Tinna Rubber Q3 Skyrockets: Revenue Up 13%, PAT Soars 63%; IOCL Order Boosts Outlook

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AuthorAarav Shah|Published at:
Tinna Rubber Q3 Skyrockets: Revenue Up 13%, PAT Soars 63%; IOCL Order Boosts Outlook
Overview

Tinna Rubber & Infrastructure Limited reported a robust Q3 FY26 with consolidated revenue up 13% YoY to ₹139 Cr and PAT surging 63% to ₹13 Cr, driven by strong margin expansion. However, 9MFY26 consolidated PAT dipped 1% due to international JV start-up costs. The company unveiled 'Vision 2028' targeting ₹1,000 Cr revenue by FY28 and over 18% EBITDA margins. A key highlight was securing a ₹75.79 Cr work order from Indian Oil Corporation Limited for crumb rubber modifier supply.

Tinna Rubber & Infrastructure Q3 FY26: Strong Growth Fueled by Margin Expansion and IOCL Order

Tinna Rubber & Infrastructure Limited has delivered a commendable performance in its third quarter and nine months ended December 31, 2025 (Q3 & 9MFY26), showcasing significant year-on-year improvements in revenue and profitability for the quarter. The company's strategic initiatives and recent order wins point towards a positive growth trajectory.

📉 The Financial Deep Dive

Performance Snapshot (Consolidated Q3 FY26 vs. Q3 FY25):

  • Revenue from Operations: Increased by a robust 13% YoY to ₹139 Cr.
  • EBITDA: Surged by 53% YoY to ₹23 Cr.
  • EBITDA Margin: Expanded by 4.2 percentage points to 16.3%.
  • Profit After Tax (PAT): Jumped 63% YoY to ₹13 Cr.
  • PAT Margin: Improved to 9.2%.
  • Diluted EPS: Rose 52% to ₹7.22.

Nine-Month Performance (9MFY26 vs. 9MFY25):

For the nine months ended FY26, consolidated revenue grew by 3% to ₹389 Cr, with EBITDA increasing by 11% to ₹65 Cr and margins expanding by 110 basis points to 16.7%. However, consolidated PAT saw a marginal 1% decline to ₹36 Cr, attributed by the company to initial start-up costs incurred from its international joint ventures in South Africa and Saudi Arabia. Standalone 9MFY26 results, in contrast, displayed healthy growth with EBITDA and PAT rising by 12.5% each.

The "So What?" & Forward View:

The company has outlined an ambitious 'Vision 2028' aimed at achieving ₹1,000 Cr in revenue by FY28, projecting a 25%+ revenue CAGR. This vision also targets an increase in EBITDA margins to exceed 18% (from 15% in FY25) and ROCE above 30% (from 26% in FY25). Key growth drivers are expected to come from the infrastructure, industrial, and consumer segments, with a particular focus on exports, aiming for a 30% volume increase by the end of Q4 FY26. Expansion into Saudi Arabia and South Africa, product portfolio diversification, and R&D investments are strategic priorities.

Financial Health & Capital Allocation:

Capital expenditure of ₹79 Cr was completed in 9M FY26, with an additional ₹50 Cr planned for FY26-FY27. Funds raised through a Qualified Institutional Placement (QIP) of ₹78.7 Cr have been strategically deployed, with ₹23 Cr used for debt reduction, ₹22.42 Cr for Pyrolysis & Recovered Carbon Black (rCB) projects, and ₹10.5 Cr for solar power expansion. The balance sheet reflects improved financial health, evidenced by a reduced Net Debt to Equity ratio in H1 FY26.

Strategic Milestones:

A significant achievement during the period was securing a work order from Indian Oil Corporation Limited (IOCL) in January 2026, valued at approximately ₹75.79 Cr (including GST), for the supply of Crumb Rubber Modifier. This order, to be executed over two years, strengthens the company's position in the domestic market.

🚩 Risks & Concerns:

While the outlook is positive, potential risks include volatility in End-of-Life Tyre (ELT) input costs, global economic headwinds, and foreign exchange fluctuations. The initial start-up losses from international ventures in South Africa and Saudi Arabia are a noted concern impacting the consolidated 9M PAT.

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