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.

Tolins Tyres Limited, a prominent player in the tire industry, has recently clinched a significant order from The Institute of Road Transport (IRT), marking a substantial boost to its order book. The company, known for its commitment to safety and durability in tire manufacturing, has secured a contract valued between Rs 40-50 crores, showcasing its strong market position and product demand.

Contract Details

Key Highlights

• Strategic Win: This order reinforces Tolins Tyres' position in the commercial vehicle tire segment, particularly in the public transport sector.
• Product Range: The contract encompasses a variety of products crucial for tire retreading and maintenance, indicating the company's diverse product portfolio.
• Long-term Engagement: With a duration extending potentially beyond March 2026, this contract provides Tolins Tyres with a stable revenue stream for the foreseeable future.
• Domestic Focus: The order, being domestic in nature, aligns with the company's strong presence in the Indian market.

Transparency and Compliance

In line with regulatory requirements, Tolins Tyres has confirmed that:

• The promoters have no interest in the awarding entity (IRT).
• The transaction does not fall under related party transactions.

This disclosure aligns with the company's commitment to transparency and adherence to SEBI regulations.

Market Implications

This substantial order may have positive implications for Tolins Tyres Limited:

• Revenue Boost: The contract value of Rs 40-50 crores is expected to contribute to the company's top line.
• Market Confidence: Securing a contract with a state transport body may enhance the company's credibility and potentially lead to similar orders from other states.
• Capacity Utilization: The order may improve the company's capacity utilization, potentially leading to better operational efficiency.

As Tolins Tyres Limited moves forward with this contract, investors and market watchers will be keen to observe its impact on the company's financial performance and market position in the coming quarters. The successful execution of this order could pave the way for more such contracts, further strengthening the company's foothold in the commercial tire segment.