Tinna Rubber's TPO and RCB commissioning delayed, yet FY27 revenue guidance raised
Milestones for pyrolysis and recovered carbon black plants slipped one to two quarters, but management lifted combined revenue estimate to ₹50-60 cr without explaining the contradiction.
What's new
- Record quarterly profitability: revenue ₹156 cr (+20% YoY), EBITDA margin ~22%, PAT margin >13%.
- TPO trials started Q1 FY27; commercial sales expected Q2, stabilization Q3. RCB production in Q3, sales in Q4.
- PCNV revenue rose 200% to ₹12 cr, contributing 8% of topline with 82% utilization.
- FY27 revenue guidance raised to ₹675-700 cr; FY29 target ₹1,000 cr across 10 locations.
Themes from the call
Demand
Industrial revenue up 58% YoY, exports up 46%; infrastructure volumes up 33% as rubberized bitumen substitution gains traction amid bitumen shortages.
Margins
EBITDA margin of 22% was a record, driven by feedstock optionality, cost control, and higher value-added product mix. Management called it systemic, not one-off.
Capital allocation
Approximately ₹100 cr capex planned over FY27-28, with ₹60 cr capitalised in FY27. R&D budget of ₹5 cr for reclaimed rubber and high-value TPO applications.
Guidance watch
- FY27 consolidated revenue ₹675-700 cr with EBITDA margin 18-20%.
- TPO and RCB together to contribute 7-10% of revenue (₹50-60 cr) despite delayed commissioning.
- PCNV to contribute 10% of FY27 revenue; South Africa targets break-even in Q2.
- CAPEX of ₹100 cr over FY27-28; MRP capacity expansion of 3,500 tonnes to complete by Q3 FY27.
Risk flags
- TPO/RCB timeline-revenue contradiction: later milestones but higher revenue expectation, with no explanation of how output can increase if plants start later.
- Consumer segment volumes down 20% due to input cost shock (binder/synthetic grass prices tripled); no recovery timeline provided.
- Ongoing external risks: West Asia disruption, bitumen shortages, raw-material inflation, and logistics issues.
Key quotes
-
"We are targeting a presence across 10 locations and revenue of Rs 1,000 crore by FY29, while maintaining 25.0% plus revenue growth, 33.0% plus profitability growth, EBITDA margins over 18.0%, and ROCE exceeding 30.0%"
— Gaurav Setli, Joint Managing Director, prepared remarks -
"The tire pyrolysis oil facility at Warli commenced trials in Q1 FY27 and it is expected to commence commercial sales in Q2 FY27, with operations stabilizing by Q3 FY27. The RCB production is scheduled to commence in Q3 FY27."
— Tinna management, July 2026 call
The brief
Tinna Rubber reported a record quarter: revenue of ₹156 crore, EBITDA margin of 22%, and PAT above 13%. Industrial and export demand remain strong, PCNV is scaling, and the infrastructure segment is benefiting from bitumen shortages that favour rubberized bitumen. But the headline numbers are shadowed by a widening gap between guidance and execution on two critical new businesses — TPO and RCB. In May, management expected both plants to be fully operational by Q3 FY27 with combined revenue of ₹50-55 crore. Two months later, TPO stabilization has slipped to Q3, RCB commercial sales to Q4, yet the revenue estimate has been raised to ₹50-60 crore, now defined as 7-10% of annual revenue. The basis for faster revenue from delayed plants was not addressed. The record margins buy some patience, but new-vehicle capacity delays are an execution risk that compounds the existing external headwinds — West Asia disruption, raw-material inflation, and consumer demand weakness. Management's ₹1,000 crore FY29 target and 18%+ EBITDA margin guidance are ambitious but depend on flawless ramp-up. The TPO/RCB timeline conflict makes flawless ramp-up harder to underwrite.
Tinna Rubber's record margins buy some patience, but the widening gap between TPO/RCB timelines and revenue targets tests credibility.