Tolins Tyres , a leading manufacturer of tyre retreading products and tyres, has announced an ambitious growth strategy focusing on export-led expansion and manufacturing capacity enhancement. The company aims to achieve over 25% year-on-year growth through a series of strategic initiatives.

Export-Led Growth Strategy

Tolins Tyres is pursuing a robust export-led growth strategy with a new product range in off-road and industrial tyres. The company is targeting global markets through distribution partnerships, positioning itself for significant business expansion. This move is expected to diversify the company's revenue streams and reduce dependence on domestic markets.

Manufacturing Capacity Expansion

To support its growth plans, Tolins Tyres is expanding its manufacturing capacity in Kerala. This expansion is crucial for meeting the anticipated increase in demand, both domestically and internationally. The company currently operates three manufacturing facilities spread across an area of 221,214 square feet – two in Kalady, Kerala, and one in Ras Al Khaimah, UAE.

Focus on Research and Development

Tolins Tyres is intensifying its R&D efforts, particularly in developing high-performance retread compounds. This focus on innovation is expected to enhance the company's product offerings and maintain its competitive edge in the market.

Financial Performance

Despite facing challenges in the second quarter, Tolins Tyres has shown resilience in its financial performance:

While the company experienced a slight increase in revenue, there was a decline in profitability metrics compared to the same period last year. This could be attributed to various factors, including market conditions and expansion-related expenses.

Management Commentary

Dr. KV Tolin, Chairman and Managing Director of Tolins Tyres, commented on the company's performance and outlook: "Despite a challenging Q2, we achieved year-on-year growth in the first half, driven by robust demand across our retread and new tyre product lines. The recent GST reduction on tractor and farm tyres from 18% to 5% has improved market sentiment and sparked a rebound in order inquiries."

He added, "We have launched a new line of tractor rear tyres, which will start contributing from Q3 onward and is expected to be a key growth lever in the agricultural segment. Our strategic initiatives are also bearing fruit on the customer front, with new institutional customers and expanded territories diversifying our revenue streams."

Industry Outlook

The tyre industry in India is poised for growth, with positive outlooks across various vehicle segments:

• The domestic two-wheeler vehicle market is expected to reach 25-27 million units by FY29.
• Passenger vehicle domestic demand is projected to grow to 5.7 million units by FY29.
• The commercial vehicle segment is forecasted to reach 1,150-1,270 thousand units by FY29.
• Tractor industry sales are expected to increase by 4-6% between fiscals 2024 to 2029.

These industry trends provide a favorable backdrop for Tolins Tyres' growth aspirations.

Conclusion

Tolins Tyres' focus on export expansion, capacity enhancement, and R&D positions the company well to capitalize on the growing domestic and international tyre markets. While short-term challenges persist, the company's strategic initiatives and the positive industry outlook suggest potential for achieving its ambitious growth targets in the coming years.

Tolins Tyres Limited , a prominent player in the tyre and tread rubber industry, has released its financial results for the second quarter of fiscal year 2026, revealing a decline in both revenue and profitability compared to the same period last year.

Financial Performance

For Q2 FY26, Tolins Tyres reported:

The company experienced a 14.04% year-over-year decrease in revenue, which fell to ₹661.00 crore from ₹769.00 crore in Q2 FY25. This decline was accompanied by a significant drop in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which decreased by 40.94% to ₹90.00 crore from ₹152.40 crore in the corresponding quarter of the previous year.

The EBITDA margin contracted sharply, falling by 621 basis points to 13.62% from 19.83% in Q2 FY25. Net profit for the quarter stood at ₹70.00 crore, down 27.08% from ₹96.00 crore in the same period last year.

Management Commentary

Dr. KV Tolin, Chairman and Managing Director of Tolins Tyres, provided insights into the company's performance and outlook:

"Despite a challenging Q2, we achieved year-on-year growth in the first half of FY26, driven by robust demand across our retread and new tyre product lines. In Q2, some customers delayed purchases ahead of the anticipated GST revision on tyres, which temporarily impacted our sales. However, the government's GST cut on tyres – especially the reduction of GST on tractor and farm tyres from 18% to 5% – is a tailwind that has already improved market sentiment and sparked a rebound in order inquiries."

Dr. Tolin expressed optimism about future prospects, stating, "We are confident that the pent-up demand from Q2 will convert to sales in the coming quarters. Additionally, we have launched a new line of tractor rear tyres, which will start contributing from Q3 FY26 onward and is expected to be a key growth lever in the agricultural segment."

Strategic Initiatives and Market Position

The company has been focusing on strategic initiatives to strengthen its market position:

1. Product Diversification: Tolins Tyres has introduced a new line of tractor rear tyres, aiming to capitalize on opportunities in the agricultural segment.

2. Customer Base Expansion: During H1 FY26, the company broadened its client base by onboarding new institutional customers and expanding into new territories.

3. Improved Client Mix: The diversification of revenue streams has resulted in a healthier order pipeline for specialized tyres and tread rubber.

Industry Outlook and Company Strategy

The management remains optimistic about the company's prospects in the second half of FY26. Dr. Tolin highlighted, "With deferred demand from Q2 starting to flow through, an enhanced product range, and a better-aligned customer mix, Tolins is well-positioned to capitalize on the industry uptick."

The company expects easing input costs and ongoing cost discipline to support margin improvement in the coming quarters. The focus remains on driving robust performance and creating value for all stakeholders.

Conclusion

While Tolins Tyres faced headwinds in Q2 FY26, the management's proactive approach to product development, market expansion, and cost management suggests a potential for recovery in the latter half of the fiscal year. Investors and industry observers will be keenly watching how the company navigates the evolving market dynamics and capitalizes on the anticipated rebound in demand.