Indag Rubber Limited reported a 47% year-on-year increase in net profit to ₹12.38 crore for the financial year ended March 31, 2026. Profitability improved despite a 5.1% decline in total revenue, which stood at ₹224.81 crore for the year. The company’s focus on operational excellence resulted in an EBITDA growth of 36% to ₹22.43 crore, with margins expanding by 300 basis points to 10.0%. For the quarter ended March 31, 2026, profit after tax more than doubled to ₹3.55 crore from ₹1.65 crore in the corresponding period of the previous year.

The Board of Directors recommended a final dividend of ₹1.50 per equity share of face value ₹2 each for FY26. This takes the total dividend for the year to ₹2.40 per share, inclusive of the interim dividend of ₹0.90 per share paid in November. The dividend is subject to shareholder approval at the ensuing Annual General Meeting.

Financial Performance

Total revenue for Q4FY26 grew 9.2% year-on-year to ₹63.16 crore, while EBITDA surged 81% to ₹6.33 crore. The EBITDA margin for the quarter improved significantly to 10.0% from 6.0% in the same period last year. The company generated ₹19.7 crore in operating cash flow during FY26, up from ₹6.5 crore in FY25, aided by a reduction in the working capital cycle.

Operational Highlights

Commenting on the results, Mr. Vijay Shrinivas, CEO & Whole Time Director, attributed the revenue moderation in FY26 to weaker State Transport Undertaking (STU) volumes in Q1. However, profitability recovered strongly due to disciplined credit control and optimized raw material supply chain management. The company noted that the 2026 West Asia escalation has elevated input costs, which it is managing through price pass-through and product-mix optimisation.

The company’s subsidiary, Millenium Manufacturing Systems, achieved a milestone in FY26 by progressing from factory homologation to securing its first commercial serial order for power conversion systems used in Battery Energy Storage Systems (BESS).

Indag Rubber Limited has approved a strategic investment of ₹2.30 Crores to acquire a 51% stake in its subsidiary, Millenium Manufacturing Systems Private Limited. The Board of Directors sanctioned the proposal on May 28, 2026, to support the investee company's business operations and growth plans. The acquisition will be executed through the subscription of equity and preference shares at face value, with completion scheduled on or before March 31, 2027.

The transaction falls under the ambit of related party transactions as the investee company is a subsidiary. The remaining 49% of the paid-up share capital will be subscribed by two other entities in equal proportion, which are related parties due to common control of the promoters. The deal was conducted at arm's length and was recommended by the Audit Committee.

Millenium Manufacturing Systems Private Limited operates in the green energy sector, specifically manufacturing power conversion systems (PCS) for battery energy storage systems (BESS) and power electronics. The entity was incorporated on April 9, 2023, and maintains its presence exclusively in India. No specific governmental or regulatory approvals are required for this acquisition.

The financial performance of the investee company over the past three years shows a fluctuating turnover. In FY 2025-26, the turnover was recorded at ₹26.48 Lakhs, a decrease from ₹360.14 Lakhs in the previous fiscal year FY 2024-25. The entity reported no turnover in FY 2023-24.

Financial History of Millenium Manufacturing Systems Private Limited