Tolins Tyres Limited reported a consolidated net profit of ₹35.69 crore for the financial year ended March 31, 2026, a decline of 7.72% from ₹38.67 crore in the previous year. The company's revenue from operations for FY26 rose 11.86% to ₹327.12 crore, compared to ₹292.45 crore in FY25. Despite the revenue growth, profitability was impacted by a contraction in EBITDA margins, which fell 519 basis points to 14.61%. The Board of Directors approved the audited financial results at a meeting held on May 28, 2026.

Financial Performance

For the quarter ended March 31, 2026, the company posted a net profit of ₹8.94 crore, a decrease of 3.67% from ₹9.28 crore in the corresponding quarter of the previous year. Quarterly revenue from operations stood at ₹77.99 crore, while total revenue was ₹78.92 crore. The EBITDA for Q4FY26 declined 17.27% to ₹11.22 crore, with margins shrinking to 14.39%. On a standalone basis, the net profit for the full year was ₹15.04 crore, down from ₹20.76 crore in the prior year.

Operational Metrics

The company’s net profit margin for the consolidated year stood at 10.91%, while the return on equity (ROE) was 9.88%. The debt-equity ratio remained low at 0.03 times. The earnings per share (EPS) for the year was ₹9.03 on a consolidated basis. Total expenditure for the year increased to ₹279.32 crore from ₹234.54 crore in the previous year, driven largely by rising raw material costs which stood at ₹244.67 crore.

Board Appointments

The Board appointed M/s. Joseph Cyriac & Company, Chartered Accountants, as the internal auditors for the financial year 2026-27. Additionally, M/s. BBS & Associates, Cost Accountants, were appointed as the cost auditors for FY27. The Board also reviewed and updated the Policy on materiality of Related Party Transactions to align with SEBI regulations.

Earnings Conference Call

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Tolins Tyres Limited has made available the audio recording of the earnings conference call held on June 1, 2026, at 5:30 P.M. IST. The recording discusses the audited financial results for the quarter and year ended March 31, 2026, and can be accessed on the company's website.

Management attributed the margin pressure primarily to GST revisions, where the tax rate on new tyres was reduced to 18% and agricultural tyres to 5%, while retreading materials remained taxed at 18%. This policy change reduced the price competitiveness of retreading. The company stated that the industry association has approached the government to reduce GST on retread materials to 5%.

Regarding operations, the company produced 5,35,870 tyres in FY26, a 36% increase over the previous year's 3,93,253 units. However, revenue growth lagged volume growth due to pricing dynamics. The Ras Al Khaimah plant in the UAE, with a capacity of 1,200 metric tons, is currently operating at less than 50% utilization due to geopolitical uncertainties and market conditions. Management expects to maintain FY26 performance levels in FY27, contingent on market stabilization by Q2.

Brickwork Ratings India Private Limited (BWR) has submitted the Third Monitoring Agency Report for Tolins Tyres Limited, covering the quarter ended March 31, 2026. The report, bearing reference number BWR/2026-27/IPM/TTL/03 and dated May 06, 2026, was prepared pursuant to Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and the Monitoring Agency Engagement Letter dated August 27, 2025. It was addressed to Mr. Sojan C S, Chief Financial Officer of Tolins Tyres Limited, and signed by Mr. Niraj Kumar Rathi, Senior Director, Ratings at Brickwork Ratings.

Issue Details and Funds Raised

Tolins Tyres Limited raised a total of ₹230.00 Crore through its initial public offering. The issue comprised a Fresh Issue of equity shares and an Offer for Sale, with the anchor investor period running from September 06, 2024 to September 11, 2024, and the general public issue period from September 09, 2024 to September 11, 2024. The following table summarises the issue structure:

The promoters of the company are Dr. Kalampambil Varkey Tolin and Jerin Tolin, and the company operates in the Tyre Industry.

Utilisation of Issue Proceeds

The Monitoring Agency confirmed that all utilisation of issue proceeds is in accordance with the disclosures made in the Offer Document. No material deviations were observed, the means of finance for the disclosed objects have not changed, and no major deviation was noted over earlier monitoring agency reports. All government and statutory approvals related to the objects have been obtained. The following table details the progress in utilisation of the Fresh Issue proceeds as at March 31, 2026, verified by P. T. Joseph & Co, Chartered Accountants vide CA certificate dated May 04, 2026:

The above details were verified against the company statement dated April 24, 2026. Negative unutilised amounts reflect instances where actual utilisation exceeded the originally projected cost for certain objects.

Deployment of Unutilised Proceeds and General Corporate Purpose

The company has fully utilised the issue proceeds towards the stated objects. The remaining balances in the issue-related accounts represent interest accrued on the issue proceeds and are available for future utilisation. The details of these balances as at March 31, 2026 are as follows:

With respect to General Corporate Purpose, an amount of ₹1.58 Crore was utilised during the quarter ended March 31, 2026, bringing total utilisation under this head to ₹15.68 Crore, fully exhausting the allocated amount. As per the prospectus dated September 11, 2024, general corporate purpose includes meeting ongoing general corporate purposes or contingencies, strengthening marketing capabilities and brand building exercises, enhancing technology-related infrastructure, strategic initiatives, and acquisition and/or funding any shortfall in any of the cost of objects.

Implementation Timeline and Compliance

No delays in the implementation of any of the stated objects were reported. The Monitoring Agency confirmed that there are no unfavourable events affecting the viability of the objects, no favourable events materially improving viability, and no other relevant information that may materially affect investor decision-making. The report was prepared based on bank statements, the company's letter, CA certificates, and invoices, with CA certification provided by P. T. Joseph & Co, Chartered Accountants. As per the prospectus dated September 11, 2024, any estimated utilisation of net proceeds not completely met in a scheduled fiscal year may be utilised in the next fiscal year, as determined by the Board in accordance with applicable laws.