Tinna Rubber ratings reaffirmed amid debt-funded expansion

Tinna Rubber and Infrastructure Limited’s long-term bank facilities have been reaffirmed at CARE BBB-; Stable, with long-term/short-term bank facilities also receiving a reaffirmation of CARE BBB-; Stable / CARE A3. The ratings highlight the company's experienced management, diversified customer base, pan-India manufacturing facilities, and growing scale of operations. Total operating income increased to ₹506.18 crore in FY25 from ₹363.09 crore in FY24, with PBILDT and PAT margins at 15.36% and 9.55% respectively in FY25.

The company is undertaking a significant capital expenditure of approximately ₹100.00 crore in FY26, to be funded through a mix of internal accruals, term loans (₹20.34 crore), and funds from QIPs (₹35.00 crore). As of August 31, 2025, Tinna Rubber has already incurred approximately ₹49.00 crore towards this expansion, with the overall gearing ratio at 0.76x as of March 31, 2025. The company's moderate operating cycle was 41 days in FY25.

Challenges include exposure to raw material price volatility, foreign exchange rate fluctuations, and cyclical industry demand. However, Tinna Rubber's liquidity position is adequate, with GCA of ₹59.85 crore in FY25 and expected GCA of approximately ₹68.00 crore in FY26 against repayment obligations of ₹12.45 crore.