Company Overview
Tinna Rubber and Infrastructure Limited reported strong financial performance for FY 2025-26, with standalone revenue of ₹5,332.34 crore (5.6% YoY growth) and net profit of ₹532.35 crore (25.9% YoY growth). Consolidated revenue stood at ₹5,458.07 crore (8% YoY growth) with profit after tax of ₹528.47 crore. The company achieved PAT margins of 10.0% and EBITDA margins of 17.2%, demonstrating improved operational efficiency.
Financial Highlights
Key financial metrics showed significant improvement: Basic EPS increased to ₹29.90 (from ₹24.68), diluted EPS to ₹29.88 (from ₹24.65), and shareholders' equity grew to ₹2,931.13 crore from ₹1,720.69 crore. The board recommended a final dividend of ₹3.25 per share, subject to shareholder approval at the 39th AGM scheduled for September 15, 2026.
Capital Raising and Expansion
The company successfully completed a Qualified Institutional Placement (QIP), raising ₹786.96 crore by issuing 886,257 equity shares at ₹888 per share. Proceeds were utilized for capital expenditure (₹334.62 crore), debt repayment (₹230.21 crore), and general corporate purposes. Significant capital expenditure of ₹710.95 crore was undertaken, increasing tyre crushing capacity to 185,000 TPA with plans to reach 235,000 TPA by FY27. Capital work in progress stood at ₹417.18 crore, primarily for expansion projects at Varle and Gummidipoondi facilities.
Operational Performance
Tinna expanded its manufacturing footprint with international operations in Oman (Global Recycle LLC contributing ₹30 crore revenue) and South Africa joint venture (Mbodla Investments). The company increased installed solar capacity from 1.23 MW to 4.48 MW, expecting 50% of power requirements from renewable sources from FY27 onwards, generating savings of ₹2.76 crore during FY26.
Regulatory Compliance and Corrections
The company submitted a corrigendum to its FY26 Annual Report correcting clerical errors in investment disclosures for Thenpandian Energy Innovations Private Limited and Infravolt Solar Private Limited, along with footer references. The corrections had no financial impact and were submitted under SEBI Listing Regulations 30 and 34. Auditors issued a clean unqualified opinion with no key audit matters identified.
Financial Position and Ratios
Total assets increased to ₹5,156.89 crore from ₹3,745.93 crore YoY. Net debt-to-equity ratio improved significantly to 0.39x from 0.73x, while interest coverage ratio strengthened to 7.49x from 6.09x. The company maintained minimal consumer complaints with only 2 quality-related issues addressed through corrective actions.
Corporate Governance and ESG
Management changes included Mr. Ravindra Chhabra retiring as CFO and Mr. Abhay Kumar appointed as his replacement. CSR spending amounted to ₹89.41 lakhs on education, healthcare, and environmental sustainability. The company conducted a Life Cycle Assessment showing reduction of 10.37 million kg of CO₂ emissions and received the Innovation Award 2025 from Rubberized Asphalt Foundation.
Contingencies and Litigation
The company faces various tax litigations involving disputed amounts of approximately ₹1,182.40 crore across excise duty, customs duty, GST, income tax, sales tax/VAT, and service tax matters. Contingent liabilities totaled ₹244.53 crore, including bank guarantees of ₹99.47 crore and disputed tax liabilities of ₹118.24 crore.