Tinna Rubber sees stable H1FY26 amidst restructuring, focuses on margin growth

Tinna Rubber and Infrastructure Limited reported operational income of INR 117 crore for Q2FY26 and INR 244 crore for H1FY26. The company's EBITDA margin stood at 18.5% for Q2FY26 and 17.0% for H1FY26, with PAT margins of 10.6% and 9.6% respectively. On a consolidated basis, H1FY26 operational income reached INR 250 crore, with an EBITDA margin of 17.0% and a PAT margin of 9.4%.

Operational performance for H1FY26 saw a 2% dip in tyre processing volumes to 65,759 MT, aligning with a strategic decision to prioritize margin expansion over low-margin commoditized products. The infrastructure segment revenue dipped 23% year-over-year, while the industrial segment grew 19%. Export volumes increased by 7%, and the CRM business volume grew 75%. The company is expanding its renewable energy capacity to 4.48 MW, expecting INR 3.9 crore+ in savings for FY26, and initiated INR 100 crore in Capex over the next two years, with INR 56 crore already completed in H1FY26.

International projects show progress, with Mbodla Investments completing Phase 1 capex, targeting breakeven by March 2026. Global Recycle LLC is operating at 85% capacity, contributing INR 15 crore in revenue for H1FY26. Tinna Rubber Arabia posted an INR 19 lakh loss due to startup costs, with operations planned for mid-FY27. The company's rCB project remains on track for commissioning by the end of Q3.