Tinna Rubber Q2 FY27 Results (NSE: TINNARUBR)
Signal: Margin expansion
The read
The trajectory improved materially after the weak FY25-to-Q1FY26 margin arc: Q2FY27 revenue growth accelerated to 31.0% YoY and EBITDA margin reached a derived 19.3%, but the dominant watchpoint is the 210bps gross-margin compression caused by raw-material intensity rising to 46.1% of revenue; PAT growth of 44.8% also exceeded EPS growth of 37.7%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹156.59 Cr | +31.0% | +0.3% |
| EBIT | ₹25.17 Cr | +35.4% | |
| Net profit | ₹17.04 Cr | +44.8% | |
| EPS | ₹9.46 | +37.7% | |
| EBIT margin | 19.3% |
P&L walk
Consolidated revenue increased to 15659.32 lakh, +31.0% YoY and +0.3% QoQ, while gross margin compressed 210bps YoY to 53.9% as material and inventory costs rose faster than sales; EBITDA margin nevertheless expanded 103bps to 19.3%, lifting PAT attributable to owners 44.8% to 1703.93 lakh.
Segments
The group reports one operating segment, while consolidated PAT of 1703.93 lakh exceeded standalone PAT of 1606.07 lakh by 97.86 lakh, showing a modest positive subsidiary and associate contribution.
Key positives
- Consolidated revenue reached 15659.32 lakh, +31.0% YoY, accelerating from +19.9% YoY in Q1FY27.
- Derived EBITDA increased 38.4% YoY to 3017.58 lakh, ahead of 31.0% revenue growth, lifting EBITDA margin 103bps to 19.3%.
- Half-year operating cash flow improved to 6660.01 lakh from negative 270.91 lakh in H1FY26, while net debt fell 995.99 lakh from March 2026.
- Property, plant and equipment increased 20.2% to 28292.31 lakh and capital work in progress declined by 910.78 lakh, indicating capex is moving into operating assets.
Key concerns
- Gross margin compressed 210bps YoY to 53.9% as raw material and inventory cost rose to 46.1% of revenue from 44.0%; the company absorbed higher input intensity despite 31.0% revenue growth.
- EPS growth of 37.7% lagged PAT growth of 44.8%, creating a per-share earnings divergence despite unchanged paid-up equity capital of 1801.58 lakh.
- Sequential momentum softened: revenue was up only 0.3% QoQ, while PAT declined 17.2% and EBITDA margin fell 299bps from the immediately preceding quarter.
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