 214.2, EBITDA 22.4 (10.0%), PAT 12.4 (5.5%), EPS 4.72
FY25: Revenue 224.8, EBITDA 16.5 (7.0%), PAT 8.4 (3.6%), EPS 3.21
FY24: Revenue 251.2, EBITDA 27.7 (10.6%), PAT 16.7 (6.4%), EPS 6.38
FY23: Revenue 243.9, EBITDA 22.0 (8.7%), PAT 13.2 (5.2%), EPS 5.04

Balance Sheet (March 2026, ₹ crore):

Share Capital: 5.3
Other Equity: 230.4
Total Equity: 235.6
Total Assets: 278.5
Non-Current Assets: 142.3 (including PPE 25.0, Investments 94.0)
Current Assets: 136.3 (including Inventories 47.2, Trade Receivables 22.2, Cash 3.6)

Market Context and Industry Positioning

Retreading industry value proposition: Saves up to ~70% of new tyre cost, reduces cost-per-kilometre to nearly a third
Environmental benefits: Saves 57 liters of oil, 44kg of rubber, and ~136 kg of lower CO₂ emissions versus new tyre
Industry drivers: Improved road infrastructure, growing environmental consciousness, increasing radialization trend, GST & favorable regulatory guidelines, inclination to electric vehicles
Truck & Bus tyre segment radialization at ~60%, expected to rise to 68-70% by FY30