Tolins Tyres Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The Kerala-based tyre manufacturing company, incorporated in 2003, reported mixed performance with revenue growth but slight decline in profitability compared to the corresponding period last year.

Management Commentary on Q3 Performance

According to management, Q3 FY26 marked a strong rebound in performance with robust year-on-year revenue growth and clear recovery in volumes across both retread and new tyre segments. The deferred demand witnessed in Q2 has meaningfully converted into orders during the quarter, reflecting improved customer sentiment and normalized buying patterns following the GST revision.

The agricultural segment delivered encouraging traction, with the newly launched tractor rear tyre range beginning to contribute meaningfully to revenues. The increasing share of tractor tyres in the overall mix validates the strategic focus on expanding presence in high-demand farm tyre categories.

Standalone Financial Performance

The company's standalone operations showed strong revenue growth during the third quarter of FY26. Revenue from operations increased substantially to ₹679.16 million compared to ₹420.34 million in the same quarter of the previous year.

Despite the revenue growth, net profit after tax declined marginally to ₹52.75 million from ₹53.87 million in Q3 FY25. The company's profit before tax stood at ₹71.15 million compared to ₹63.95 million in the corresponding quarter.

Nine-Month Standalone Results

For the nine-month period ended December 31, 2025, standalone revenue from operations reached ₹1,758.07 million compared to ₹1,394.95 million in the corresponding period of FY25. Net profit after tax for the nine-month period was ₹123.76 million, lower than ₹164.35 million achieved in the same period last year.

Consolidated Financial Performance

On a consolidated basis, which includes the company's subsidiaries, Tolins Tyres demonstrated stronger performance. Consolidated revenue from operations for Q3 FY26 was ₹932.87 million compared to ₹697.35 million in Q3 FY25, marking significant growth.

For the nine-month period, consolidated revenue reached ₹2,491.33 million compared to ₹2,229.19 million in the previous year, while net profit was ₹267.47 million versus ₹294.02 million in 9M FY25.

Segment Performance and Business Operations

The company operates across two geographical segments - India and United Arab Emirates. For Q3 FY26, the India segment contributed ₹805.15 million in revenue while the UAE segment generated ₹127.72 million.

The company has wholly owned subsidiaries including Tolins Rubbers Private Limited, Tolins Tyres LLC, and recently acquired Terra Rubber Private Limited in October 2025.

Strategic Outlook and Market Position

Management believes Tolins Tyres is well-positioned to sustain growth in the coming quarters while maintaining focus on margin stability and operational efficiency. Distribution expansion and deeper engagement with institutional customers supported volume growth across key markets during the quarter.

For the nine-month period, the company has demonstrated resilience and improved operational momentum. With demand visibility strengthening, a diversified customer base, and continued cost discipline, the company expects to maintain its growth trajectory.

Financial Position

The company's total consolidated assets stood at ₹3,805.52 million as of December 31, 2025, compared to ₹3,491.59 million in the previous year. Total liabilities were ₹290.38 million, down from ₹346.29 million in the corresponding period. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 13, 2026.

Tolins Tyres Limited has submitted its quarterly compliance statement to stock exchanges, confirming no deviation in the utilization of funds raised through its Initial Public Offer (IPO) for the quarter ended December 31, 2025. The statement, filed pursuant to SEBI regulations, demonstrates the company's adherence to its original fund utilization plan outlined in the prospectus.

IPO Fund Raising Details

The company successfully raised funds through its IPO in September 2024, with the following financial structure:

Fund Utilization Breakdown

Tolins Tyres has allocated the IPO proceeds across multiple strategic objectives as originally planned. The detailed utilization shows effective deployment of capital across various business requirements:

Regulatory Compliance and Oversight

The statement demonstrates the company's commitment to regulatory compliance under SEBI guidelines. Key compliance aspects include:

• Monitoring Agency: Brickwork Ratings India Private Limited oversees the fund utilization
• Audit Committee Review: Statement reviewed and approved on February 13, 2026
• Regulatory Framework: Filed under Regulation 32(1) of SEBI (LODR) Regulations 2015
• Quarterly Reporting: Covers the period ended December 31, 2025

Fund Deployment Analysis

The utilization pattern shows strategic allocation across core business areas. The loan repayment objective received ₹72.44 crores against the planned ₹69.97 crores, indicating complete fulfillment of debt obligations. Working capital augmentation consumed ₹75.08 crores, closely matching the allocated ₹75.00 crores, reflecting precise capital planning.

The subsidiary investment of ₹23.15 crores was utilized exactly as planned for Tolins Tyres Private Limited, supporting debt repayment and working capital requirements. General corporate purposes utilized ₹14.10 crores against the allocated ₹15.68 crores, while issue expenses were ₹13.84 crores compared to the budgeted ₹16.20 crores.

Corporate Governance

The statement was digitally signed by Umesh M, Company Secretary and Compliance Officer, ensuring proper authorization and documentation. The company maintains its registered office at Kalady, Kerala, and holds ISO 9001:2015 and IATF 16949:2016 certifications, reflecting its commitment to quality standards and operational excellence.