Tolins Tyres Limited Q2 & H1 FY26 Concall Decoded: – GST cut saved the industry, not this quarter’s numbers

1. Opening Hook

When GST cuts arrive and profits fall, someone’s math clearly went on leave. Tolins Tyres walked into its Q2 FY26 concall carrying two things—GST optimism and disappointing numbers. Management blamed purchase deferment, investors smelled goalpost movement, and analysts kept asking the same question in different accents: “If demand was only postponed, why did guidance shrink?”

The call turned into a polite courtroom drama. GST was the villain, Q2 the victim, and H2 the promised redemption arc. Tractor tyres were hyped, margins were defended aggressively, and the phrase “back to normal” was repeated often enough to qualify as a mantra.

But beneath the confidence sat visible cracks—margin compression, confused guidance, and a Q&A session that raised more eyebrows than EPS. Stick around. This one gets interesting once numbers start contradicting narratives.

2. At a Glance

• H1 revenue ₹155.8 cr (+2%) – Growth technically alive, emotionally flat.
• Q2 revenue ₹66.1 cr (-14% YoY) – GST blamed, investors unconvinced.
• H1 EBITDA margin 14.3% – From 20% dreams to mid-teens reality.
• Q2 EBITDA margin 13.5% – Fixed costs don’t care about deferments.
• PAT margin ~10% – Profit survived, but barely.
• EPS ₹4.16 (H1) – IPO investors checking calculators again.

3. Management’s Key Commentary

“The softness in Q2 was purely due to GST-related purchase deferment.”
(Translation: Customers waited, margins didn’t.) 😐

“This was demand postponement, not demand destruction.”
(Translation: Please don’t extrapolate Q2.)

“GST cut from 28% to 18% is a game changer for the industry.”
(Translation: H2 better cooperate, or this story collapses.) 😏

“Our margins remain comfortable compared to peers.”
(Translation: Don’t compare us to ourselves last year.)

“Q3 volumes are back to Q1 levels.”
(Translation: Believe us, numbers coming soon.)

“We never guided 20% growth; minimum is 10%.”
(Translation: Please don’t quote old transcripts.) 😬

“Tractor rear tyres are a high-margin category.”
(Translation: New products will rescue blended margins.)

4. Numbers Decoded