Tinna Rubber And Infrastructure Limited reported a 75% year-on-year increase in consolidated net profit to ₹205.66 crore for the first quarter ended June 30, 2026, compared to ₹117.41 crore in the same period last year. Revenue from operations rose to ₹1,561.81 crore from ₹1,302.73 crore, while the EBITDA margin expanded to 21.70% from 15.95%, reflecting improved operational efficiency and higher realization from value-added products. The Board of Directors approved the unaudited financial results at a meeting held on July 20, 2026.

Q1 Financial Highlights

The company's standalone net profit for the quarter stood at ₹201.12 crore, up from ₹109.83 crore in Q1 FY26. Standalone revenue from operations increased to ₹1,508.51 crore from ₹1,273.04 crore. Joint Managing Director Gaurav Sekhri stated that the record profitability was driven by systemic optimizations in raw material costs and an increased share of value-added product sales, rather than one-off inventory gains. The results were reviewed by the Audit Committee and are subject to a limited review by the statutory auditors, S S Kothari Mehta & Co. LLP.

Segment Performance and Operations

The Infrastructure segment recorded 33% volume growth and 7% revenue growth in Q1 FY27 on a year-on-year basis, driven by accelerated bituminous road surfacing layer works. The segment secured a 15,000 MT rubberized bitumen processing order scheduled for execution during FY27. The Industrial segment achieved 27% volume growth and 58% revenue growth, supported by momentum in value-added products like Micronized Rubber Powder (MRP) and Reclaimed Rubber (RR). Exports volume delivered robust 46% year-on-year growth despite global economic headwinds.

The Consumer segment volumes declined by 20% due to sharp increases in raw material prices and import-export disruptions, while the Steel segment maintained stable revenue supported by improved realizations. India's tyre crushing volumes grew by 35% year-on-year to 44,238 TPA in Q1 FY27, with capacity utilization standing strong at 88%. The Tyre Pyrolysis Oil (TPO) facility at Varale commenced trial runs and is expected to commence commercial sales in Q2 FY27. Recovered Carbon Black (rCB) production is scheduled to commence in Q3 FY27.

Strategic Guidance and Expansion

Management provided full-year guidance for FY27, targeting revenue between ₹670 crore and ₹700 crore and an EBITDA margin of 18% to 20%. While Q1 margins reached 22%, management cautioned that front-ended costs from new expansions in South Africa and Saudi Arabia would impact blended margins. The company plans to capitalize approximately ₹60 crore of its ₹100 crore capex target over FY27–FY28 in the current fiscal. Renewable energy contributed 51% of total power consumption in Q1 FY27, supported by commissioned rooftop solar installations at Gummidipoondi (999 kWp) and Varale (2,218 kWp).

International Projects Update

Operations at the South Africa plant have begun, with Phase 1 capex completed and breakeven expected by the end of Q2 FY27. The Oman plant ran at 78% capacity utilization, contributing approximately ₹9 crore in revenue, and achieved an improved EBITDA margin of 8.53% in Q1 FY27. The company has formed Tinna Rubber Arabia Ltd to set up a tyre recycling plant in Saudi Arabia with an initial capacity of 24,000 MT per annum. A 13,000-square-metre plot has been allocated, with construction expected to begin in mid-FY27, subject to normalization of the situation in the Middle East.

What the Numbers Show

The significant margin expansion to 21.70% demonstrates the successful transition toward high-margin value-added products, particularly MRP and reclaimed rubber, which saw volume growth of 28% and 37% respectively. However, the divergence between the Q1 margin of 22% and the full-year guidance of 18-20% highlights the near-term cost pressures associated with international expansions. The monetization of ₹25 crore worth of Extended Producer Responsibility (EPR) credits, accrued in previous years, improved cash flows but did not impact current quarter earnings, as confirmed by CFO Abhay Kumar.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE015C01016/8617f5be-2714-4f88-886b-3e7c80a3714b.pdf

Tinna Rubber And Infrastructure Limited has expanded its international operations by incorporating a wholly owned subsidiary in the Republic of Chile. The new entity, named TINNA RUBBER CHILE SpA, was established in Santiago to strengthen the company's global supply chain for end-of-life tyres (ELTs) and other waste materials. This strategic move aims to enhance the company's global footprint by entering the waste management and recycling sector in the South American market.

The incorporation and registration formalities for the entity have been completed. However, certain post-incorporation procedural and regulatory compliances required for the commencement of commercial operations are currently underway. The company stated that the proposed capital infusion into the subsidiary will be executed in due course following the receipt of necessary approvals and the completion of applicable legal formalities.

Subsidiary Details and Capital Structure

TINNA RUBBER CHILE SpA has been incorporated with an authorised share capital of Chilean Pesos 500,000,000. Tinna Rubber And Infrastructure Limited will hold 100% of the share capital in the subsidiary. The ownership structure consists of 50,000,000 ordinary registered shares of a single series, each with a nominal value of CLP 10. The subscription to this share capital, equivalent to convertible Indian rupees, will be conducted in one or more tranches.

Business Objectives and Consideration

The primary objective of the new subsidiary is to carry out the business of recycling and processing end-of-life tyres, plastic waste and scrap, battery waste and scrap, and other allied waste management activities. The consideration for the acquisition involves cash and kind, specifically the capitalisation of exports or payments due. The subsidiary operates within the waste management and recycling industry, focusing on the collection of non-hazardous waste and material recovery. The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.