Tinna Rubber Records 60% Profit Growth in H1 FY27

Consolidated PAT reached Rs 38 crore, while consolidated revenue climbed to Rs 313 crore.

Reader Takeaway: Strong operating leverage drives 60% profit growth, while new Rs 250 crore Andhra Pradesh facility anchors future scale.

What just happened

Tinna Rubber and Infrastructure has delivered a robust performance for the first half of FY27. Consolidated EBITDA surged 50% year-on-year to Rs 63 crore, while consolidated PAT rose 60% to Rs 38 crore on revenues of Rs 313 crore. The company also saw standalone EBITDA margins exceed 20%.

Why this matters

The results highlight the company's ability to drive bottom-line growth faster than top-line expansion, reflecting improved operating efficiency. Furthermore, CARE Ratings upgraded the company's long-term credit facilities to CARE BBB (Stable), signaling improved financial health. Total debt has been reduced to Rs 111 crore, strengthening the balance sheet.

Strategic Updates

Operational milestones include a capacity expansion for Micronized Rubber Powder (MRP) reaching 20,000 MTPA by Q3 FY27. The company's Polymer Composites & Masterbatch division showed significant traction, with revenues tripling to Rs 27 crore in H1. A new integrated recycling facility in Andhra Pradesh, with a planned investment of Rs 250 crore over three years, is set to expand operations into plastic and pyrolysis sectors.

Vision 2029

Management has introduced a long-term growth roadmap targeting Rs 1,000 crore in annual revenue by 2029. This vision focuses on maintaining an EBITDA margin above 18% and an ROCE above 30%, with expansion plans to grow from 8 to 10 operational locations.

Risks to watch

Success remains dependent on the timely execution of the Rs 250 crore integrated facility and the commissioning of the current capacity expansion by Q3 FY27. Any regulatory shifts in end-of-life tyre (ELT) sourcing could also impact operations, prompting the company's recent expansion into Chile to secure supply chains.