Gaurav Sekhri opens Tinna Rubber and Infrastructure's Q4 and FY26 call: record tyre processing volumes, EBITDA margins of over 17%, and a three-year CAGR of 23% in revenue, 37% in EBITDA and 34% in profit after tax.2:18
India tyre crushing capacity rose 9% to 185,000 tons with a target of 235,000 tons by FY27, backed by over 100 crores of capex in FY26 and another 100 crores over FY27 and FY28, plus solar capacity raised from 1.23 to 4.48 megawatt.3:08
COO Subodh reports standalone revenue stable at 533 crores with EBITDA margin at 17.2%, Q4 consolidated revenue up 22% to 157 crores, debt down to 121 crores and ROCE at 23%.14:24
In Q&A management expects 20 to 25% revenue growth in FY27, PCMB revenue of about 75 crores, 50 to 55 crores from the pyrolysis and RCB plants, and only a temporary dip in infra demand from bitumen shortages.22:35
Sekhri says scale and diversity of raw materials, geographies and customers form the company's moat, and that most of the planned capex will be funded from internal accruals with at most about 20 crores of debt.30:44
Brief overview
Tinna Rubber closed FY26 with record tyre processing and EBITDA margins above 17%, targeting 1,000 crores by FY29.
Vision 2029: 1,000 crores at over 18% EBITDAManagement keeps 18% as its margin guidance after reaching about 18% in Q4.
New businesses add the next leg of growthPCMB is expected to rise from about 4% to 8-10% of revenue, with pyrolysis and RCB coming online in FY27.
Bitumen shortages hit infra only temporarilyBitumen prices have almost doubled, which management says makes crumb rubber modified bitumen more compelling.
Questions this recording answers
4 questions, each answered where it is said
What is Tinna Rubber's Vision 2029 target?
The company aims to reach revenue of a thousand crores while maintaining EBITDA margins of over 18%. Management says it reached about 18% EBITDA in Q4 and that 18% is the level it is comfortable guiding to, with growth from capacity expansion, new products and international presence.
Answered around 10:38How much revenue growth does management expect in FY27?
Management expects about 20 to 25% revenue growth in FY27. PCMB is projected at about 75 crores, the pyrolysis and RCB plants at about 50 to 55 crores, and PCMB's share of revenue rising from about 4% to 8 to 10%.
Answered around 22:35How are bitumen shortages affecting the infra business?
Less bitumen availability may reduce infra demand in Q1 and Q2, but management expects it to normalize because of India's road program. The company holds no bitumen itself, and with bitumen prices almost doubled, crumb rubber modified bitumen becomes more compelling for contractors.
Answered around 19:53How will the planned capex be funded?
Mostly from internal accruals. The company generated 92 crores of EBITDA in FY26 and projects crossing 100 crores in FY27, and may take up to about 20 crores of debt if there is a gap, but does not expect more than that.
Answered around 54:27
Key Quote
“Nearly 50% of our power requirements are expected to be met through renewable sources”
— Gaurav Sekhri, TINA Rubber FY26 Earnings Call, at 4:23▶ listen at 4:23
Key Quote
“Now, that can only be reached by scale.”
— Gaurav Sekhri, TINA Rubber FY26 Earnings Call, at 31:13▶ listen at 31:13
Key Quote
“But I feel that we are well protected with the moats that we have created.”
— Gaurav Sekhri, TINA Rubber FY26 Earnings Call, at 32:12▶ listen at 32:12
Key Quote
“our comfort level to give a guidance to market is at 18%.”
— Gaurav Sekhri, TINA Rubber FY26 Earnings Call, at 36:59▶ listen at 36:59