Indag Rubber Reports 15% QoQ Revenue Growth and 57% EBITDA Jump in Q2FY26
Indag Rubber Limited announced its Q2FY26 financial results, showing significant improvement. Total revenue increased by 15% QoQ to ₹55.00 crore, EBITDA grew by 57% to ₹6.20 crore, and PAT surged by 96% to ₹3.60 crore. The company's EBITDA margin expanded by 300 bps to 11.3%. For H1FY26, despite a 16% Y-o-Y revenue decline, EBITDA margin improved by 140 bps. The Board approved an interim dividend of ₹0.90 per equity share. Management attributed the improvement to better sales mix, improved realizations, cost optimization, and healthy volume growth in the core aftermarket business.
*this image is generated using AI for illustrative purposes only.
Indag Rubber Limited , a pioneer in cold retreading technology in India, has announced its financial results for the second quarter and first half of the fiscal year 2026. The company has shown significant improvement in its performance compared to the previous quarter, despite facing challenges in the earlier part of the year.
Q2FY26 Performance Highlights
| Particulars (₹ Crore) | Q2 FY26 | Q1 FY26 | QoQ Change |
|---|---|---|---|
| Total Revenue | 55.00 | 48.00 | +15% |
| EBITDA | 6.20 | 4.00 | +57% |
| EBITDA Margin | 11.3% | 8.2% | +300 bps |
| Profit After Tax | 3.60 | 1.80 | +96% |
| PAT Margin | 6.6% | 3.8% | +71 bps |
The company's performance in Q2FY26 showed marked improvement across key financial metrics:
- Revenue grew by 15% quarter-on-quarter to ₹55.00 crore
- EBITDA increased by 57% to ₹6.20 crore
- EBITDA margin expanded by 300 basis points to 11.3%
- Profit After Tax reached ₹3.60 crore, reflecting a substantial 96% growth
H1FY26 Overview
For the first half of FY26, Indag Rubber reported:
| Particulars (₹ Crore) | H1 FY26 | H1 FY25 | Y-o-Y Change |
|---|---|---|---|
| Total Revenue | 103.00 | 123.20 | -16% |
| EBITDA | 10.10 | 10.40 | -2% |
| EBITDA Margin | 9.9% | 8.4% | +140 bps |
| Profit After Tax | 5.50 | 6.00 | -9% |
| PAT Margin | 5.3% | 4.8% | +50 bps |
While the half-yearly figures show a decline in revenue and profit compared to the previous year, there's a notable improvement in margins.
Management Commentary
CEO Vijay Shrinivas attributed the quarter's improvement to several factors:
- Better sales mix
- Improved realizations
- Continued focus on cost optimization
- Healthy volume growth in the core aftermarket business
Shrinivas noted that Q1FY26 faced challenges due to reduced volumes in the STU (State Transport Undertakings) business and softer demand in the aftermarket segment. However, Q2FY26 showed signs of recovery with volume improvements and demand normalization.
Dividend Announcement
The Board of Directors has approved an interim dividend of ₹0.90 per equity share of ₹2 each.
Company Outlook
Indag Rubber is witnessing steady growth in customer acceptance of retreading as a reliable and sustainable alternative to new tyres. The company's efforts to create greater awareness of its economic and environmental benefits are beginning to yield results.
The management remains optimistic about the company's future, citing improving gross margins, prudent cost management, and growing market acceptance of their retreading solutions as key drivers for sustainable growth.
Historical Stock Returns for Indag Rubber
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.79% | +7.77% | +13.66% | +0.15% | -28.74% | +63.76% |
16
