Tinna Rubber Q1FY26 Concall Decoded: Revenue –4%, EBITDA +19% QoQ, PAT Flat — Recycling Tires into Guidance Dreams

1. Opening Hook

When life gives you end-of-life tires, Tinna squeezes out EBITDA margins instead of juice. Q1 saw revenue dip, but management bragged about “344 bps gross margin improvement” like they discovered sliced bread. Add in a maiden QIP, Oman plant humming at 85% utilization, and Saudi land banked — Tinna’s global rubber bazaar is inflating faster than tyre pressure in summer. Investors, however, wanted to know: are we really on track for Vision 2028, or just patching punctures with PowerPoints?

2. At a Glance

• Revenue –4% YoY – Blame monsoon, infra slowdown, and EPR credits shrinking.
• EBITDA ₹21 Cr (+19% QoQ, 16% margin) – Margins pumped like nitrogen gas.
• PAT ₹12 Cr (flat QoQ) – No puncture, no speed either.
• Gross Margin +344 bps QoQ – Cheaper scrap tyres, smarter sourcing.
• Working Capital Cycle 38 days (vs 42) – Cash unlocked, credit still tight.
• Capex Q1: ₹13 Cr, FY26–27 plan ₹100 Cr – New toys: RCB plant, solar, Oman expansion.
• QIP Raised ₹79 Cr – Mutual funds bought the story; let’s see if roads follow.

3. Management’s Key Commentary

“EBITDA grew 19% QoQ despite revenue flat.”
(Translation: We made more money recycling fewer tyres — accounting alchemy at work.)

“QIP raised ₹79 Cr from marquee MFs.”
(Translation: We sold the dream to ICICI, JM, and BOI — your turn, retail junta.)

“RCB plant to start by Q4FY26.”
(Translation: Black gold coming, but only after winter fog clears.)

“Oman plant at 85% utilization, Saudi land allotted.”
(Translation: We’re now officially the NRI of tire recycling.)

“Optionality in feedstock cut RM cost by 10–15%.”
(Translation: From truck tyres to mining tyres — anything round is fair game.)

“Vision 2028: ₹1,000 Cr revenue, 18% EBITDA margin, 30%+ ROCE.”
(Translation: Stretch goals are free, execution costs extra.)

4. Numbers Decoded