Tinna Rubber Q1 FY27 Results (NSE: TINNARUBR)
Signal: Margin expansion
The read
A strong quarter: after two quarters of margin contraction (Q3/Q4FY25 OPM 12%→14%), EBITDA margin rebounded to 22.1% (+558bps YoY), the highest in at least six quarters, driven by raw material cost tailwind (RM% revenue down 604bps) and operating leverage on employee costs. Revenue growth accelerated to 19.9% from a 13% YoY in Q3FY26. PAT surge of 75% was broad-based with clean quality (other income <20% of PBT). The only concern: EPS growth lagged PAT growth, a minor flag. The new rCB/TPO facility commenced commercial sales in June 2026, but its contribution is not separately visible.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹156.18 Cr | 19.9% | -0.5% |
| EBIT | ₹30.22 Cr | 65.1% | |
| Net profit | ₹20.57 Cr | 75.2% | |
| EPS | ₹11.42 | 67.0% | |
| EBIT margin | 22.1% |
P&L walk
Revenue grew 19.9% YoY to ₹156.18 Cr. Gross margin expanded sharply by 607bps to 53.3% as raw material cost % of revenue fell from 52.7% to 46.7% (input deflation / mix shift). EBIDTA margin rose 558bps to 22.1% on both gross margin tailwind and operating leverage on employee costs (employee cost grew only 9.0% vs revenue +19.9%). Depreciation jumped 51.4% YoY reflecting new capex (rCB/TPO facility). Finance costs declined 4.8%. PAT surged 75.2% to ₹20.57 Cr, with EPS growing 67.0% to ₹11.42.
Key positives
- Revenue growth accelerated to +19.9% YoY (vs -4.4% in Q1FY26 and +13% in Q3FY26).
- EBITDA margin expanded 558bps YoY to 22.1%, the highest in six quarters, driven by raw material cost tailwind and employee cost leverage.
- Net profit surged 75.2% YoY to ₹20.57 Cr, with EPS up 67.0% to ₹11.42.
- Gross margin expanded 607bps YoY to 53.3% as raw material cost % of revenue fell from 52.7% to 46.7%.
Key concerns
- EPS growth (67.0%) lagged PAT growth (75.2%) by ~8pp, indicating possible dilution or rounding — needs monitoring.
- QoQ revenue was nearly flat (-0.5%), suggesting sequential growth stalled from a high Q4FY26 base.
- Depreciation jumped 51.4% YoY as new capacity goes live, pressuring net margins if not matched by revenue growth.
Research and educational content only. Not investment advice.