Tolins Tyres Q2 revenue rises 43% as profit falls 7%

Tolins Tyres Limited reported consolidated revenue from operations of Rs 94.718 crore for the quarter ended 30 September 2026, up 43% year on year, while profit after tax fell 7% to Rs 6.497 crore. India revenue rose 62% to Rs 84.535 crore, more than offsetting a 27% decline in United Arab Emirates revenue.

How did Tolins Tyres perform in Q2 2026?

Tolins Tyres increased quarterly sales and profit before tax, but profit after tax was lower than a year earlier. Revenue from operations rose from Rs 66.103 crore in the quarter ended 30 September 2025 to Rs 94.718 crore in Q2 2026, while total income increased to Rs 95.162 crore from Rs 66.849 crore. Profit before tax rose to Rs 8.613 crore from Rs 8.157 crore, whereas profit after tax declined from Rs 6.952 crore to Rs 6.497 crore.

The increase in expenses broadly matched the sales expansion. Total expenses rose to Rs 86.549 crore from Rs 58.692 crore, and cost of materials consumed increased by Rs 33.048 crore to Rs 81.585 crore. Employee benefits expense rose to Rs 4.819 crore from Rs 4.081 crore, while total tax expense increased to Rs 2.116 crore from Rs 1.205 crore, including Rs 1.989 crore of current tax and Rs 0.113 crore of prior-period tax.

Sequentially, revenue grew from Rs 79.266 crore in the quarter ended 30 June 2026 and profit after tax rose from Rs 6.190 crore. However, the reported net profit ratio, defined as profit after tax divided by revenue from operations, declined to 6.86% from 7.81% in the preceding quarter and 10.52% a year earlier.

Why did Tolins Tyres’ reported margin decline?

Tolins Tyres’ reported net profit ratio declined because material consumption increased faster than revenue and tax expense increased. Material consumption represented Rs 81.585 crore against revenue of Rs 94.718 crore in Q2 2026, compared with Rs 48.537 crore against revenue of Rs 66.103 crore in Q2 2025. The filing does not provide a separate explanation of input-cost movements.

Other income fell to Rs 0.444 crore from Rs 0.746 crore, while finance costs declined to Rs 0.340 crore from Rs 0.459 crore. Other expenses also decreased to Rs 3.734 crore from Rs 3.963 crore, but those reductions did not offset the higher materials charge. Depreciation and amortisation increased to Rs 1.102 crore from Rs 1.071 crore.

For the half year ended 30 September 2026, revenue rose 12% to Rs 173.984 crore from Rs 155.846 crore, but profit after tax declined 22% to Rs 12.687 crore from Rs 16.256 crore. The half-year net profit ratio was 7.29%, compared with 10.43% in the corresponding six months of 2025, while profit before tax declined to Rs 16.493 crore from Rs 20.903 crore.

Which market drove Tolins Tyres’ Q2 revenue growth?

Tolins Tyres’ India segment drove the Q2 revenue increase, while the United Arab Emirates, or UAE, segment reported lower revenue and segment result. India revenue rose 62% to Rs 84.535 crore from Rs 52.076 crore, an increase of Rs 32.459 crore. UAE revenue fell 27% to Rs 10.183 crore from Rs 14.027 crore, partly offsetting the Indian increase.

India segment result rose to Rs 7.388 crore from Rs 5.468 crore, while UAE segment result fell to Rs 1.565 crore from Rs 3.148 crore. Total segment result consequently increased to Rs 8.953 crore from Rs 8.616 crore. After finance costs of Rs 0.340 crore, consolidated profit before tax was Rs 8.613 crore.

The half-year comparison showed the same geographic split. India revenue increased to Rs 153.813 crore from Rs 129.961 crore, while UAE revenue declined to Rs 20.171 crore from Rs 25.885 crore. India segment result was Rs 14.198 crore, below Rs 15.102 crore a year earlier, and UAE segment result fell to Rs 2.948 crore from Rs 6.594 crore.

What changed in Tolins Tyres’ balance sheet and cash flow?

Tolins Tyres’ total assets rose to Rs 426.601 crore at 30 September 2026 from Rs 392.552 crore at 31 March 2026. Trade receivables increased to Rs 165.853 crore from Rs 128.484 crore, while property, plant and equipment increased to Rs 32.979 crore from Rs 29.597 crore. Inventories declined slightly to Rs 178.853 crore from Rs 180.882 crore.

The receivables increase affected operating cash flow. For the half year ended 30 September 2026, higher trade receivables used Rs 37.369 crore of cash, compared with Rs 13.959 crore in the corresponding half of 2025. Net cash used in operating activities was Rs 2.153 crore, compared with Rs 13.955 crore used a year earlier, helped by a Rs 20.784 crore increase in trade payables and a Rs 2.028 crore inventory reduction.

Current borrowings increased to Rs 15.302 crore at 30 September 2026 from Rs 10.313 crore at 31 March 2026, and non-current borrowings rose to Rs 0.626 crore from Rs 0.520 crore. Total equity increased to Rs 374.168 crore from Rs 361.242 crore. The consolidated debt-equity ratio was 0.04 times at 30 September 2026, compared with 0.03 times at 31 March 2026.

Cash and cash equivalents declined to Rs 1.852 crore from Rs 4.415 crore over the half year. Tolins Tyres used Rs 4.853 crore in investing activities, including Rs 5.444 crore for property, plant and equipment purchases, while financing activities generated Rs 4.443 crore. Capital work-in-progress stood at Rs 9.274 crore at 30 September 2026, down from Rs 12.370 crore at 31 March 2026, without project details in the filing.

How were Tolins Tyres’ consolidated results reviewed?

Tolins Tyres’ unaudited consolidated results were reviewed by the audit committee and approved by the board on 14 November 2026. The independent auditor said nothing had come to its attention to indicate that the results failed to disclose required information or contained a material misstatement, based on its review procedures.

The consolidated group includes Tolin Rubbers Private Limited, Tolins Tyres LLC in Ras Al Khaimah, UAE, and Terra Rubber Private Limited, incorporated in October 2025. The auditor relied on other auditors’ reviews for the UAE subsidiary and Tolin Rubbers, while reviewing management’s conversion of UAE financial statements into Indian Accounting Standards, or Ind AS.

Conclusion

Tolins Tyres delivered substantial Q2 revenue growth, led by India, but the higher sales did not translate into higher profit after tax. Revenue increased by Rs 28.615 crore year on year, while material consumption increased by Rs 33.048 crore and UAE segment result declined by Rs 1.583 crore. These movements coincided with a lower net profit ratio of 6.86%.

The next results will show whether India revenue can sustain growth above the Rs 84.535 crore recorded in Q2 and whether UAE revenue recovers from Rs 10.183 crore. Receivables, which rose to Rs 165.853 crore and absorbed Rs 37.369 crore of half-year operating cash flow, are also an unresolved balance-sheet movement to monitor; the filing gives no revenue target, margin target or project completion schedule.