Tinna Rubber Q4 FY26: Margins expand as volumes hit records, and new verticals line up for FY27

Tinna Rubber and Infrastructure Limited closed FY26 with a clear theme: scale, but with a sharper focus on value-add and balance sheet improvement. On a consolidated basis, revenue from operations rose to INR 546 crore in FY26 from INR 505 crore in FY25. EBITDA increased to INR 94 crore from INR 76 crore, taking the EBITDA margin to 17.1% from 15.1%. Profit after tax stood at INR 53 crore versus INR 48 crore.

Q4 FY26 underlined that operating leverage is real. Consolidated revenue from operations rose to INR 157 crore versus INR 129 crore in Q4 FY25. EBITDA increased to INR 29 crore, lifting the margin to 18.2%. PAT came in at INR 17 crore, with a 10.5% margin.

Behind the numbers is a business that converts end-of-life tyres into recycled rubber materials and related products across multiple end markets. The company positions itself as one of the larger ELT recyclers globally, with operations across India and Oman, and projects in South Africa and Saudi Arabia.

Financial performance: steady growth with visible margin gains

The consolidated income statement trend shows a business that has expanded rapidly since FY23. Operational income moved from INR 295 crore in FY23 to INR 546 crore in FY26. EBITDA rose from INR 37 crore to INR 94 crore in the same period.

The company also highlighted balance sheet improvement. Total debt reduced to INR 121 crore in FY26 from INR 134 crore in FY25, while net debt to equity improved to 0.39x from 0.73x. Interest coverage improved to 7.49x from 6.09x.

A notable operational lever in FY26 was renewable energy. Management stated solar power contributed savings of INR 2.76 crore in FY26, and the company expanded solar capacity from 1.23 MW to 4.48 MW.

Operational momentum: all-time high tyre processing volumes

Tinna’s core activity is tyre processing, and FY26 marked an all-time high for volumes. India processed 155,000 metric tons in FY26, up from 135,000 in FY25. Oman processed 12,402 metric tons in FY26 versus 13,566 metric tons in FY25, with management attributing softness to temporary disruptions.

Capacity expansion has been central to the growth strategy. India tyre crushing capacity was 185,000 TPA in FY26 versus 170,000 TPA in FY25, and the company is targeting 235,000 TPA by FY27.

The company also emphasised product mix improvement. It stated crumb rubber production increased by 15% and a higher portion of crumb rubber was utilised for value addition into micronized rubber powder (MRP), reclaimed rubber (RR), and crumb rubber modifier (CRM). FY26 production volumes saw MRP rise 34%, RR rise 19%, and CRM rise 50%.

A further cost lever was feedstock flexibility. Management said that over the last two years, the company expanded capability to process all types of ELT tyres, resulting in 10 to 15% raw material cost savings.

Segment mix: industrial gains offset a conscious pullback in infrastructure

Tinna’s consolidated revenue mix in FY26 reflected a broad end-market spread. Infrastructure contributed 38%, industrial 30%, steel 20%, consumer 8%, and PCMB 4%.

In the concall, management flagged that infrastructure could see temporary softness in Q1 and Q2 due to bitumen availability constraints, but expects normalisation later because of India’s road construction pipeline.

The industrial segment was positioned as the clearest near-term growth driver. Management linked rising virgin polymer prices and ESG commitments from tyre manufacturers to sustained demand for recycled rubber materials.

New growth engines: PCMB and the rCB plus pyro line

Two initiatives stand out for FY27: the scaling of PCMB and the ramp-up of pyrolysis and recovered carbon black.

PCMB scaling

The Polymer Composite and Masterbatch business contributed about 4% of FY26 turnover and is targeted to reach 8 to 10% in FY27. Management said PCMB operated at about 40% utilisation in FY26 and volumes grew sharply over the year. The company is expanding its polymer compounding facility in Haryana, targeting 18,000 TPA capacity by end of Q1 FY27. In the concall, management guided about INR 75 crore revenue from PCMB in FY27.

Management also explained that PCMB typically comes with higher credit days, which had some impact on receivable and working capital days.

Pyrolysis and recovered carbon black

The company stated it has commenced operations of its Tyre Pyrolysis Oil and recovered carbon black plants. Management guided that TPO production should stabilise by end of Q1 FY27, rCB trials should begin in Q2 FY27, and normalisation is expected by Q3 FY27. For FY27, management guided a topline of about INR 50 to 55 crore from the rCB and pyro business.

On profitability, management indicated an expected EBITDA range of about 15% to 19% for these plants, while noting that more certainty will come after full-scale operations and improved visibility on product realisations.

International projects and associates: progress with near-term noise

The Oman plant operated at about 85% utilisation and contributed roughly INR 30 crore revenue in FY26. Management acknowledged margin pressure due to elevated raw material costs and export disruptions in the last quarter, with corrective measures expected to normalise within Q1 FY27.

In South Africa, phase 1 capex is complete and exports of semi-processed material have started. The investor presentation stated breakeven is expected from Q1 FY27 onwards, while the concall mentioned breakeven from Q2 FY27 onwards. Phase 2, which focuses on full-scale tyre recycling, has been initiated, with crumb rubber production expected around early FY27.

For Saudi Arabia, the company has formed Tinna Rubber Arabia Ltd and outlined plans for a 24,000 MT per annum tyre recycling facility. A 13,000 square metre plot has been allocated, but management has revised timelines and indicated construction may begin in mid FY27, subject to normalisation of geopolitical conditions. In the concall, management estimated expected spend of about INR 20 to 25 crore for the Saudi project.

On associates, TP Buildtech recorded FY26 revenue of INR 75 crore and EBITDA of INR 6 crore, but profitability was impacted by currency fluctuations, crude oil volatility, and a sharp rise in polymer prices linked to the Middle East crisis. It also launched a new Kolkata plant and new product lines, which increased operating costs.

Capital allocation, EPR and the FY27 setup

Management said capex of INR 107 crore was completed in FY26 and about INR 100 crore is planned over FY27 and FY28. Management indicated most of the capex is expected to be funded through internal accruals, with a potential additional debt of up to about INR 20 crore if required.

EPR credits remain a meaningful and stable revenue contributor. The company stated EPR credit sales contributed about INR 29 crore in both FY25 and FY26. Management clarified on the call that EPR revenue is taxable like normal sales income.

The company also guided segment mix for FY27 on the call. It expects PCMB to contribute about 10% of revenue, infrastructure about 30% to 35%, industrial about 35%, consumer about 10%, and the balance to come from new product lines such as rCB and pyro.

Takeaways

Tinna’s FY26 results show a business moving from volume-led growth to a more balanced model where margins, mix and balance sheet strength are equally important. Record tyre processing volumes and higher value-added products helped expand margins, while debt reduced and coverage improved.

FY27 will be shaped by three moving parts: potential near-term softness in infrastructure due to bitumen constraints, continued strength in industrial demand and exports, and the ramp-up of PCMB and rCB plus pyro projects. The company’s Vision 2029 target of INR 1,000 crore revenue with more than 18% EBITDA margin sets a clear long-term direction, but the nearer test is execution and stabilisation of new verticals through FY27.