Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26):

  • Revenue from Operations: ₹94.72 crore (up 43.29% from ₹66.10 crore)
  • EBITDA (Excl. Other Income): ₹9.61 crore (up 7.49% from ₹8.94 crore)
  • EBITDA Margin: 10.15% (down from 13.53%)
  • Profit after Tax (PAT): ₹6.50 crore (down 6.54% from ₹6.95 crore)
  • PAT Margin: 6.86% (down from 10.52%)
  • EPS: ₹1.65 (compared to ₹1.70)

Half-Yearly Performance (H1 FY27 vs H1 FY26):

  • Revenue from Operations: ₹173.98 crore (up 11.64% from ₹155.85 crore)
  • EBITDA: ₹18.52 crore (down 17.22% from ₹22.38 crore)
  • EBITDA Margin: 10.65% (down from 14.36%)
  • PAT: ₹12.69 crore (down 21.96% from ₹16.26 crore)
  • PAT Margin: 7.29% (down from 10.43%)
  • EPS: ₹3.21 (compared to ₹4.11)

Operational Highlights

Volume Performance:

  • Tyre sales increased by 48.83% during Q2 FY27
  • PCTR (Pre-cured Tread Rubber) volumes grew by 20.02% during Q2 FY27

Export Performance:

  • Export contribution increased to 10.65% in Q2 FY27 from 6.05% in Q2 FY26
  • Products exported to 40 countries including Middle East, East Africa, Kenya, Jordan, and Egypt

Management Commentary

Dr. KV Tolin, Promoter, Chairman and Managing Director, commented on the performance:

  • Revenue growth supported by improved business volumes
  • Indian tyre industry benefiting from steady replacement demand, automotive sector growth, and increasing mobility requirements
  • Industry navigating challenging cost environment with volatility in natural rubber and crude-linked raw materials
  • Focus on strengthening operational efficiencies, optimizing product mix, and improving capacity utilization
  • Progress in expanding international presence through exports
  • Profitability impacted by margin pressures from input costs
  • Focus on improving cost efficiencies, strengthening distribution network, and enhancing market reach
  • Future strategy includes leveraging manufacturing capabilities, expanding domestic and international markets, and capitalizing on opportunities in tyre and rubber products industry

Company Background

Tolins Tyres, founded in 1982, specializes in:

  • Two and three-wheeler tyres
  • Light Commercial Vehicle (LCV) tyres
  • Agriculture tyres
  • Pre-cured Tread Rubber and other retreading products

Manufacturing Facilities:

  • Two manufacturing facilities in Kalady, Kerala
  • Strategic location near Kochi and natural rubber sources
  • Wholly owned subsidiary Tolins Tyres LLC in Al Hamra Industrial Zone, Ras Al Khaimah, UAE

Distribution Network:

  • Backward integration for quality control and cost management
  • 8 depots and 3,737 dealers across India
  • First Indian retread brand to enter and thrive in the American market for pre-cured retreading products

Key Performance Drivers

  • Improved capacity utilization
  • Export growth and international market expansion
  • Volume growth in both tyre and PCTR segments
  • Operational efficiency improvements
  • Strong distribution network

Challenges Mentioned

  • Margin pressures from volatility in natural rubber and crude-linked raw materials
  • Input cost inflation impacting profitability
  • Competitive market environment

Forward Outlook

  • Focus on sustainable and profitable growth
  • Continued expansion in domestic and international markets
  • Operational efficiency improvements
  • Product mix optimization
  • Leveraging manufacturing capabilities
  • Capitalizing on opportunities across tyre and rubber products industry