Indag Rubber Limited declared its audited financial results for the fourth quarter and financial year ended March 31, 2026. The press release was submitted to BSE Limited under company code 1321.

Financial Performance (Standalone Basis, including other income)

Q4 FY26 Performance:

  • Total Revenue: ₹63.16 crores (vs. ₹57.86 crores in Q4 FY25, +9.2% YoY; vs. ₹58.74 crores in Q3 FY26, +7.5% QoQ)
  • EBITDA: ₹6.33 crores (vs. ₹3.49 crores in Q4 FY25, +81% YoY; vs. ₹5.96 crores in Q3 FY26, +6% QoQ)
  • EBITDA Margin: 10.0% (vs. 6.0% in Q4 FY25, +400 bps; vs. 10.1% in Q3 FY26, -10 bps)
  • Profit After Tax: ₹3.55 crores (vs. ₹1.65 crores in Q4 FY25, +115% YoY; vs. ₹3.37 crores in Q3 FY26, +5% QoQ)
  • PAT Margin: 5.6% (vs. 2.9% in Q4 FY25, +270 bps; vs. 5.7% in Q3 FY26, -10 bps)

FY26 Annual Performance:

  • Total Revenue: ₹224.81 crores (vs. ₹236.90 crores in FY25, -5.1% YoY)
  • EBITDA: ₹22.43 crores (vs. ₹16.48 crores in FY25, +36% YoY)
  • EBITDA Margin: 10.0% (vs. 7.0% in FY25, +300 bps)
  • Profit After Tax: ₹12.38 crores (vs. ₹8.42 crores in FY25, +47% YoY)
  • PAT Margin: 5.5% (vs. 3.6% in FY25, +190 bps)

Management Commentary

Mr. Vijay Shrinivas, CEO & Whole Time Director, commented that the revenue decline in FY26 was primarily due to weaker STU volumes in Q1. Despite topline moderation, profitability recovered strongly with focus on operational excellence. The company generated ₹19.7 crores in operating cash flow in FY26, up from ₹6.5 crores in FY25, driven by higher profitability and reduction in working capital cycle through disciplined credit control and optimized raw material supply chain management.

Dividend Declaration

The Board has recommended a final dividend of ₹1.5 per equity share (face value ₹2) for FY26. This brings the total dividend for the year to ₹2.40 per share, inclusive of the ₹0.90 interim dividend paid in November.

Business Operations and Strategy

The company continues to serve performance-seeking customers through the Indag-branded product portfolio, with deeper engagement of franchisee partners through structured technical training, onground audits, and faster information flow on raw-material trends.

Raw Material Challenges and Response

The 2026 West Asia escalation has elevated input costs sharply into early FY27. The company is managing this through raw-material monitoring, calibrated price pass-through, supplier and geography diversification, product-mix optimisation, and disciplined working capital management.

Industry Value Proposition

The retreading industry offers strong economic benefits (saving up to ~70% of new tyre cost, reducing cost-per-kilometre to nearly a third) and environmental benefits (saving 57 liters of Oil, 44kg of rubber, and ~136 kg of lower CO₂ emissions versus a new tyre).

Subsidiary Update

Millenium Manufacturing Systems (EMS provider in power-electronics segment for global green energy transition) achieved a meaningful milestone in FY26, progressing from factory homologation to securing its first commercial serial order for power conversion systems used in Battery Energy Storage Systems (BESS).

Company Background

Indag Rubber Limited, founded by Khemka Group in the early 80s, pioneered Cold Retreading Technology in India. The company has a state-of-the-art manufacturing unit at Nalagarh Industrial Estate in Himachal Pradesh with annual capacity of 20,000 tons of Precured Tread Rubber (PTR) along with allied items.