Tinna Rubber Q2 Profit Jumps 45% Amid Ambitious Expansion Plans

Revenue grew 31% to INR 157 crore; PAT rose 45% to INR 17 crore.

Reader Takeaway: Strong operational margins and debt reduction fuel growth, though international project delays remain a key monitorable.

What just happened

Tinna Rubber and Infrastructure Limited delivered robust Q2 FY27 results. Consolidated revenue reached INR 157 crore, up from INR 120 crore in the same period last year. Profit After Tax (PAT) grew by 45% to INR 17 crore, supported by an EBITDA margin of 18.8%. For the first half of the year, the company saw PAT surge by 60% to INR 38 crore, reflecting improved operational efficiency.

Why this matters

The company is aggressively moving toward its Vision 2029 target of INR 1,000 crore revenue. A key highlight is the planned INR 250 crore investment in an integrated rubber and plastics recycling facility in Andhra Pradesh. Additionally, the company has improved its balance sheet, reducing debt to INR 111 crore and achieving an improved interest coverage ratio of 9.91.

Business and Operational Updates

Capacity expansion remains a priority. A 3,500 TPA micronized rubber powder line is set for commissioning in Q3 FY27. Internationally, the company continues to scale, with the Oman plant operating at 90% utilization. However, the South Africa Phase 2 project faces a 3-4 month delay due to supply chain challenges.

Risks to watch

Investors should monitor the Haryana government's interest in acquiring the land housing the Panipat facility. While management claims the potential impact is minimal and compensations would be above book value, it represents a regulatory hurdle. Furthermore, geopolitical and supply chain risks in Saudi Arabia and South Africa may impact future project timelines.

What to track next

The company has reaffirmed its FY27 guidance of INR 700 crore revenue and INR 70 crore PAT. Stakeholders should track the progress of the Andhra Pradesh facility construction and the resolution of the Panipat land matter.