Indag Rubber Limited Reports Strong Q3FY26 Performance with 129% EBITDA Growth
Indag Rubber Limited reported strong Q3FY26 results with 5% YoY revenue growth to Rs. 58.7 crore, EBITDA surge of 129% to Rs. 6.0 crore, and PAT more than tripling to Rs. 3.4 crore. EBITDA margins expanded 550 basis points to 10.1%, driven by improved product mix and cost optimization. For 9MFY26, despite 10% revenue decline to Rs. 161.7 crore, EBITDA grew 24% to Rs. 16.1 crore with margin improvement of 270 basis points to 10.0%.
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Indag Rubber Limited has delivered strong financial performance for Q3FY26, demonstrating significant improvement in profitability metrics despite challenging market conditions. The company, a leading player in India's tyre retreading industry, reported robust growth across key financial parameters.
Financial Performance Highlights
The company's quarterly results showcase remarkable operational efficiency improvements. Revenue for Q3FY26 stood at Rs. 58.7 crore, reflecting steady growth momentum in the retreading business.
| Financial Metric: | Q3FY26 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Total Revenue: | Rs. 58.7 crore | Rs. 55.9 crore | 5% |
| EBITDA: | Rs. 6.0 crore | Rs. 2.6 crore | 129% |
| EBITDA Margin: | 10.1% | 4.7% | 550 bps |
| Profit After Tax: | Rs. 3.4 crore | Rs. 0.8 crore | 322% |
| PAT Margin: | 5.7% | 1.4% | 430 bps |
| EPS: | Rs. 1.28 | Rs. 0.30 | - |
Nine-Month Performance Analysis
For the nine-month period 9MFY26, the company demonstrated resilient profitability despite revenue challenges. While total revenue declined 10% YoY to Rs. 161.7 crore, primarily due to lower STU business volumes in Q1FY26, the profitability trajectory remained encouraging.
| Nine-Month Metrics: | 9MFY26 | 9MFY25 | YoY Change |
|---|---|---|---|
| Total Revenue: | Rs. 161.7 crore | Rs. 179.0 crore | -10% |
| EBITDA: | Rs. 16.1 crore | Rs. 13.0 crore | 24% |
| EBITDA Margin: | 10.0% | 7.3% | 270 bps |
| Profit After Tax: | Rs. 8.8 crore | Rs. 6.8 crore | 30% |
| PAT Margin: | 5.5% | 3.8% | 170 bps |
Management Commentary and Outlook
CEO Vijay Shrinivas highlighted the company's continued margin improvement trajectory and revenue growth during Q3FY26. The revenue growth was primarily driven by both aftermarket and STU business, which witnessed a rebound in volumes. The EBITDA margin improvement of approximately 550 basis points YoY was attributed to better product mix, cost optimization, and gradual easing of raw material costs.
The management expressed confidence about supportive macroeconomic factors, including the Union Budget FY27 raising public capex to Rs. 12.2 lakh crore, with Rs. 3.10 lakh crore allocated for Roads & Highways. Recent India-US and India-EU trade agreements have further strengthened the outlook for domestic logistics activity.
Product Innovation and Market Expansion
During the quarter, the company expanded its portfolio with strategic product launches:
| New Product: | Target Segment | Key Features |
|---|---|---|
| NSR Pattern: | LCVs | 5-rib design, Visual Alignment Indicator, enhanced siping |
| ZREV Pattern: | Electric Buses | EV-optimized, enhanced safety, low-noise operation |
These product introductions enhance the company's value proposition in terms of durability, traction, and mileage, while strengthening its position as a comprehensive and innovation-driven retreading solutions provider. The company continues to leverage its extensive network of over 300 dealers, 3000 retreaders, and 15 strategically located depots across India.
Historical Stock Returns for Indag Rubber
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.16% | -10.16% | -15.37% | -23.29% | -24.13% | -5.91% |
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