Indag Rubber Declares Q4 and FY26 Results; Profitability Rises Amid Revenue Moderation
New Delhi: Indag Rubber Limited, a leading tread manufacturing company in India, has announced its Audited Financial Results for the fourth quarter and financial year ended March 31, 2026. The results showcase strong profitability growth despite some moderation in overall revenue for the fiscal year.The detailed Q4 and FY26 financial highlights are as follows:
| Particulars (Rs. Crs.) | Q4 FY26 | Q4 FY25 | Y-o-Y | Q3 FY26 | Q-o-Q | FY26 | FY25 | Y-o-Y |
|---|---|---|---|---|---|---|---|---|
| Total Revenue | 63.16 | 57.86 | 9.2% | 58.74 | 7.5% | 224.81 | 236.90 | -5.1% |
| EBITDA | 6.33 | 3.49 | 81% | 5.96 | 6% | 22.43 | 16.48 | 36% |
| EBITDA Margin | 10.0% | 6.0% | 400 bps | 10.1% | -10 bps | 10.0% | 7.0% | 300 bps |
| Profit After Tax | 3.55 | 1.65 | 115% | 3.37 | 5% | 12.38 | 8.42 | 47% |
| PAT Margin | 5.6% | 2.9% | 270 bps | 5.7% | -10 bps | 5.5% | 3.6% | 190 bps |
CEO Highlights Operational Excellence and Cash Flow Growth
Commenting on the results, Mr. Vijay Shrinivas, CEO and Whole Time Director of Indag Rubber Limited, noted that Q4 FY26 saw total revenue increase by 9% year over year (YoY) to ₹63.16 crores. EBITDA grew by 81% YoY to ₹6.33 crores, achieving a 10.0% margin, while Profit After Tax more than doubled, reaching ₹3.55 crores from ₹1.65 crores in the previous period.For FY26, total revenue stood at ₹224.81 crores, reflecting a 5.1% decline YoY, attributed primarily to weaker STU volumes in Q1. Despite this topline moderation, profitability improved significantly; EBITDA grew by 36% YoY to ₹22.43 crores, and the PAT margin expanded by approximately 190 basis points (bps) to 5.5%.
The company reported operating cash flow of ₹19.7 crores in FY26, up from ₹6.5 crores in FY25. This growth was driven by enhanced profitability and a reduction in the working capital cycle, achieved through disciplined credit control and optimized raw material supply chain management.
Board Recommends Dividend; Strategic Focus Remains on Customer Value
The Board of Directors recommended a final dividend of ₹1.5 per equity share (face value ₹2/-) for FY26. This brings the total dividend for the year to ₹2.40 per share, inclusive of the ₹0.90 interim dividend previously paid in November.Indag Rubber continues its focus on operational excellence and customer-centricity. The company is actively managing escalating input costs due to the West Asia situation through raw material monitoring, calibrated price pass-through mechanisms, supplier and geography diversification, product-mix optimization, and disciplined working capital management.
The economic proposition of retreading remains strong; a retreaded tyre can save up to approximately 70% of new tyre cost and reduce the cost per kilometer to nearly one third for fleet owners in India. Environmentally, the process saves 57 liters of oil and 44 kg of rubber, translating to about 136 kg of lower CO2 emissions compared to a new tyre.
Subsidiary Achieves Milestone in Green Energy Transition
Indag Rubber’s subsidiary, Millenium Manufacturing Systems, which is an EMS provider in the power-electronics segment supporting the global green energy transition, achieved a significant milestone in FY26. The company progressed from factory homologation to securing its first commercial serial order for power conversion systems intended for Battery Energy Storage Systems (BESS).Indag Rubber Limited has been pioneering Cold Retreading Technology in India since its founding by Khemka Group in the early 1980s. The company operates a state-of-the-art manufacturing unit at Nalagarh Industrial Estate, Himachal Pradesh, with an annual capacity of 20,000 tons for Precured Tread Rubber (PTR) and allied items.
Stock Price Movement
Indag Rubber Ltd. settled on Wednesday at ₹81.76, sinking 2.83% in the close of trading. Shares traded within a wide intraday range, moving from a low of ₹79.95 to an intra-day high of ₹84.89.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.