Tinna Rubber and Infrastructure reported record H1 FY27 performance with a 60% surge in profit to Rs 38 crore. Revenue grew 25% to Rs 313 crore, driven by a 30% rise in tyre crushing volumes. The company is aggressively expanding its recycling footprint with a planned Rs 250 crore investment in Andhra Pradesh and a new subsidiary in Chile to bolster global sourcing. Despite start-up costs and geopolitical headwinds impacting some margins, the company’s net debt declined, and its credit rating was upgraded to CARE BBB (Stable).
Tinna Rubber Reports Record H1 Profit Amid Aggressive Expansion
Profit After Tax (PAT) climbed 60% to Rs 38 crore, while operational income rose 25% to Rs 313 crore for H1 FY27.
Reader Takeaway: Robust volume growth and capacity expansion drive profitability, though geopolitical risks and start-up costs warrant caution.
What just happened
Tinna Rubber and Infrastructure posted strong financial results for the first half of FY27, marked by record profitability on both standalone and consolidated bases. The company reported EBITDA of Rs 63 crore, a 50% increase over the previous year. This growth was underpinned by a 30% rise in tyre crushing volumes, reaching 86,000 TPA.
Why this matters
The results highlight the company's successful execution of its capacity expansion strategy. The commissioning of a new 12,000 TPA PCMB facility and the commencement of commercial sales at its Varale TPO unit show significant operational progress. A reduction in net debt to Rs 111 crore and a credit rating upgrade to CARE BBB (Stable) provide a healthier balance sheet to support future growth.
Strategic Developments
The company is scaling its recycling infrastructure, highlighted by a planned Rs 250 crore investment in Andhra Pradesh for an integrated recycling complex over the next three years. Additionally, the establishment of 'Tinna Rubber Chile SpA' marks a push to secure international sourcing networks for End-of-Life Tyres (ELT).
Risks to watch
Management cited geopolitical uncertainties in the GCC and West Asia as a primary challenge, causing supply chain disruptions that impact project timelines in Saudi Arabia and South Africa. Furthermore, initial investment and stabilization phases for new units like the rCB production line create temporary pressure on near-term margins.
Context metrics
Renewable energy now accounts for 40% of the company's power usage, following a 3x increase in capacity to 4.48 MW. The interest coverage ratio has improved to 9.91x, signaling better financial health compared to the 7.49x reported in FY26. Management has reiterated a long-term goal of hitting Rs 1,000 crore in revenue across 10 locations by 2029.