Tinna Rubber and Infrastructure Limited has strengthened its foothold in the Middle East market by injecting additional capital into its wholly owned subsidiary in Oman. The company has contributed OMR 24,750 (approximately ₹58.00 lakhs) as equity share capital to Global Recycle LLC, its Omani subsidiary.

Strategic Expansion

This move underscores Tinna Rubber's commitment to expanding its operations in the Gulf Cooperation Council (GCC) region. The investment aligns with the company's strategy to enhance its presence in international markets and capitalize on the growing demand for recycled rubber products in the Middle East.

Oman Operations

Tinna Rubber's Oman subsidiary has been showing promising performance:

• Operating at 85% capacity utilization
• Expected to contribute approximately ₹30.00 crores to the company's top line in a steady state
• 40% of the output is now sold within the GCC region

Challenges and Solutions

While the Oman operation faced some challenges due to increased raw material prices, the company has taken proactive steps to address this issue:

• Secured consent to import end-of-life tires into Oman
• This measure is expected to help in margin recovery in the second half of the fiscal year

Future Outlook

Gaurav Sekhri, Joint Managing Director of Tinna Rubber, commented on the company's international strategy: "With the plant in Oman and our upcoming plant in Saudi Arabia, we are well-positioned to service the local rubber industry within GCC, parts of Africa, and potentially bring surplus to India if commercially viable."

The company's focus on the GCC market is part of its broader Vision 2028, which aims to:

• Expand from 6 to 10 locations
• Achieve a revenue CAGR of over 25% to reach ₹1,000.00 crores by FY '28
• Increase profitability by over 33%
• Sustain EBITDA margins above 18%
• Achieve a Return on Capital Employed (ROCE) of 30%

This additional investment in the Oman subsidiary is a step towards realizing these ambitious goals and strengthening Tinna Rubber's position in the global recycled rubber market.

Tinna Rubber and Infrastructure Limited (TRIL) has demonstrated resilience in its financial performance for Q2 FY26, achieving strong EBITDA margins despite facing revenue headwinds. The company's strategic focus on higher-value products and selective reduction of low-margin sales have yielded positive results in a challenging market environment.

Financial Highlights

Tinna Rubber and Infrastructure Limited managed to maintain robust EBITDA margins of 18.5% in Q2 and 17% in H1 of FY26, showcasing the company's ability to optimize its operations and focus on profitability. This performance is particularly noteworthy given the revenue challenges faced due to extended monsoon conditions.

Revised Growth Outlook

In light of the current market conditions, TRIL has revised its annual growth guidance. The company now expects a growth rate of 12-15%, adjusting its earlier projections to reflect the impact of external factors on its revenue.

Strategic Initiatives

Vision 2028 Plan

TRIL is advancing its Vision 2028 plan, demonstrating a commitment to long-term growth and expansion. Key components of this plan include:

1. Capital Expenditure: A significant INR 100 crores capex deployment is underway.
2. New Production Facility: Plans for a new rCB (recovered Carbon Black) pyrolysis plant, aimed at enhancing production capabilities.
3. International Expansion: The company is pursuing growth opportunities in:
   • Oman
   • Saudi Arabia
   • South Africa

These strategic moves indicate TRIL's focus on diversifying its geographical presence and expanding its production capacity to drive future growth.

Market Implications

While TRIL faces short-term revenue challenges due to extended monsoon conditions, the company's ability to maintain strong EBITDA margins suggests effective cost management and a robust business model. The revised growth guidance and ongoing strategic initiatives may position TRIL to capitalize on market opportunities once temporary headwinds subside.

Investors and market observers may want to monitor TRIL's progress in implementing its Vision 2028 plan and its ability to sustain strong margins in the face of revenue fluctuations. The company's expansion into international markets could potentially provide new avenues for growth and help mitigate risks associated with regional market conditions.