Tinna Rubber & Infrastructure Ltd Q1 FY26 – The Tyre Funeral Parlour That Prints Cash
1. At a Glance
Tinna Rubber & Infrastructure Ltd (TRIL) isn’t your average “rubber company.” This smallcap champ recycles dead tyres into crumb rubber, bitumen, reclaimed rubber, gym flooring, and even steel wires. Stock price is ₹961, giving it a market cap of ~₹1,730 Cr. In the last one year, it has nosedived 36% (clearly, gravity respects even rubber). Still, the company posted FY25 sales of ₹500 Cr with a PAT of ~₹44 Cr — that’s an ROE of 31% and ROCE of 28%, numbers that would make even FMCG giants jealous. P/E at 38.8x looks stretched like a punctured MRF tube, but margins and growth make analysts scratch their heads rather than their calculators. Debt is a manageable ₹135 Cr, promoter holding stands at 67.6%, and the company has ambitious plans to hit ₹900 Cr revenue by FY27.
2. Introduction
If you’ve ever wondered what happens to the tyres your car mechanic quietly dumps in the corner, welcome to Tinna Rubber. They turn this black waste into black gold — crumb rubber used in roads, polymer-modified bitumen, and reclaimed rubber. Basically, they are the middlemen between India’s “Swachh Tyres Abhiyaan” and NHAI’s pothole-ridden highways.
The company has been around since 1977, but like many Indian uncles, it only found its groove after midlife crisis. Growth in the last 5 years has been explosive — sales CAGR 33%, profit CAGR 65%. The narrative? From waste recycler to infra enabler, while also making some gym mats so you can squat on recycled Apollo tyres.
But here’s the twist: despite fantastic ROEs and balance sheet discipline, the market punished the stock with a 36% fall in the last year. Why? Maybe because investors realized rubber doesn’t bounce forever. Or maybe because growth expectations were priced in at a P/E fatter than a Delhi butter naan.
Question: Would you pay 9x book value for a tyre recycler? Or do you think this stock has already skidded on a wet road?
3. Business Model – WTF Do They Even Do?
Think of Tinna Rubber as the mortuary for old tyres. They collect end-of-life tyres, shred them, and then:
Infrastructure (52% revenue): Crumb Rubber Modifier (CRM), Polymer Modified Bitumen (PMB), Emulsions. Translation: they literally mix dead tyres into road tar to make highways last longer. Irony: Indian roads still don’t last monsoons.
Industrial (25% revenue): Reclaimed rubber and compounds for tyre makers and conveyor belts. Basically, recycled rubber goes back to tyre companies — recycling loop tighter than your chappal straps.
Steel (13% revenue): The wire inside tyres is recovered and sold as steel abrasives. Who knew every car tyre was secretly a steel investment?
Consumer (10% revenue): Rubber mats, tiles, flooring. So, the next time you do yoga, you might be stretching on what used to be a truck tyre.
They process 200,000 MT of tyres annually, targeting 250,000 MT by FY27. If reincarnation exists for tyres, Tinna is the temple.
4. Financials Overview
Quarterly Snapshot (₹ Cr)
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
130
136
129
-4.2%
+0.8%
EBITDA
21
25
18
-16%
+16.7%
PAT
12
16
12
-28.4%
0%
EPS (₹)
6.52
9.57
6.82
-31.8%
-4.4%
Commentary: Revenue flat, margins under slight pressure, PAT slipping — but still profitable. Unlike most infra suppliers who run on subsidies and prayers, Tinna prints double-digit returns.
5. Valuation Discussion – Fair Value Range
P/E Method: EPS (TTM) ~₹25. At CMP ₹961, P/E ~39x. Industry peers average ~34x.
