Tinna Rubber and Infrastructure Limited (BSE: 530475) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Gaurav Sekhri — Joint Managing Director
Subodh Kumar Sharma — Whole Time Director
Analysts:
Unidentified Participant
Kushal — Analyst
Devika Jagtap — Analyst
Ashwath Rajan — Analyst
Kamal Jeswani — Analyst
Manish — Analyst
Raghav Bansal — Analyst
Presentation:
operator
Sa. Sam. Ladies and gentlemen. Good day and welcome to the Tina Rubber and Infrastructure Limited Q3FY26 earnings conference call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. From Go India Advices LLP. Thank you. And over to you, ma’.
Am.
Unidentified Participant
Thank you, Anushka. Good afternoon everybody and welcome to Tina Rubber and Infrastructure Limited’s earnings call to discuss the Q3 and 9 month FY25 results. We have on the call Mr. Gaurav Sekri, Joint Managing Director. Mr. Subhu, Chief Operating Officer and Mr. Ravindra Chhabra, Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Gaurav Tekri to take us through the business outlook and financial highlights. Subsequent to which we will open the floor for Q and A.
Thank you. And over to you, sir.
Gaurav Sekhri — Joint Managing Director
Thank you. Sana, am I audible okay?
operator
Yes, sir.
Gaurav Sekhri — Joint Managing Director
Thank you. Good afternoon everyone. Thank you for joining us today on this call. Our financial results and earnings presentation are available on our website and on the stock exchanges. I believe you have had a chance to review the same. I will briefly take you through the strategic updates post which my colleague Subodh our COO will take over and give details about the operational and financial performance highlights for the quarter. I am pleased to share that Tina has achieved strong ebitda margins of 16% plus both on quarterly and nine month ending basis. Reflecting our robust performance and continued operational efficiencies.
Tina Rubber continues to progress steadily towards Vision 2028. Which is to achieve 1000 crore of revenue by FY28. Enhancing our profitability by over 33%. And with having a target EBITDA margin of 18% plus with ROCE exceeding 30%. Outlined below are the key strategic updates that support the company’s progress towards achieving Vision 20. Am I audible? Sana, can you clarify?
operator
Yes sir. You’re loud and clear.
Gaurav Sekhri — Joint Managing Director
Okay, I just got a strange beeping sound in between. Anyway, here is the. Here are the strategic updates. I’m happy to share that Keena has received a two year work order from Indian Oil Corporation.
operator
It seems like the line for the management has been disconnected. Please Stay connected till I rejoin the management. Sa. Thank you for waiting patiently. The management line has been connected sir. You can proceed.
Gaurav Sekhri — Joint Managing Director
Hi. So I will continue. We have received a two year work order from Indian Oil Corporation. The value of this is approximately 76 crores which helps us meet our targets on the infra business for this year. On the CAPEX front, the company has completed capital expenditure of approximately 79 crores during nine month period of FY26. In addition, a further capex of around 50 crores is planned to be incurred over the balance of FY26 and in FY27. Substantial progress has been made in the deployment of QIP proceeds with only about 45 odd lakh rupees balance. On the cost reduction front, renewable energy capacity is being scaled up more than threefold from 1.2 C megawatt to 4.48 megawatt with completion targeted by end of Q4 of FY26.
Renewable energy accounted for 24% of total power consumption in nine month period and is targeted to rise to 32% by end of FY26 and over 50% by FY27 N aligning us with our ESG goals, these initiatives are expected to deliver savings of approximately 4 crores in FY26. With solar power already contributing 2 crores. Plus in the 9 month period, Tina. Has also allocated 5 crores towards R and D expenditure. In order to be future ready, TINA. Has initiated a comprehensive life cycle assessment study to measure GHG emissions from tire recycling and conversion into recycled raw materials. The report is expected to be completed by end of this financial year. A brief update on the various projects I am pleased to inform Varleh plant is now operating at 80% capacity utilization supported by strong post monsoon demand from infra and consumer segments. The PCMB business has been slow to contribute and is at only around 4% contribution in the nine month period of FY26 and is operating currently at around 40% capacity utilization. We expect the capacity utilization to improve to approximately 45% by end of FY26 and the Division is targeting annual revenue contribution of almost 8 to 10% in the next financial year.
The Pyrolysis and RCB project is progressing as per plan. We expect trial runs to commence by the end of Q4. 26. Significant equipment upgrades and process enhancements have been undertaken to deliver best in class quality of rcb. The project is planned as a fully integrated operation spanning tire recycling through to powdered and pelletized RCB production on TP Biltech I would like to share that the strategic growth initiatives are underway with introduction of three new construction chemical product lines, grout repair, bold release agents and accelerator. We expect all of these products to contribute substantially in the coming financial year. Also, the new plant commissioned in Kolkata which is our third plant is still in the stabilization phase. Currently operating at a low 15% to 20% capacity utilization.
But we expect this to improve over the next two to three quarters on the international projects. In Oman the plant is operating at 80% capacity utilization up to 9 month period. FY26 it has achieved revenue of 25 crores. And 40% of sales are within the GCC region. And we are targeting this to rise to 70% by Q4 or Q1 of next year. A 20% reduction in ELT cost is also targeted in Q4 of 26 supporting margin and profitability improvement. In Saudi, a plot of 13,000 square meters has been allotted to us for setting up a 24,000 ton per annum tire recycling facility.
operator
It seems line. Seems like the line for the management has been disconnected. Please stay connected till I rejoin the management. Sam. Thank you for waiting patiently. The management line has been connected again. So you may proceed.
Gaurav Sekhri — Joint Managing Director
Yeah, so Gaurav Sekri is here. I’ll continue. In Saudi Arabia a 13,000 square meter plot has been allotted for a 24,000 ton per annum recycling facility. We expect the project to commence. We expect to commence work on site from mid of FY27. The project timeline has been recalibrated to align with the ongoing expansion in Oman and South Africa. With all requisite approvals in place. In regards to South Africa, the Phase 1 CapEx has been completed and operations have commenced for cutting, baling, shredding and exporting of process material for onward recycling in India in phase two which is full scale of recycling.
We expect to take this work up in the coming financial year. As of now the South Africa venture is losing money. But we are expecting to stabilize and we expect to beginning. We expect to begin breaking even in our operations from Q2 of FY27. With that I would like to hand over to Subodh for his insights on operational and financial performance. Go ahead Sibod.
Subodh Kumar Sharma — Whole Time Director
Thank you Gauravji. Good afternoon everyone. Regarding our operational performance, Tire cushion volumes have grown by 25% on quarter on quarter basis and 7% on nine month basis. Supported by post monsoon recovery in demand across infrastructure and consumer sector. Also it is worth mentioning that exports continue to be the strong growth catalyst. With the company targeting a robust 50% volume increase by end of Q4 FY26 in nine months of the financial year, the industrial, consumer and steel segments recorded revenue growth while the infrastructure segment witnessed moderation primarily due to strategic shift towards value added products. The industrial segment recorded a strong 18% YoY revenue growth despite global economic headwinds, export volume increased by 20% on year on year basis MRP, micronized rubber powder and reclaimed rubber volumes grew by 21% and 7% respectively while the rubber conveyor and rubber molded goods industry remain stable.
On the infrastructure segment side we recorded a modest revenue dip reflecting a deliberate shift towards higher value added products. This strategic focus supported strong volume growth with cram rubber modifier volumes increasing by 80% on year on year and emulsion business growing by 15% on yoy basis. The consumer segment though reported 10% revenue growth but despite a margin decline in volumes reflecting the impact of price correction, demand outlook remains positive supported by seasonal recovery following the extended monsoon and improving market liquidity with consumer sales continuing to remain a key focus area. On the steel segment side which remains stable with revenue increase by 2%, steel abrasive business steadily maintained while revenue growth trailed volume growth due to volatility and the downward trend in the steel prices coming to nine month financial performance At a standalone level, revenue revenue remained stable while EBITDA and PAT margin expanded by 200bps and 110bps respectively to 16.8 and 9.6% reinforcing PNAS strong performance and sustained operational efficiency.
At the console level, EBITDA margin improved by 110bps while revenue and PAC remained stable due to the net impact of initial startup cost and profile Profile profits across associates, JVs and subsidiaries which is expected to normalize in the coming quarters. Global Recycle Oman contributed 35 lakhs at the PAT level while Border Investment South Africa and Tina River Arabia reported a combined loss of 1.46 crores. EPR credit amounting to 23.9 crore is included in 9 month FY26 revenue as against the EPR revenue of 24.4 crore recorded in the same month previous financial year. Coming to the.
operator
It seems like the line for the management has been disconnected. Please stay connected till I join the management back. Sam. Ra. Foreign. Thank you for waiting patiently. The management line has been collected so you can proceed.
Subodh Kumar Sharma — Whole Time Director
Yeah, so Subodh is back again. So coming to the quarterly financial performance Consolidated revenue increased by 13% on YoY basis and 16% on quarter on quarter basis led by higher tire processing volumes, EBITDA and PAT grew strongly by 53% and 57% on YoY basis respectively, with margin improving to 16.3% and 9.2%. Tina river is consistently advancing towards its Vision 2028. Driven by disciplined capacity additions, focused capital deployment, global sourcing initiatives and enhanced business integration. With a diversified product mix, a strong international footprint and an experienced leadership team. Supported by continued stakeholder confidence, the company remains well placed to deliver sustainable long term growth.
I would now like to open the floor for question and answer. Thank you and over to you moderator.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Kushal from Asian Broking. Please proceed.
Gaurav Sekhri
Yes Kushal, go ahead.
Kushal
So my first question is we have noticed that revenue per tire crushed has been falling like a revenue or Tinaraba makes for one metric ton of tire crushed. This percentage has been falling like we have calculated this. So is there any reason for this? Sir?
Gaurav Sekhri
Hi Kushan. I know nothing specific. Actually you know our both the tire mix, the type of tires we crush changes from time to time as well as our revenue mix also changes. So we don’t really look at numbers like that. It’s an interesting observation that you have made, but I don’t draw any special inference to this which has any impact to our business.
Kushal
This basically depends on the quality of tires. So. Okay. Okay. So my other question is by human coming from Iran. So is this being impacted with the ongoing Iran US conflict?
Gaurav Sekhri
Gaurav Again, we do not participate in bitumen imports. That’s point number one. So we don’t tend to track how that impacts the business because we leave that aspect to road contractors and bitumen importers. That’s a very specialized business. Our interest is limited to modifying that bitumen either which is produced in petrochemical refineries or on site of contractors, whatever be their source of bitumen.
Kushal
Okay, thank you sir.
Gaurav Sekhri
Okay, thanks.
operator
Thank you. Before we proceed with the next question, a reminder to the participants in order to ask a question, you may press star and one on your touchstone telephone. Before we proceed with the next question, a reminder to the participants in order to ask a question, you may press star and 1. We take the next question from the line of divesh Jagat from yes, securities. Please proceed.
Devika Jagtap
Yes, hello sir, Am I audible?
Gaurav Sekhri
Yes, please go ahead.
Devika Jagtap
Yeah, so can you throw some light on the life cycle study that you have initiated on the greenhouse gas emissions on the tires and like what are the expectations of cost saving from the study?
Subodh Kumar Sharma
Yeah, hi, this is Subodh here. So this study has been assigned to determine the current level of greenhouse gas emission. As you know, we have accordingly have to align ourselves with the ESG goal going forward. So currently we have assigned the project with the QACA wherein we shall be determining like you know, pick up from my yard to processing and converting it into the crumb rubber or micronized rubber powder or reclaim rubber and making finished good right up to my exit gate. Right. So this numbers will help us further to decide our ongoing, you know, ESG goals for the next financial year. These are the requirement with most of the tire industry on the greenhouse gas emission coming out of the process and the product we are manufacturing. So this is nothing related to the cost side, but this is a. This is actually related to the ESG goals of the company.
Devika Jagtap
Okay. Okay. And my second question is regarding, are we exploring any global location for expansion. Like other than the ones that we are right now expanding right now? Also, where do you expect your contribution. Of Oman in FY26 and FY27 in the top line?
Gaurav Sekhri
Hi, Gaurav Sekri. Again we expect Oman to stabilize around annual revenues of approximately 30 to 36 crores. And its contribution will be about 5% in the overall business of Tina Rubber. We expect Saudi to be similar when it becomes fully operational and online. And South Africa, at least for next year or so will serve the purpose of feeding into our recycling facilities by originating ties from there. So that is the plan that I can share with you as of today.
Devika Jagtap
Okay, got it. And my last question is regarding that you are expanding tire threshing capacity in India to 1.85 lakhs. So how is this progressing and has the capacity increased to some extent in. The current nine months?
Subodh Kumar Sharma
See, currently we have capacity to recycle around 185,000 tons of tires going forward. Like as we have, you know outlined our vision 2028 to increase from 7 location. Currently we are operating 7 to reach at 10 and to reach on the tire recycling capacity of 250,000. So that is in pipeline and it is progressing you in a right direction. So it is aligned with our 2028 vision.
Devika Jagtap
Okay. Okay sir, got you.
operator
Thank you. Before we proceed with the next question, a reminder to the Participants, in order to ask a question you may press star and one on your touchstone telephone. A reminder to the participants, in order to ask a question, please press star and one on your touchstone telephone. We take the next question from the line of Aswath Rajan from Arihan Capital Markets limited. Please proceed.
Ashwath Rajan
Hello sir. Thank you for the opportunity. My question was specific on the PCMB business. I see on our presentation we have forecasted a thousand metric tons for Q4FY26E. I just wanted to understand what gives us this conviction and based on 1000mt volume, what kind of revenues are we expecting for Q4?
Gaurav Sekhri
Hi, Gaurav Sekri here. See we have been, you know, we started our PCMB business I think a little over a year ago and it’s a new space for us. But we see some complementarity between tire recycling as well as polymer composites master batches. And that is why we took steps to get into this activity. We have started seeing some green shoots, some good response. Repeat business from existing customers is good. Which means our pricing, our quality is meeting expectations. And this has happened more so in, in the last couple of months. Therefore we feel confident that now to scale up should be compared to the last one year should be easier because we have greater degree of understanding and confidence on our products.
So that is why we feel we should be able to get 2,000 tonnes.
Ashwath Rajan
Okay, so, and how much does this translate to in terms of revenue for a thousand metric units?
Subodh Kumar Sharma
Yeah, hi. So both here. So we expect the quarter four wherein we are estimating thousand crores of volume. So this comes out somewhere close to 75 to, sorry, 7.5 to 10 crores in between based on the product mix. And I think to answer your question, next year this could be around 50 to 60 crores in top line. Right. Which will be somewhere around 7 to 8% of our, you know, next year estimated top line business. Okay. And based on that similar number, if you scroll down, if you go further below, how much does this give on, on an EBIT level and on a back level the specific segment. See the EBITDA profile of this business at this point of time is lower than our overall, you know, EBITDA profile of the. But like I said, it is early days. I think it’s, it’s. I can only answer this question by saying one step at a time and we have to steadily scale up and then we’ll be in a better position to give you a guidance.
Ashwath Rajan
Okay sir, got it. And if, if I were to ask what is the volume target for 27 as an entire year for TCMB. Approximately six or thousand tons. Okay, so thank you so much.
operator
Thank you. Before we proceed with the next question, a reminder to the participants, in order to ask a question you may press star and one on your touchstone telephone. I request participants, in order to ask a question, you may press star and one on your touchstone telephone. We take the next question from the line of Kamal Jaiswani. From you first Capital. Please proceed.
Kamal Jeswani
Yeah, hi. Thank you for taking my question. I wanted to know that what is the reason for this margins coming down this quarter compared to last correspondence on September 25th quarter. So just wanted to know the reason for this. And out of the tires we are importing, how much is, I mean how much are we. It’s imported tires. And how much is domestic procurement and how much do we have the license for importing?
Gaurav Sekhri
So Kamal, firstly our margins are up compared to previous quarter, not down. And second, you know we, we are majority processing imported tires in our facility. And I think in terms of what licenses, balance, etc. It is too specific. And also I think sensitive to our business. And we don’t want. We will not share that information.
Kamal Jeswani
Okay, so majority is imported you are saying in domestic we don’t procure too much.
Gaurav Sekhri
Like I said, majority of what we process is important.
Kamal Jeswani
Okay. Okay, got it. Thank you.
operator
Thank you. We take the next question from the land of Siddhi Kayal from Aditya Birlamani. Please proceed.
Unidentified Participant
Hello, am I audible?
Gaurav Sekhri
Yes, yes. Please go ahead.
Unidentified Participant
Can you give us guidance on the performance of. Ma’, am, your voice is coming a bit muffled. Could you please fix that? Yeah, Now. Now is it clear?
Gaurav Sekhri
Do we still have challenge to hear you clearly, ma’. Am.
Unidentified Participant
Okay, I’ll call back in the screen. Hello.
operator
We take the next question from the line of Karan Gupta from Acmil. Please proceed.
Unidentified Participant
Yeah, hi.
Gaurav Sekhri
Yes, Karan, go ahead.
Unidentified Participant
Yeah. So my question is regarding the demand side of the infrastructure segment. And what are the green shoots you are seeing on the consumer segment? Can you repeat again please? My question is regarding the demand side of infrastructure projects. What is the demand scenario? Now as you noticed in quarter one, quarter two, due to infrastructure, I mean the delay in the projects and also the monsoon side impacted our top line in quarter one, quarter two. Now. Yeah, so what’s the infrastructure thing? And the second piece is the consumer segment.
Gaurav Sekhri
Yeah, so you know, I will try. To answer your question. So in the infrastructure segment side, as you know, you know this year we have witnessed an extended monsoon. I Think by mid of October it was a rainy condition. So normally you know the con our consumer segment which is all about where in lot of rubber granules are being used for these post surfing and the playground surfaces. That business as well as the infrastructure segment where you know road laying etc happens immediately after the monsoon and it continue to happen you know in rest of the months. So only winter months are slightly impacted in the northern part of India.
Otherwise you know post monsoon the work infrastructure segment and consumer segments especially the sports turf and all it picks up. So we are witnessing some growth there. And that’s the reason you can see the volumes are up if we compare over Q2.
Unidentified Participant
Okay. And the infrastructure projects which is said was delayed in quarter two quarter one now it’s picking up.
Subodh Kumar Sharma
Yeah. See see infrastructure segment is you know the road construction business is actually the business. You know with monsoon seasons typically three to four months it’s completely on halt. So the progress best progressing month are actually the February to July but it picks up after the monsoon and then some effect of winter. That too only the northern India states otherwise it’s continued to happen you know from October to till next July.
Unidentified Participant
Okay. Okay.
Gaurav Sekhri
Yeah.
Unidentified Participant
And second is on the guidance side. So FY26 guidance 600 crore you were saved in the last quarter is achievable right now not I think something 520 crore on TM basis SBC. So what’s the guidance for F26? And then you’ve also mentioned last no next three years of balance estimated something 25 20% growth. So what was what will be the lever in 20? 25% growth. So new capacity addition or it will be your new value added products. That’s it.
Gaurav Sekhri
Okay. So Karan just to answer your question I think you missed our quarter two earning call wherein we revised our guidelines for the revenue from FY26. So the same we are maintaining in the FY26 we have visibility of 8 to 9% of revenue growth over previous financial year. But as you know there’s a lot of capex has been done in the last couple of months to set up RC and pyro plan to strengthen the PCMB business and some of our overseas operations. So this all are at the level like you know this all is going to contribute in the FY27.
So we expect consistently around 15 to 18% maybe 20% growth year on year from here onwards.
Unidentified Participant
Okay? Okay. Okay. And for 2728 the levers of crude. The guidance you already given in the ppt. Yeah, the levers of growth.
Subodh Kumar Sharma
The levers of growth is like you know the barley we set up in the last two, three years. Two years and now the PCMP business, now the RCB and pyrolysis business and top of that the Saudi Arabia expansion and the you know, full fit tire recycling operation in South Africa. These all are going to contribute in the next three years because all these capex are almost done except the Saudi Arabia which will be ready by mid of the next financial year.
Unidentified Participant
Okay. Okay. Yeah, thank you.
operator
Thank you. We take the next question from the line of Dipesh from Manya Finance. Please proceed.
Unidentified Participant
I am audible.
Gaurav Sekhri
Yes, please go ahead.
Unidentified Participant
Okay, I missed the early part of the call, I joined in late. So if there are any repeat questions and excuse that, what are the trends of raw material prices in Q3 FY26? Are they still high? And what is our percentage of import and domestic procurement of tire scrap in nine months of FY26? So firstly there is fair bit of now stability in the price of raw materials and even if there are some fluctuations in some kind of tires or in some origins, because of the diversity that we have now in our business of being able to process multiple kinds of tires from different origins, we are able to control it reasonably well as of now.
So the short answer is there’s fair bit of stability and second in terms of tires that we process, we continue to process majority of the tires which we import and you know, that’s what we can share with you on this call. Okay. And I missed on to the guidance which is given for FY26 of top line and bottom line what will be a guidance for FY27 and are you confident that you will be able to achieve your vision 2028? We have to go with the assumptions that the capex underway will give us the desired results. And with that assumption in place we continue to be confident that vision 28 of thousand crores is possible. That’s point number one. And we expect to finish this financial year FY26 between 530, 540 which is in line with the revised guideline we were giving in Q2 and in the coming financial year we are still locking down on our business plan and numbers but with the assumption of our RCB pyrolysis plant commencing production etc.
I believe we will be, you know, very close to 700 or over 700 crores. Around 700 crores FY27. Okay. And please let me know what is. Your current working working capital days as of now the nine Months. And do you expect it to be. The same going forward?
Gaurav Sekhri
So we are operating at around 50 days currently and we don’t expect that to change going forward. Sorry, I missed the number. How many days? Five. Zero. Fifty.
Unidentified Participant
Okay. Okay, thank you so much.
Gaurav Sekhri
Yeah, thanks.
operator
Thank you. We take the next question from the line of Yashpur BHE from InvIT Research. Please proceed.
Unidentified Participant
Yeah, hi, am I audible? Yes. Yes, please proceed. So thank you for this opportunity. So firstly on the CAPEX side, so are we on track? Like earlier we had guided that by Q4 the trials will be completed. So are we on track? Have we received all the approvals or are we facing any challenges or any delays? There are always some challenges in doing capex and a project but nothing which we are unable to manage. It is proceeding quite well. And we expect to commence trials on the pyrolysis plant certainly within Q4 and the RCB plant in Q1, FY27.
Okay. So sir, are we expecting any revenue in Q4 from these projects? Your question is, are you, are we expecting any revenue from the current CapEx? Yeah, in Q4. In Q4.
Gaurav Sekhri
Yeah, I believe so. Towards the end of Q4 some small contribution could begin. But irrespective of that our earning, you know, our revenue guidance of around 540 crores is, you know, we are confident of getting that number. I just wanted to know like we have guided around 8 to 9% of the growth for whole year but if we compare for nine months we have done only 3% growth. So in Q4 we would have to do nearly 20% of growth. So are we confident of achieving this growth in Q4? Like I said, you know, 540 crores revenue for FY26 is within our reach and I believe we’ll deliver it.
Okay. And lastly one question on like by when do we expect the south except from Oman, other international projects to contribute positively? Oman has already begun contributing positively again. We saw the turnaround in the business in November, further consolidating nicely in December. And we think January we should see even better performance from Oman.
Subodh Kumar Sharma
Other international projects like Saudi Africa and. All South Africa will take some time. South Africa, we continue to incur some loss but you know, it’s a new complex market. It will take I think another few months to stabilize it is my estimate. And I think we had mentioned that in our opening speech that we expect South Africa operations to begin breaking even from Q1 of FY27. Okay sir, thank you.
Unidentified Participant
Those were the questions.
operator
Thank you. We take the next question from the line of Manish, an individual investor, please proceed. I would request Mr. Manish to unmute and then speak. We will proceed with the next participant. We take the next question from the line of Puneet, an individual investor, please proceed.
Manish
Hi, I’m Oriban.
Gaurav Sekhri
Yeah, Puneet. Please go ahead.
Manish
Okay, so my question is a lot of Indian tire manufacturers are in capex for the next few years and we have a EPR policy also. So I want to hear your thoughts. How much upside impact that would cause in the next three, four years for our consumer. And second question which you can take right away with this is how is the raw material impact is hurting us? Can you bring it down for us in terms of.
Gaurav Sekhri
So if I understood your question correctly, I think your first question was that tire companies are expanding capacity. How will that impact us? Correct.
Manish
Along with EPR policy.
Gaurav Sekhri
So firstly in regards to, you know, it is good news for us if more tires are made in India that means greater demand for our recycled rubber materials. As you know, we are approved with all. I would say you know of the leading tire manufacturing companies in the country. So that is positive for us and will have positive impact on demand. In regards to epr, I think, you know, the two things are not so connected. When we recycle more tires, we will generate more epr. And if tire companies are producing more tires, they will need more epr.
So you know, that’s how this whole ecosystem is built.
Manish
Okay, I got it.
Gaurav Sekhri
Okay, thank you. I didn’t hear you. Sorry.
Manish
Second question is on the raw materials. So our raw material cost is increasing. So what are your cost to bring it down in the coming years?
Gaurav Sekhri
Our raw material costs are stable. Especially since last two quarters we have increased optionality on the types of end of life tyres we process as well as on origins. So therefore I don’t expect any adverse impact on account of raw material to our gross margins. Okay, thanks.
Manish
Thanks once again for taking the question.
Gaurav Sekhri
Thank you. Thank you.
operator
Thank you. We take the next question from the line of Kushal from Asian Broking. Please proceed.
Kushal
So sorry to repeat this question but. Just wanted to know these tires being imported South Africa. From South Africa.
Gaurav Sekhri
They are probably high quality tires like SUV or truck tires, right? Like, just wanted to know. We are importing, you know, various kinds of tires from various origins and South Africa is no different. We are bringing in tires which are passenger car radial as well as truck bus radial tires from South Africa. Thanks. Thank you.
operator
Thank you. We take the next question from the line of Ashwath Rajan from arian Capital Markets Ltd. Please proceed.
Ashwath Rajan
Yeah, hi. Thank you for the follow up. So I have two questions. Since now we’re already done with the CAPEX in South Africa, just wanted to understand the incremental CAPEX of ftcr. What would this be centered towards?
Gaurav Sekhri
So the incremental capex of 50, some of it will continue to go to just finish the existing works that are ongoing especially at the Varela and Maharashtra site. Regarding RCB Pyro, we expect to spend approximately 20 of crores in Saudi Arabia and at least another 5 crores I expect Capex will be incurred in South Africa in the near future.
Ashwath Rajan
Okay. And my second question is what kind of annual costs are we expecting on an year, on year basis? Because since now we are closer to source like we are closer to the source of raw materials. What I mean in South Africa, Middle East. So what kind of annual savings are we expecting?
Gaurav Sekhri
The savings come from come from overall scale and efficiency. There are various things at play. You know, South Africa, while we are closer to the origin and we can process there, there is higher cost of processing with labor and power being more expensive there. So it is very hard for us to tell you today specifically what savings will come from each such initiative. But certainly scale will give us greater efficiency both in logistic costs as well as efficiency in terms of spreading our fixed cost better.
Ashwath Rajan
Okay. And I just wanted to understand. Since our final product is pellet, does this pellet come from say from South Africa back to India or do we export it from South Africa to other markets?
Gaurav Sekhri
At the moment I will clarify. We are only doing semi processing of tires in South Africa. And the semi processed material is coming to India for recycling. So that is the current setup.
Ashwath Rajan
Got it. Okay. Thank you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press Star in one on your touchstone telephone. We take the next question from the line of Siddi Kr From Aditya Bizlamani. Please proceed.
Unidentified Participant
Hello. Am I audible?
Gaurav Sekhri
Yes, please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity. I want to ask, can you give us these guidance on the performance of TP Biltech? And what top line are you expecting from the team in FY27 and FY28?
Gaurav Sekhri
Hi, Gaurav here. I think your question is specific to TP Build Tech. Correct. TP Biltech. We expect moderate growth in this financial year in TP Biltech. As of now we are at revenue of 56 crores versus 61 crores last year. So we are a bit behind. We expect to finish the year at par or maybe slightly higher than previous year. We are expecting a good Q4 in regards to future. We have done some good work in this financial year in terms of laying the foundation for growth for the next two to three years. One of them being we now have a plant in eastern part of India, near Calcutta to make the concrete admixtures earlier.
Historically we only had two facilities, one in North India and one in West. So this initiative in east will certainly help with growth in the coming financial year. That is one. And second, we have hired a new team and set up a new line of construction systems products such as accelerators and grout repairs. We are now beginning to sample our product with customers, get some approvals and accreditations. We speak. We are very confident that we will see impact of that also in the coming financial year.
Unidentified Participant
Yeah, thank you so much. That was really helpful. And one, just one. Another question is that how is the order pipeline looking for in Q4, FY26 and FY27? Just speak a little bit more clearly. I’m having a little challenge understanding all the words that you’re saying. I’m asking that how is the order pipeline looking for Q4, FY26 and FY27?
Gaurav Sekhri
Sure. Okay. So that is looking good. I think one of the reasons why we also had lower margins in current financial year is because, you know, our own product mix basis, because of the pipeline that we had changed, we sold less of the higher grade and more of the lower grade materials. But looking at the pipeline, it’s looking good. We have a good set of customers, lots of them with whom we have now worked for almost a decade and they further have good projects. So as of now it is looking good.
Unidentified Participant
Yeah. Okay. Thank you sir. And one last question is that you mentioned that you have kept aside 5 crores for R and D. So are you looking for any new verticals other than double recycling?
Gaurav Sekhri
Ma’, am, we are. You know, we see opportunity for finding adjacencies within our existing business within the scope of recycling tires and new applications of rubber, as well as the polymer composites business and the master batch business. So this money is earmarked for finding new applications and adjacencies to our existing business. We are not at the moment considering, you know, getting into, you know, construction, demolition waste or battery recycling or something which is completely unconnected.
Unidentified Participant
Yeah. Okay, that was very helpful. Thank you so much.
Gaurav Sekhri
Thank you.
operator
Thank you. Before we proceed with the next question, participants, in order to ensure that the management is able to address questions from all the participants. Please limit your questions to two per participant. We take the next question from the line of Vatsal Shah from Nightstone Capital Management. Please proceed.
Unidentified Participant
Hi, thanks for taking my question. So I wanted to know the current cash balance available with the company and the debt repayment plans for the next two years. So our current cash balance is approximately 5 crores. And what’s the second part of your question? The debt repayment plan for the next two years. How much of our debt repayment? Maybe a big. You can help me with that. Approximately 10 crores a year. And the second question would be that. Like we are looking to extend our. Capacity to 2,35,000 tons. So that includes everything, right?
Gaurav Sekhri
The RCB plant, the PCMB plant and. Every vertical we are going into. Yeah, I mean everything begins with tire recycling, you know, the capacity of recycling. Then those are all downstream, you know, processing options. Either one can go into, you know, making reclaimed rubber, you know, micronized rubber, etc. Or one can go into pyrolysis and RCB. So we are just adding more and more optionality to our business. But everything begins with recycling of tires. So that is where we expect in the near future our capacities to be around, you know, 235, 250,000 tonnes. Got it. And the like the EBITDA margins are similar across verticals.
Right. Like there must be some difference but like it is comparable. Around 18% or so, around 16%. As of now we desire to go to 18% and of course work is being done in that direction.
Unidentified Participant
Okay, that’s it. From my side.
Gaurav Sekhri
Thank you. Thank you.
operator
Thank you. We take the next question from the line of Raghav Bansal from PDNL Capital. Please proceed.
Raghav Bansal
Good afternoon sir. My first question is how does the reduction in GST on tires in India affect the tire recycling ecosystem? It has no major impact on us. Frankly. Maybe some demand will increase and we. Are benefit only because due to low. VST there will be more demand and then more demand for their raw material and more demand for our finished product.
Gaurav Sekhri
Right. So it will not affect the replacement or it will not bring a new trend of too much replacement in the existing tires. Even if that happens, that only supports our business. But I don’t expect it to move the needle in any substantial way. Okay, Fair. And second question, how has the recent infrastructure policies in the budget affected the ecosystem for us? If in any way, I think governments focus and spend on infrastructure has remained there for the last five years. Every year in the budget Also they announce something new, some megaprojects this year, there are seven new freight corridors that have been announced and expressed, etc.
So all of that supports the need for infrastructure in the country and we are aligned with that. There is no specific mandatory requirement for a minimum amount of tires, percentage of rubber to be used within roads as.
Raghav Bansal
A policy, is it.
Gaurav Sekhri
The old mandate and guidelines remain in force, which is for high traffic roads. Government continues to recommend use of modified bitumen. Thank you. Thank you.
operator
Thank you. We take the next question from the line of Manish, an individual investor. Please proceed.
Manish
Hi sir, I’m audible.
Gaurav Sekhri
Yes, Manish, please proceed.
Manish
Hi, I have two queries. My first query is if I check your Investor presentation, the Q3 FY26 EBITDA margin has decreased from the last quarter. Last quarter we were at 18.5% and this quarter we are 16.3%. So what’s the reason behind it? And the same goes with Pat. Pat is reduced from 10.6 to 9.6.
Gaurav Sekhri
On the EBITDA. It is largely because of EPR. We had some EPR credits which we accounted for in the previous quarter in one go because there was some lag in the reflection of those credits at the EPR portal, the government. So our policy is only when the EPR credits start showing on the portal, we start accounting for them in our books. So that caused a little showing higher EBITDA margin than what we actually achieved in previous quarter. And this quarter it is Only accounted for 1/4, which is this quarter of Q3.
Manish
Okay, thanks for clarification. And I have two more queries if I can ask. I don’t know the first queries. You know, we can see the auto sales increasing a lot right from the last quarter. So if we have more auto sales, we might have more tires. So will the raw material price be reduced? Will it reduce a bit going forward? No, I, I would not draw that conclusion. You said higher auto sales, right? Yes, higher auto sensory. We have two wheelers, four wheelers, passengers, everything.
Gaurav Sekhri
So that is good for us to More vehicles on the road means more tires are being put to use, which means more. No, I, I, I wouldn’t jump to that conclusion also, but I, what I would say that we can certainly conclude that there is more business for everyone to do.
Manish
Okay, okay. Okay.
Subodh Kumar Sharma
That’s basically. Yeah, Manish here. So if you see, you know, couple of quarters back, the tire industry was bleeding and with the reduction in GST and some of these measures, you know, the tire industry has started improving on their sales Size.
Manish
Yes sir.
Subodh Kumar Sharma
So that’s the reason even you know the all tire industry sales are improving every quarter now.
Manish
Yes. Yes. Agree. Agree. Agree. Agree. And my third query is. You know sorry to be specific. You know when we started the year we guided for 20% revenue. Last quarter we guided for 12 to 15% not 8%. And this quarter we’re guiding for 8%. So don’t you think we should have a conservative guidance not to be over guided. Not to over guide something.
Gaurav Sekhri
No.
Subodh Kumar Sharma
I think there is some gap, Manish. In the quarter two earning call itself we gave the visibility of you know 7 to 8% growth over the previous year revenue.
Manish
But I have the recording call recording and the transit means. What you transcripted me shows that 12 to 15%.
Gaurav Sekhri
That’s the reason I ask Manish Gaurav here we give a guidance to the best of our ability to what is realistic. We have been giving that for the last many years. In most cases we are within 5% of our guidance. This year we are within 7, 8% of our guidance. So you know it is a guidance at the end of the day. And I think when you also listen to that and then quarter on quarter we are also updating you. I think that is where you know you need to consider all the facts and then draw your own conclusions.
Manish
I agree sir. I just wanted that should we be more conservative in giving the guidance just to be on the super.
Subodh Kumar Sharma
I believe. I believe the way we are giving our guidance is. Is accurate and to the best of our ability. I don’t see us making any change to that.
Manish
No problem sir. All the best, sir. All the best. And thank you for taking my query, sir.
operator
Thank you. We take the next question from the line of Kamal Jaiswani. From you first capital. Please proceed.
Kamal Jeswani
Thank you. Couple of questions. Firstly, with this periodical oil plant starting what is the can we expect some margin improvement once this starts?
Gaurav Sekhri
See we expect the pyrolysis RCB business margin profile to be very similar to the material cycling business that we do. So it will be similar. I think overall efficiencies for the company will come because of skill, scale and other logistic benefits etc.
Kamal Jeswani
Okay. And TP build tech, I think we are holding some 49 stick. 49 point some correct sir. We are expecting it to cross 50, 51% to make it a subsidiary once.
Gaurav Sekhri
We haven’t. You know we are not considering that as of now I think will be the most accurate way to answer your question.
Kamal Jeswani
Okay. And I think I missed the answer you must have mentioned. I Guess we are currently at 15% capacity utilization. And how much are we expecting scale up in the capacity utilization this this year and next year?
Gaurav Sekhri
I think your question is to the TP Biltex new plant, right?
Kamal Jeswani
Yes, yes, correct.
Gaurav Sekhri
I think that we are already factoring in to go to about 35, 40% utilization in about six months. And then of course we continue to make efforts to make it even better. But in the near future that is where I’m seeing the utilization.
Kamal Jeswani
Okay, thank you so much.
operator
Thank you. We take the next question from the line of Karan Gupta from acmil. Please proceed.
Unidentified Participant
Can you share the segment wise margins in product terms? We don’t share this data current segment wise margin. Okay, okay, okay. But if you can share comparatively segment wise which segment is higher or which is lower? Something like that.
Gaurav Sekhri
The margin profile of infra and industrial is comparable and the margins in the consumer segment are slightly your.
Unidentified Participant
Okay, okay and okay fine. Thank you. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for the day and would now like to hand the conference over to the management for closing comments. Over to you sir.
Gaurav Sekhri
Thank you everyone for organizing the call today to the organizers and of course my gratitude to all the people who participated and have shown interest in our company. I wish you a very good evening and a happy healthy year ahead. Thank you.
operator
Thank you on behalf of GoIndia Advisors LLP. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.