Tinna Rubber And Infrastructure Limited Q3 FY26 Earnings Call Summary

Summary

Tinna Rubber And Infrastructure Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 4:00 PM

Event Participants

Executives 3 Gaurav Sekhri (Joint Managing Director), Ravindra Chhabra (CFO), Subodh Kumar Sharma (Director & COO)

Analysts 11 Ashvath Rajan, Bivesh Jaggat, Deepesh, Kamal Jeswani, Karan Gupta, Khushal, Kushal, Manish, Puneet, Raghav Bansal, Siddhi Kyal, Yash Purbhe

Financials & KPIs

Geographic & Segment Commentary

• Infrastructure: Revenue witnessed slight moderation due to a strategic shift toward value-added products like Crumb Rubber Modifier (+80% volume YoY) and Emulsions (+15% YoY). Q3 saw recovery as monsoon-related roadwork delays subsided, supported by a ₹76 crore IOCL work order.
• Industrial & Consumer: Industrial segment grew 18% YoY; Consumer segment grew 10% YoY in revenue despite price corrections. Strategic focus remains on sports turfing and playground surfaces where demand typically peaks post-monsoon.
• Oman (International): Operating at 80% capacity with ₹25 crores revenue in 9MFY26; achieved PAT of ₹35 lakhs. Management targets GCC sales to rise from 40% to 70% by Q1 FY27 to improve margins.
• South Africa & Saudi Arabia: South Africa Phase 1 (cutting/shredding) is operational but currently loss-making; break-even targeted for Q2 FY27. Saudi plant site (13,000 sqm) is allotted with construction starting mid-FY27.

Company-Specific & Strategic Commentary

• Vision 2028: Targeted revenue of ₹1,000 crores by FY28 with 18% EBITDA margins and 30%+ ROCE, supported by a capacity increase to 250,000 tons.
• Pyrolysis & RCB Project: Trial runs for pyrolysis to commence in Q4 FY26 at Varale plant; Recovered Carbon Black (RCB) trial runs slated for Q1 FY27.
• Renewable Energy: Scaling capacity from 1.23 MW to 4.48 MW by end of Q4 FY26; expected to deliver ₹4 crores in annual savings and meet 50% of power needs by FY27.
• PCMB Business: Currently at 40% utilization (4% revenue contribution); targeting 1,000 tons in Q4 FY26 and ₹50-60 crores revenue in FY27.
• TP Buildtech: Third plant commissioned in Kolkata (15-20% utilization) to serve East India; introduced new product lines including grout repair and accelerators.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Infrastructure Demand (Karan Gupta)

• Question: What is the demand scenario after monsoon delays?
• Answer: Work has picked up significantly post-October. February to July are the peak months, and the ₹76 crore IOCL order provides strong visibility (Subodh Sharma).

PCMB Growth (Ashvath Rajan)

• Question: What gives confidence in achieving 1,000 MT in Q4 for PCMB?
• Answer: Repeat business from existing customers and improved product quality. We expect this segment to contribute ₹50-60 crores next year (Gaurav Sekhri).

Margin Contraction (Manish)

• Question: Why did EBITDA margins drop from 18.5% in Q2 to 16.3% in Q3?
• Answer: Q2 margins were artificially high due to lumpy accounting of EPR credits that were delayed on the government portal. Q3 reflects normalized quarterly accounting (Gaurav Sekhri).

Raw Material Sourcing (Khushal)

• Question: What is the status of tire imports and domestic procurement?
• Answer: The company continues to process a majority of imported tires due to better optionality and price stability across different origins (Gaurav Sekhri).

Key Takeaway

Tinna Rubber delivered a resilient Q3 FY26 with consolidated revenue growing 13% YoY to ₹152 crores, underpinned by a 25% QoQ recovery in tire crushing volumes following an extended monsoon. While the company narrowed its FY26 revenue guidance to ₹535-₹540 crores, strategic investments in value-added segments like Recovered Carbon Black (RCB) and Polymer Modified Bitumen (PCMB) are positioned to drive FY27 revenue toward the ₹700 crore mark. Operating efficiencies are being bolstered by a 3x expansion in solar capacity and higher utilization at the Varale plant (now 80%). Despite initial startup losses in South Africa and Saudi Arabia totaling ₹1.46 crores, management remains committed to Vision 2028, targeting ₹1,000 crores in revenue and 18% EBITDA margins. Investors should monitor the successful commissioning of the pyrolysis trials in Q4 FY26 and the break-even of South African operations in early FY27.