Tinna Rubber Q1: consolidated PAT ₹20.6 Cr up 75% YoY as margins expand ~420 bps

Tinna Rubber's Q1 FY27 consolidated print was strong on profitability. Revenue from operations rose 19.9% YoY to ₹156.18 Cr (year-ago ₹130.27 Cr) but was flat sequentially (₹156.95 Cr in Q4FY26), while consolidated PAT jumped 75.2% YoY to ₹20.57 Cr from ₹11.74 Cr and 24.4% QoQ from ₹16.53 Cr. The story is operating leverage, not topline: net margin expanded to 13.2% from 8.99% a year ago (and 10.47% last quarter), and operating margin widened to roughly 21-22% versus ~16% a year ago. EPS was ₹11.42 (₹6.84 YoY). There are no exceptional items on either side, so the 75% growth is the underlying number — a genuine margin-led result, not an optical one.

The margin gain came from cost discipline as revenue held: cost of materials consumed actually fell YoY (₹65.81 Cr vs ₹50.75 Cr a year ago moves with volume, but the expense base grew slower than income), and the inventory swing (a ₹4.19 Cr build vs a ₹6.33 Cr drawdown last quarter) flattered gross margin this quarter. This is the first full quarter reflecting dispatches from the new rCB and TPO facility (commissioned late June), which should support the value-added mix. The consolidated result also absorbs the two overseas subsidiaries (Saudi, Oman) and the T.P. Buildtech associate (+₹0.17 Cr share of profit); the Mbodla JV in South Africa contributed a small loss. Standalone tells the same story — revenue ₹150.85 Cr (+18.5% YoY), PAT ₹20.11 Cr (+83% YoY) — so the divergence between the two bases is immaterial.

The stock went into the print at ₹1,042, up 18% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 5 consecutive quarters.

₹3.25 final dividend recommended for FY26 — results un-audited, limited review clean

Against management's own FY27 guidance (20-25% revenue growth, EBITDA margin above 18%), the quarter is on track: revenue growth of 19.9% sits just at the lower edge of the range, while margins already run comfortably above the 18% floor, confirming the confident tone from the May concall. There is no formal Q1 street consensus for a company this size; the only public anchor is analyst modelling of ~15-20% FY27 PAT growth, which the +75% YoY Q1 print runs well ahead of. Concurrent corporate actions reinforce the expansion thesis — the company incorporated a wholly-owned Chile subsidiary (Tinna Rubber Chile SpA) to secure end-of-life-tyre supply, and recommended a ₹3.25 final dividend for FY26. The watch is whether topline growth accelerates toward the 20-25% target in coming quarters, since Q1 came in flat sequentially, and whether the elevated ~21% operating margin holds as new-facility volumes ramp.