TOLINS - Tolins

📊 NSE: TOLINS 🏢 Tyres 📅 Last Updated: 12/14/2025 14:26

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 28.71% YoY to INR 292.45 Cr in FY25. The standalone Tyre segment showed exceptional growth of 59.55% YoY, reaching INR 60.925 Cr, driven by rural penetration and dealership outreach. However, Q2 FY26 saw a 14% YoY revenue decline to INR 66.10 Cr due to deferred demand linked to anticipated GST revisions.

Geographic Revenue Split

Domestic sales dominate the mix, while exports contributed 6.4% to standalone revenue (INR 11.415 Cr) in FY25. Key international markets include the Middle East, Southeast Asia, and East Africa (Kenya, Jordan, Egypt), where the company leverages its UAE-based subsidiary, Tolins Tyres LLC.

Profitability Margins

PAT margin improved significantly from 11.45% in FY24 to 13.23% in FY25, with absolute PAT rising 48.76% to INR 38.69 Cr. Gross margins remained stable at 27.91% in FY25 compared to 27.76% in FY24, indicating effective cost management despite raw material volatility.

EBITDA Margin

EBITDA margin stood at 19.07% in FY25, a slight compression from 20.41% in FY24. Absolute EBITDA grew 20.26% YoY to INR 55.77 Cr. The margin compression was influenced by a shift in product mix and rising raw material costs, though operational profitability remains robust.

Capital Expenditure

The company historically expanded capacity to 5,000 tyres per day in 2022. Current focus is on distribution infrastructure, such as the launch of the Gujarat depot in December 2025 to reduce lead times and penetrate Western India.

Credit Rating & Borrowing

Interest costs were reduced by 49.6% YoY, falling from INR 11.58 Cr in FY24 to INR 5.83 Cr in FY25, reflecting debt repayment and improved capital structure following its September 2024 listing.

⚙️ Operational Drivers

Raw Materials

Key raw materials include natural rubber, synthetic rubber, carbon black, and petrochemical derivatives. Raw material costs reached INR 260.38 Cr in FY25, representing approximately 89% of total operational expenditure.

Import Sources

Sourced globally and domestically, with strategic backward integration for natural rubber. The UAE subsidiary, Tolins Tyres LLC, operates in the Al Hamra Industrial Zone, Ras Al Khaimah, facilitating international sourcing and quality control.

Key Suppliers

Not specifically named in documents, but the company utilizes a mix of diversified sourcing and long-term supplier relationships to mitigate price spikes.

Capacity Expansion

Current installed capacity is 5,000 tyres per day (achieved in 2022). The company is currently focusing on 'asset-light' distribution expansion, including a new depot in Gujarat starting December 1, 2025.

Raw Material Costs

Raw material costs rose to INR 260.38 Cr in FY25 from INR 175.91 Cr in FY24 (a 48% increase), tracking revenue growth and commodity price fluctuations. Mitigation involves forward contracts and regional diversification.

Manufacturing Efficiency

The company maintains high standards with ISO 9001:2015 and IATF 16949:2016 certifications, ensuring consistent quality across its retread and new tyre lines.

Logistics & Distribution

Distribution is handled through a network of 3,737 dealers. The launch of the Gujarat depot is specifically aimed at reducing lead times and improving service levels.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth is targeted through deeper penetration in untapped regions like Gujarat, expanding the dealer network beyond 3,737 partners, and capitalizing on the GST reduction on tyres. The company is also focusing on high-margin retreading solutions and tech-advanced product launches.

Products & Services

Two-wheeler tyres, three-wheeler tyres, Light Commercial Vehicle (LCV) tyres, Agricultural tyres, Precured Tread Rubber (PCTR), bonding gum, curing bags, tyre flaps, and repair kits.

Brand Portfolio

Tolins Tyres

New Products/Services

Ongoing R&D focuses on technologically advanced products to expand market share; specific revenue contribution from new launches is not disclosed.

Market Expansion

Expansion into Western India via the Gujarat depot (Dec 2025) and strengthening presence in the Far East and Africa for exports.

Strategic Alliances

Operates through wholly-owned subsidiaries: Tolin Rubbers Private Limited and Tolins Tyres LLC (UAE).

🌍 External Factors

Industry Trends

The retread tyre market is growing at a 6% CAGR due to fleet cost-cutting. The Indian tyre industry is on an upward trajectory supported by robust infrastructure growth and a GST cut on tyres.

Competitive Landscape

Faces pricing pressure in the bias tyre segment; competes by reinforcing brand recall and consistent quality.

Competitive Moat

Moat is built on backward integration (natural rubber sourcing), a massive network of 3,737 dealers, and 32 years of management experience under Dr. KV Tolin. These factors provide cost advantages and high barriers to entry.

Macro Economic Sensitivity

Highly sensitive to automotive industry cycles and infrastructure spending, which drive demand for LCV and Agri tyres.

Consumer Behavior

Shift toward value-for-money products and increased demand for retreading solutions during economic tightening.

Geopolitical Risks

Export business (Middle East/Africa) is exposed to geopolitical shifts and trade policy changes; mitigated by regional diversification.

⚖️ Regulatory & Governance

Industry Regulations

Complies with BIS (Bureau of Indian Standards) for 2/3 wheelers and LCV tyres, and U.S. Department of Transportation standards for export products.

Environmental Compliance

The company adheres to environmental and safety standards within the tyre manufacturing sector, with internal controls periodically reviewed for compliance.