Gayatri Rubbers and Chemicals Limited has received a sample purchase order from Kinet Railway Solutions for the supply of EPDM Spacers. These components are critical for the interior assembly of Vande Bharat Sleeper trainsets, serving to reduce vibration transmission and minimise cabin noise. The order marks the company's first commercial engagement with Kinet Railway Solutions, an Indo-Russian joint venture formed between Transmashholding (TMH) and Rail Vikas Nigam Limited (RVNL).

The EPDM Spacers will be manufactured at the company's Faridabad facility. Management indicated that a successful execution of this sample supply is expected to provide access to a broader portfolio of rubber components required across the Vande Bharat Sleeper programme. The company views this initial order as an opportunity to demonstrate its technical capabilities and quality standards.

Operational Capacity

The company's manufacturing operations in Faridabad are structured to support this new engagement. The first plant, which will produce the EPDM Spacers, has a total capacity of 200MT and is currently operating at 160MT, representing approximately 80% utilisation. This facility produces specialised rubber components for the industrial, architectural, automotive, and railway sectors.

A second plant is dedicated solely to producing niche and specialized rubber products for Indian Railways, specifically UIC Vestibules and Decoupling Rubber. This focused infrastructure supports the company's ability to meet sector-specific demands.

About Kinet Railway Solutions

Kinet Railway Solutions was incorporated in 2023 as a strategic partnership between Transmashholding and Rail Vikas Nigam Limited. The joint venture was established with the primary mandate of manufacturing and maintaining Vande Bharat Sleeper trainsets for Indian Railways. The company combines TMH's global engineering expertise with RVNL's understanding of India's railway infrastructure.

The venture operates a primary manufacturing facility in Latur, Maharashtra, spread across approximately 351 acres. In addition to manufacturing, Kinet Railway Solutions holds a maintenance contract for Vande Bharat Sleeper Trainsets for a period of 35 years.

Gayatri Rubbers and Chemicals Limited has submitted the transcript of its H2 & FY26 Earnings Conference Call to the National Stock Exchange of India Limited, pursuant to Regulation 30 read with Clause 15 of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call was hosted by ConfideLeap Partners on May 05, 2026, at 4:00 P.M. IST, and the transcript was filed on May 08, 2026. The company's Managing Director, Mr. Shilp Chotai, represented the management during the call. The transcript has been uploaded on the company's website and is accessible at https://gayatrirubberchemicals.com/investors/announcements.html .

FY26 Financial Highlights

Managing Director Shilp Chotai described FY26 as a landmark year for the organisation, citing strong revenue growth and a near-doubling of profitability. The company's strategic pivot toward high-barrier rubber solutions and specialised products was cited as the primary driver of margin expansion. The following table summarises the key financial metrics discussed during the call:

Management confirmed that the 21.11% EBITDA margin level is sustainable, attributing it to the increased share of high-margin railway and smart meter products. The company also indicated it expects PAT margins of 13 to 17% over the coming two years. On borrowings, management noted a potential increase of ₹1.5 to ₹2 crore during the year to support working capital and inventory requirements, with existing borrowings at approximately ₹6 to ₹7 crore.

Business Segment Overview

The company's revenue is currently distributed across three primary verticals — railways (55%), smart meters (20%), and architectural and automobile (~25%). Management indicated a plan to increase the railway share by 5 to 10% and the smart meter share by a similar quantum, while maintaining diversification across sectors. Segment-wise EBITDA margins as disclosed by management are presented below:

Within the railway segment, Gayatri Rubbers holds Class 1 supplier status and manufactures 65 out of 75 rubber products required for a single railway coach. The company recently launched specialised fire retardant silicone mobile holders for Vande Bharat and Amrit Bharat coaches, and received a ₹1.2 crore order from BEML for rubber gaskets — a development management described as establishing the vendor code necessary for large-scale future engagements. Management noted that the company's vendor rating with Indian Railways stands at 92%, and that its quoted rates are 20 to 25% higher than competitors, with orders secured on the basis of quality and timely supply.

In the smart meter segment, the company operates as a single-source vendor to Genus Power and HPL Power, supplying specialised 3mm neoprene fire retardant rubber, with agreements in place until 2030. The company has 14 production lines dedicated to this product and maintains 20% free utilisation capacity. Management confirmed active outreach to Secure Meters as a potential new client, with Adani also identified as a prospective addition to the client base. The current order book for smart meters stands at approximately ₹12 crore annually, with revenue from this segment growing 15 to 20% year on year.

Plant Utilisation and Capacity

The company operates two manufacturing facilities, both located in Faridabad, Haryana, within 1 km of each other. Key operational parameters for each plant are summarised below:

Management clarified that reaching 90 to 95% utilisation at Plant 1 requires no additional capex, only labour team expansion and additional shift hours. Plant 2, which focuses on RDSO-approved specialised railway products, is expected to reach 70 to 80% utilisation in approximately 1.5 to 2 years, contingent on completing the RDSO developmental stage and transitioning to regular supplier status within 12 months.

Growth Strategy and New Verticals

Management outlined four key growth pillars for the next phase of expansion, with R&D already underway across all verticals. The company targets revenue of ₹55 crore in FY27 and ₹70 to ₹75 crore by FY28. Key strategic initiatives include entry into bridge pads and solar industry components, with bridge pads expected within six to eight months. R&D budget allocations as disclosed are approximately 3 to 5% for solar rubber and 5 to 7% for bridge pads. Export market entry is planned for 2027, supported by the India-Europe Free Trade Agreement, which eliminates the 6.5% tariff on the company's products. The intercar gangway product and EPDM bridge pads were identified as key pipeline items expected to contribute to revenue targets. Management also noted that in the railway pad segment, approximately 50 to 53 out of 70 registered vendors are blacklisted, leaving 15 to 17 active vendors and presenting an opportunity for entry.

Source: None/Company/INE0LVM01018/78eaa243eda3410e.pdf