Tinna Rubber targets strong growth, international expansion

Tinna Rubber and Infrastructure Limited reported consistent performance in Q2 and H1 FY26, with an EBITDA margin strengthening to 18.5% in Q2 and 17% in H1. The company attributes this to a strategic focus on enhancing profitability by reducing low-margin product sales and upselling to higher-value products. While revenue in H1 FY26 saw a modest 3% dip, the company anticipates closing the financial year with 10% to 15% growth over the previous year.

Strategic updates include a capital expenditure plan of approximately INR100 crores to be completed by FY27, with INR56 crores already incurred in H1 FY26. The company is expanding its renewable energy capacity threefold from 1.23 MW to 4.48 MW, aiming to meet 50% of its power consumption from solar energy by the end of FY26. International projects are progressing, with the Oman plant operating at 85% capacity and generating INR15 crores in revenue, while Saudi Arabia has secured land for a 24,000-ton recycling facility.

Tinna Rubber's Vision 2028 aims to expand its footprint from 6 to 10 locations, targeting a revenue CAGR of over 25% to reach INR1,000 crores by FY28, with sustained EBITDA margins above 18% and ROCE of 30%. The company plans to allocate up to 3% of its PAT towards R&D to drive innovation.