Tinna Rubber Q2 FY27: Revenue Up 31%, PAT Up 45%; MRP Capacity to 20,000 Tonnes

Tinna Rubber and Infrastructure Limited announced its financial and operational performance for the second quarter and half year ended September 30, 2026 (Q2 – H1FY27) on October 26, 2026. The company reported a consolidated revenue growth of 31% and Profit After Tax (PAT) growth of 45% year-on-year in Q2. CARE Ratings upgraded the company's credit rating to CARE BBB (stable) for long-term facilities and CARE A3+ for short-term facilities.

The company's 3,500 tonne per annum micronized rubber powder (MRP) expansion is on track for commissioning in Q3 of FY27, which will increase the total MRP capacity to 20,000 tonnes per annum, positioning Tinna Rubber as the world's largest producer of MRP. Commercial sales for Tyre Pyrolysis Oil (TPO) at the Varale plant began in Q2 and are expected to stabilize by Q3, with recovered Carbon Black (rCB) production starting in Q3 and commercial sales in Q4.

The Polymer Composites & Masterbatch (PCMB) business more than tripled its revenue to ₹27 crores in H1 FY27, with an added capacity of 12,000 tonnes per annum at Gannaur, bringing the total PCMB capacity to 18,000 tonnes per annum. This business is expected to contribute 8% to 10% of the FY27 revenue. The company completed ₹45 crores of capital expenditure (capex) in H1 FY27 out of a planned ₹100 crores for FY27 and FY28.

Tinna Rubber has acquired 40 acres of land in Andhra Pradesh for an integrated rubber and plastics recycling complex, with plans to invest approximately ₹250 crores over three years. This facility will include tyre recycling, plastics recycling, pyrolysis, and a recovered carbon black plant. Regarding the potential acquisition of its Panipat plant land by the Haryana government, the company clarified that compensation would more than offset the book value and the impact on operations would not be material.

Internationally, the Oman plant ran at 90% utilization in H1 FY27 with improved EBITDA margins to 11.5%. In South Africa, Phase 1 is complete, and exports of semi-processed material have begun, with the 9,000 tonne per annum crumb line (Phase 2) under commissioning, delayed by 3-4 months. In Saudi Arabia, a plot has been allotted for a 24,000 tonne per annum tyre recycling plant, with construction expected to begin in H2 FY27, subject to geopolitical stability. Tinna Rubber Chile SpA has been set up in Santiago to expand its end-of-life tyre sourcing network.

Renewable energy met 40% of the company's power needs in H1 FY27, with renewable capacity rising to 4.48 megawatts, resulting in solar power savings of approximately ₹2.37 crores. The company remains focused on its Vision 2029, aiming for revenue of ₹1,000 crores, revenue CAGR above 25%, profitability CAGR above 33%, EBITDA margins above 18%, and ROCE above 30%, with expansion to 8-10 locations.

Operationally, H1 FY27 saw tyre crushing volumes grow 30% year-on-year to 86,000 tonnes. MRP and reclaimed rubber production rose by 19%. Infrastructure revenue grew by 38% to ₹112 crores, and Industrial segment revenue grew by 37% to ₹85 crores. Consumer segment revenue rose to ₹21 crores, and Steel revenue increased to ₹57 crores.

On a consolidated basis, Q2 FY27 revenue was ₹157 crores, with EBITDA growing 37% to ₹29 crores and PAT growing 45% to ₹17 crores. EBITDA margin was 18.8%, and PAT margin was 10.9%. For H1 FY27, revenue grew by 25% to ₹313 crores, EBITDA grew by 50% to ₹63 crores, and PAT grew by 60% to ₹38 crores. EBITDA margin stood at 20.4%, and PAT margin was 12.2%.

For FY27, the company is targeting revenue of around ₹700 crores, EBITDA of ₹126 crores, and PAT of ₹70 crores. The company also mentioned that EPR income in Q2 was ₹4.6 crores, down from ₹6.7 crores in the previous quarter.