RUBFILA - Rubfila Intl.

📊 NSE: RUBFILA 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:29

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 reached INR 150.24 Cr, representing an 11.5% growth compared to INR 134.75 Cr in Q2 FY25. On a half-yearly basis (H1 FY26), revenue grew 17.3% to INR 295.17 Cr from INR 251.60 Cr in H1 FY25. The standalone segment contributed INR 128.21 Cr (85.3% of total) while the subsidiary Premier Tissues India Limited contributed approximately INR 22.03 Cr (14.7% of total) in Q2 FY26.

Geographic Revenue Split

Not specifically disclosed in the provided interim financial documents; however, the company operates out of Palakkad, Kerala, with a significant presence in the Indian domestic market and export capabilities for rubber thread products.

Profitability Margins

Net Profit Margin for Q2 FY26 stood at 5.24%, improving from 4.48% in Q2 FY25. Gross margins are heavily influenced by material costs which consumed 73.7% of revenue in Q2 FY26 compared to 74.8% in Q2 FY25, indicating a slight improvement in procurement efficiency or pricing power.

EBITDA Margin

EBITDA for Q2 FY26 was approximately INR 13.28 Cr (calculated as PBT of INR 10.51 Cr + Depreciation of INR 2.71 Cr + Finance Costs of INR 0.06 Cr), resulting in an EBITDA margin of 8.84%, up from 8.11% in the same quarter previous year.

Capital Expenditure

Consolidated purchase of property, plant, and equipment (CapEx) for H1 FY26 was INR 4.72 Cr. The company maintains a Capital Work-in-Progress (CWIP) of INR 0.41 Cr as of September 30, 2025.

Credit Rating & Borrowing

Finance costs remain exceptionally low at INR 0.06 Cr for Q2 FY26 (0.04% of revenue), suggesting a debt-free or very low-leverage capital structure. Total lease liabilities stand at INR 0.16 Cr.

⚙️ Operational Drivers

Raw Materials

Natural Latex and chemicals used for heat-resistant latex rubber thread production, accounting for 73.7% of total revenue (INR 110.86 Cr in Q2 FY26).

Import Sources

Not specifically disclosed, but typically sourced from Kerala (domestic) and South East Asian countries (imports) for high-grade latex.

Key Suppliers

Not disclosed in the available financial statements.

Capacity Expansion

Current fixed assets (Property, Plant, and Equipment) are valued at INR 166.29 Cr as of September 30, 2025, up from INR 163.16 Cr in March 2025, indicating ongoing maintenance and minor capacity debottlenecking.

Raw Material Costs

Raw material costs were INR 110.86 Cr in Q2 FY26, a 9.9% increase YoY in absolute terms, but decreased as a percentage of revenue from 74.8% to 73.7%, suggesting better cost management or higher realization per unit.

Manufacturing Efficiency

Employee benefit expenses were INR 10.97 Cr (7.3% of revenue), showing stability in labor productivity despite an 11.5% increase in production value.

Logistics & Distribution

Not specifically disclosed; included within other expenses.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

Growth is driven by the expansion of the subsidiary Premier Tissues India Limited, which contributed INR 46.05 Cr to H1 FY26 revenue. The company is focusing on increasing the utilization of its rubber thread capacity and leveraging its debt-free balance sheet (Net Worth of INR 297.86 Cr) to fund organic expansions and working capital requirements.

Products & Services

Heat-resistant latex rubber thread (HRLRT) used in apparel, furniture webbing, and medical applications; and tissue paper products (via Premier Tissues).

Brand Portfolio

RUBFILA, Premier Tissues.

New Products/Services

Expansion of the 'Premier' brand tissue portfolio into institutional and retail segments is expected to contribute 15-20% of consolidated revenue.

Market Expansion

The company is targeting increased export volumes for rubber threads to offset domestic competition and tap into higher-margin international markets.

Market Share & Ranking

Rubfila is one of India's largest manufacturers of heat-resistant latex rubber threads.

Strategic Alliances

Wholly-owned subsidiary: Premier Tissues India Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward higher-grade, heat-resistant threads for premium apparel. The tissue paper industry is growing at 10-12% annually due to increased hygiene awareness, positioning the subsidiary for steady growth.

Competitive Landscape

Faces competition from large South East Asian manufacturers and smaller unorganized domestic players.

Competitive Moat

Cost leadership in the Indian market and a strong distribution network for the 'Premier' brand in the tissue segment. The debt-free status provides a significant competitive advantage in a capital-intensive industry.