1. At a Glance – The Tyre That’s Trying to Reinflate
Indag Rubber Ltd is currently trading at ₹95.4 with a market cap of ₹250 crore. The stock has politely declined 25.8% in the last 3 months, reminding shareholders that gravity is still a law of physics.
Trailing twelve-month sales stand at ₹209 crore, PAT at ₹8.58 crore, and EPS at ₹3.27. That puts the P/E at roughly 29.2, slightly above the industry median of 27.
ROCE? 2.93%.
ROE? 2.86%.
Operating Margin (TTM)? 2.77%.
Debt? Just ₹9.22 crore — basically pocket change.
Latest Q3 FY26 quarterly results (Dec 2025) show revenue of ₹56.18 crore and PAT of ₹2.52 crore, with EPS at ₹1.12.
Quarterly profit has jumped massively compared to the same quarter last year. But before we break open the champagne, let’s ask the uncomfortable question:
Is this a real turnaround… or just rubber stretching before snapping?
2. Introduction – From Bandag JV to Battery Storage Dreams
Indag Rubber was incorporated in 1978 as a joint venture between the Khemka Group and Bandag Inc. (USA). Eventually, the Khemkas took full control.
Their core business? Tyre retreading.
If you’ve ever seen a truck tyre that looks new but costs much less, chances are Indag had something to do with it.
Retreading saves up to 70% of the cost of a new tyre while delivering 70% of its life. Sounds like the Indian jugaad philosophy applied to mobility.
But here’s the twist.
The company recently diversified into green energy electronics through its subsidiary, Millenium Manufacturing Systems Private Limited (MMSPL). They are making Power Conversion Systems for Battery Energy Storage Systems.
From tyre rubber to battery storage.
That’s not diversification. That’s career counselling confusion.
So the big question:
Is Indag evolving… or just experimenting?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Indag manufactures:
- Pre-cured tread rubber
- Rubber strip gum
- Spray cement
- Envelopes
- Retreading consultancy
Capacity at Nalagarh plant:
