Financial Performance (FY26 Consolidated)

  • Revenue from Operations: Stood at INR 327.12 crores, compared to INR 292.45 crores in FY25, registering a year-on-year growth of approximately 12%.
  • EBITDA: Stood at INR 47.8 crores (excluding other income), compared to INR 57.91 crores in FY25.
  • EBITDA Margin: Stood at 14.6% for the year.
  • Profit After Tax (PAT): Stood at INR 35.69 crores, against INR 38.67 crores in FY25.
  • Basic Earnings Per Share (EPS): Stood at INR 9.03 per share for FY26.
  • Debt-to-Equity Ratio: The consolidated balance sheet remains strong with a ratio of 0.03x as of March 31, 2026.

Financial Performance (Q4 FY26 Consolidated)

  • Revenue from Operations: Stood at INR 77.99 crores, compared to INR 69.53 crores in Q4 FY25, reflecting year-on-year growth of around 12%.
  • EBITDA: Stood at INR 11.22 crores, against INR 13.57 crores in the corresponding quarter last year.
  • EBITDA Margin: Stood at 14.4% for the quarter.
  • Profit After Tax (PAT): Stood at INR 8.94 crores for Q4 FY26.

Operational and Volume Highlights

  • Production Volume Growth: The company reported a 36% year-on-year growth in the number of tyres manufactured, from 393,253 tyres in FY25 to 535,870 tyres in FY26.
  • Product Growth: PCTR (Precured Tread Rubber) volume saw a 10% growth, while bonding gum and flaps saw a 56% growth.
  • New Depot: A new depot was launched in Gujarat, which commenced operations on December 1, 2025. It is intended to improve market penetration, product availability, and reduce lead times in Western India.
  • UAE Operations (Ras Al Khaimah Plant): The plant has a capacity of 1,200 metric tons. Current capacity utilization is reported to be less than 50%. Management stated that margins from UAE operations are better than Indian operations but growth is constrained by a cautious approach to credit extension in that market.
  • Capacity Utilization (India): Utilization is around 45% to 55% across different segments (retread segment ~55%, tyre segment ~45%).

Management Commentary on Challenges

Management identified several factors negatively impacting financial performance:

  • GST Anomaly: A key issue highlighted was the GST structure. While the GST rate on new commercial vehicle tyres was reduced from 28% to 18%, and new agricultural tyres to 5%, the GST on retreading materials remains at 18%. This has reduced the cost advantage of retreading versus buying new tyres, particularly for agricultural tyres where the GST differential is 13%. The Retread Manufacturers Association has approached the government to reduce GST on retreading materials to 5%.
  • Geopolitical Issues & Market Uncertainty: The ongoing war in West Asia and other geopolitical issues were cited as causes for market uncertainty, delayed purchases, shipping issues, and volatility in raw material prices.
  • Working Capital & Credit Period: The company traditionally offers a 3-4 month credit period to its dealer network of ~3,000 dealers. This period was extended by approximately one more month due to recent market conditions. This, coupled with holding 4-5 months of inventory (due to the seasonal nature of rubber and the need to stock over 1,200 SKUs), has led to high working capital requirements. Gross current assets were noted by an analyst to be INR 309 crores against revenues of INR 327 crores.
  • Raw Material Volatility: Volatility in raw material prices was cited as a headwind.

Strategic Initiatives and Outlook

  • Terra Rubber: The recycling initiative is focused on processing scrap from Tolins' operations to develop materials for re-use in its products. Road trials are ongoing with positive results. The initiative is expected to improve cost efficiency and profitability. Management is also scouting for inorganic acquisition opportunities in this area.
  • Growth Drivers: Management identified increasing tyre production volumes and exploring new export markets in Europe and the US as key future growth drivers.
  • Guidance for FY27: Management did not provide specific growth guidance due to current uncertainties. They expect to \"at least maintain FY25-26 levels of performance\" and are hopeful that market conditions will improve by Q2 FY27, leading to better performance in the second half of the year.
  • Margin Outlook: Management aims to maintain an acceptable margin level of 10% to 13% through operational efficiencies and cost reduction initiatives.

Q&A Session Highlights

The Q&A session included questions from investors and analysts (Keshav Garg, Anboli, Aniket Madhwani, Yash Parkar, Madhur Rathi, Diwakar Rana). Key topics discussed were the reasons for missing previous growth guidance of 20%, the high working capital cycle, strategies for improving sales and marketing, detailed performance of the UAE plant, the impact of GST, and the company's future roadmap.