💰 Financial Performance

Revenue Growth by Segment

The company reported a 3-year revenue CAGR of 30% between FY22-FY25. In H1 FY26, the Industrial segment grew 19% YoY to INR 62 Cr, while the Infrastructure segment saw a 23% dip to INR 81 Cr due to a strategic shift away from low-margin commoditized products. The Steel segment contributes 20% and the Consumer segment 6% of total revenue.

Geographic Revenue Split

India remains the primary market, but global operations are expanding. Oman (Global Recycle LLC) contributed INR 19 lakh to PBT in H1 FY26. New expansions are underway in South Africa (Mbodla Investments) and Saudi Arabia (Tinna Rubber Arabia) to de-risk the business model and diversify sourcing.

Profitability Margins

FY25 PAT margin stood at 9.57%. In Q2 FY26, standalone PAT margin improved to 10.6% (INR 12 Cr) from 9.0% in Q2 FY25. The company targets a Vision 2028 PAT margin improvement driven by higher-value product conversions and global scale.

EBITDA Margin

Consolidated EBITDA margin was 15.07% in FY25. Q2 FY26 standalone EBITDA margin strengthened to 18.5% (up from 15.7% YoY) due to selective reduction in low-margin sales and techno-commercial upselling to higher-value products.

Capital Expenditure

Tinna is investing INR 50 Cr in the rCB (Recovered Carbon Black) Pyro business, which is expected to generate INR 100-125 Cr in revenue by FY27. Total tyre crushing capacity is expanding from 185,000 MT in FY25 to an estimated 235,000 MT in FY26.

Credit Rating & Borrowing

The company holds a CARE BBB-; Stable rating (reaffirmed Oct 2025). Net Debt to Equity ratio was 0.73x in FY25. Improved credit profile allows for better access to capital for organic and inorganic growth opportunities.

⚙️ Operational Drivers

Raw Materials

The primary raw material is End-of-Life Tyres (ELT), processed into Crumb Rubber and other derivatives. Raw material costs are a significant factor, with the Oman unit experiencing a temporary INR 27 lakh loss in Q2 FY26 due to higher feedstock costs.

Import Sources

ELT is sourced globally from the USA, Chile, South Africa, Australia, Oman, Europe, and Middle Eastern countries to ensure a stable supply chain and optimize procurement costs.

Key Suppliers

Not disclosed in available documents; sourcing is described as diversified across multiple global regions to mitigate vendor dependency.

Capacity Expansion

Current tyre crushing capacity is 185,000 MT (FY25). Planned expansion aims for 235,000 MT by FY26 and 275,000 MT by FY27. The number of operational locations is targeted to increase from 6 in FY25 to 10 by 2028.

Raw Material Costs

Raw material costs are managed through global sourcing. Management is mitigating cost spikes (like the 2% volume dip in H1 FY26) by exploring alternative feedstock options and prioritizing high-margin product mix.

Manufacturing Efficiency

In Q2 FY26, capacity utilization was 74% in India and 78% in Oman. H1 FY26 utilization was 77% in India and 85% in Oman, reflecting high asset sweating.

Logistics & Distribution

Distribution is handled through a PAN-India manufacturing presence, which lowers transit costs to infrastructure projects and industrial clients.

📈 Strategic Growth

Expected Growth Rate

25%+

Growth Strategy

Growth will be achieved through a 'Vision 2028' plan to reach INR 1,000 Cr revenue. Key pillars include expanding tyre crushing capacity to 275k MT, launching 3 new construction chemical product lines (grout repair, accelerators), and scaling the rCB Pyro business to contribute INR 100-125 Cr by FY27.

Products & Services

Crumb Rubber, Crumb Rubber Modified Bitumen (CRMB), Bitumen Emulsion, Hi-Tensile Rubber Compound, and Recovered Carbon Black (rCB).

Brand Portfolio

Tinna, TP Buildtech (Associate).

New Products/Services

New product lines in construction chemicals (grout repair, mould releasing agents) and rCB. The rCB business is expected to be margin-accretive, operating at ~20% margins.

Market Expansion

Expansion into Saudi Arabia (commissioning mid-FY27) and South Africa (breakeven expected by Q4 FY26). Domestic expansion includes a new unit in Kolkata to cater to the Eastern region.

Market Share & Ranking

Tinna is one of the largest manufacturers of crumb rubber powder in India with a PAN-India presence.

Strategic Alliances

Joint Venture: Mbodla Investments (Pty) Limited (South Africa). Associate: TP Buildtech Private Limited and Fratelli Vineyards Limited.

🌍 External Factors

Industry Trends

The global recycled rubber market is growing due to sustainability mandates and EPR regulations. Tinna is positioning itself as a circular economy leader by converting waste tyres into high-value industrial raw materials.

Competitive Landscape

Competitors include informal sector recyclers and smaller regional players. Tinna's advantage is its scale and compliance with formal EPR frameworks.

Competitive Moat

Moat is built on a 'de-risked' global sourcing network, proprietary R&D for high-tensile products, and a PAN-India manufacturing footprint that is difficult for smaller, informal recyclers to replicate.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending, particularly road and highway construction, which drives 46% of revenue.

Consumer Behavior

Increasing demand for sustainable and 'green' products in the industrial and tyre segments is driving manufacturers to adopt Tinna's recycled rubber.

Geopolitical Risks

Trade barriers or export/import restrictions on waste tyres could impact the supply chain. Global sourcing across 5+ regions is used as a hedge.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by pollution norms and waste management rules. Stricter enforcement of EPR is expected to bring more informal recyclers into the regulated framework, benefiting Tinna.

Environmental Compliance

EPR (Extended Producer Responsibility) regulations are a critical driver. Compliance costs are integrated into the business model, and EPR certificates are now a core part of revenue negotiations.

Taxation Policy Impact

Not specifically detailed, but financial statements are prepared under applicable Indian Accounting Standards.

Legal Contingencies

The company maintains an audit trail as per statutory requirements. No specific high-value pending court cases were detailed in the provided snippets.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the stabilization of new international units (South Africa/Saudi) and the impact of the extended monsoon on domestic infrastructure demand.

Geographic Concentration Risk

Revenue is currently concentrated in India, but the strategy is to increase exports to 30% and scale overseas manufacturing to reduce regional risk.

Third Party Dependencies

Dependency on global ELT suppliers is mitigated by sourcing from multiple continents (USA, Europe, Australia).

Technology Obsolescence Risk

Risk is low as the company is leading the shift to rCB and high-tensile recycling technologies, though it requires continuous R&D investment.

Credit & Counterparty Risk

Receivables quality is supported by associations with reputed and diversified customers in the steel and tyre industries.