Tinna Rubber and Infrastructure Ltd (TINNARUBR) Q2FY27 Concall Transcript - Sep-2026 Qtr
Rutuja: Ladies and gentlemen, good day, and welcome to the Tinna Rubber and Infrastructure Limited Q2 and H1 FY '27 earnings conference call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only
Rutuja: ready for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Ms. Sana Kapoor from Go India Advisors. Thank you, and over to you, ma'am.
Sana Kapoor (Go India Advisors): Thank you, Rutuja. Good afternoon, everybody, and welcome to Tinna Rubber and Infrastructure Limited's earnings call to discuss the Q2 and H1 FY27 results. We have on the call, Mr. Gaurav Sekhri, Joint Managing Director, Mr. Subodh Kumar Sharma, Director and Chief Operating Officer, Mr. Abhay Kumar, Chief Financial Officer, and Mr. Rajarshi Datta, Business Development and Corporate Affairs. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Gaurav Sekhri to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Gaurav Sekhri (Tinna Rubber and Infrastructure Limited): Thank you, Sana, and good afternoon everyone. Sana, am I audible okay?
Sana Kapoor (Go India Advisors): Yes sir, loud and clear.
Gaurav Sekhri (Tinna Rubber and Infrastructure Limited): Thank you. Welcome everyone to Tinna Rubber and Infrastructure Limited's Q2 and H1 FY27 earnings call. Our results and earnings presentation are available on our website and on the stock exchanges. I will cover the strategic updates and then Subodh will take you through our operational and financial performance. H1 FY27 has been a landmark period with profitability at record levels on both standalone and consolidated basis. In Q2, consolidated revenue grew 31% and PAT grew 45% year-on-year, reflecting the strength of our business model. CARE Ratings also has upgraded our credit rating to CARE BBB stable for long-term facilities, and CARE A3+ for short-term facilities. Our 3,500-ton per annum Micronized Rubber Powder expansion is on track for commissioning in Q3 of FY27. It will take our total MRP capacity to 20,000 tons per annum, making us the world's largest producer of MRP. At our plant in Varale, the tyre pyrolysis oil began commercial sales in Q2 and we expect it to stabilize by Q3. The recovered carbon black production starts in Q3, and we expect commercial sales to commence in Q4. Our Polymer Composites and Masterbatch business more than tripled its revenue to 27 crores in H1. With 12,000 tons per annum capacity added at Ganaur, its capacity is now 18,000 tons per annum, and we expect the PCMB business to contribute 8% to 10% of the FY27 revenue, which is as per the guidance given as earlier this year. We have completed 45 crores of capex in H1, out of Rs. 100 crore planned across FY27 and FY28. I am pleased to inform that we have completed acquisition of 40 acres of land in Andhra Pradesh for an integrated rubber and plastics recycling complex. We plan to invest approximately 250 crores over three years at this facility, which will involve tyre recycling, plastics recycling, pyrolysis, and a recovered carbon black plant at this location. In our Q2 filings, we have informed our shareholders that our Panipat plant land may be acquired by Haryana Government. While our representation to the state government is pending against this acquisition, we wish to clarify that if this land is eventually acquired by the state government, our compensation due to us more than offsets the book value of this plant. Our Panipat facility is our oldest and smallest of the factories where we only make crumb rubber and Micronized Rubber Powder. All the plastics recycling facility in North India is not located at this premises. Therefore, to further clarify, and as already informed in our Q2 filing,
Gaurav Sekhri (Tinna Rubber and Infrastructure Limited): The acquisition of Panipat land if it was to happen will not have any material negative impact on our operations. Internationally, our Oman plant ran at 90% utilization in H1 and its EBITDA margins improved to 11.5% from only 6.4% in FY '26. In South Africa, phase one is complete and exports of semi-processed material has begun. The 9,000-tonne per annum crumb line, which is part of our phase two at South Africa, is now under commissioning. This has got delayed by 3 to 4 months due to supply chain disruption and some of our equipment getting stuck in the Middle East and was not able to reach South Africa on time. In Saudi Arabia, a plot has been allotted for a 24,000-tonne per annum tire recycling plant. We expect to begin construction in H2 of FY '27, of course, subject to the geopolitical situation. We have also set up Tinna Rubber Chile SpA in Santiago to widen our end of life tire sourcing network. I am pleased to inform renewable energy met 40% of our power needs in H1, as our renewable capacity rose from 1.23 megawatt to 4.48 megawatt, and the solar power savings have have touched approximately 2.37 crore. We remain focused on our vision 2029, which is to achieve revenue of 1,000 crores, revenue CAGR above 25%, and profitability CAGR above 33%, EBITDA margins above 18%, and ROCE above 20%. We, part of our vision is also to expand ourselves from 8 to 10 locations. I'm pleased to inform that we are making good progress on all of these fronts. With this, I hand over to Subodh.
Subodh Kumar Sharma (Tinna Rubber and Infrastructure Limited): Thank you, Gaurav ji, and good afternoon, everyone. Coming on our operational and the financial performance, in H1 FY '27, tire crushing volumes grew 30% on year-on-year basis to 86,000 tonnes. Production of MRP, micronized rubber powder, and reclaim rubber rised by 19% supported by steady demand from the tire industry. By segment, infrastructure revenue grew by 38% to 112 crores despite bitumen supply constraints. Industrial segment revenue grew 37% to ₹85 crore, which also includes export volume, which has contributed 6% to our total revenue, and the export volume growth has been witnessed approx 15%. Consumer segment revenue rose to ₹21 crore from ₹19 crore on price correction with stable volumes. With steel, revenue rise to ₹57 crore from ₹53 crore, also on price correction with stable volumes. Infrastructure and industrial remained our main growth drivers. On a console basis, Q2 revenue was ₹157 crore, up from ₹120 crore. EBITDA grew by 37% to ₹29 crore, and PAT grew by 45% to ₹17 crore. EBITDA margin stood at 18.8% against 18.0%, and PAT margin 10.9% against 9.8%. For H1, revenue grew by 25% to 313 crores, while EBITDA grew by 50% to ₹63 crore and PAT grew by 60% to ₹38 crore. EBITDA margin stood at 20.4%, and PAT margin stood at 12.2%. Profitability moderated from Q1 because of startup costs, geopolitical uncertainties, and subsidiary performances. We expect these to normalize as operations scale up. Among subsidiaries, Oman reported PAT of 1.3 crore in H1. South Africa and Saudi Arabia combined together recorded a startup loss
Subodh Kumar Sharma (Tinna Rubber and Infrastructure Limited): around 94 lakhs. TP Buildtech had revenue of ₹41 crores and EBITDA stood at 4.7 crores, contributing ₹1 crore at the console level. In the best case, it is targeting revenue of 100 crores by FY '27, by raising utilization at Kolkata, expanding nationally, and growing its construction system business. It plans to launch next-generation self-repair products by FY '28. Our balance sheet also strengthened further. Debt fell to ₹111 crore from ₹121 crore at the end of FY '26. Our interest coverage improved to 9.91 from 7.49 and net debt-to-equity at 0.32%. From FY '23 to FY '26, our revenue nearly doubled, EBITDA grew by 2.5 times and PAT grew by 2.4 times. And for FY '27, we are targeting revenue of around 700 crores, EBITDA of 126 crores, and PAT of ₹70 crores. With that, I open the floor for question answers. Over to you, moderator.
Moderator: Thank you. Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Hitesh Ashar from Shogun Capital. Please go ahead.
Hitesh Ashar (Shogun Capital): Good afternoon, sir. Am I audible?
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