Tinna Rubber and Infrastructure Limited (BSE: 530475) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Gaurav Sekhri — Joint Managing Director
Subodh Kumar Sharma — Whole Time Director
Analysts:
Unidentified Participant
Akshay Shah — Analyst
Deep Mehta — Analyst
Mihir Vora — Analyst
Kushal Kasliwal — Analyst
Dipesh Sancheti — Analyst
Maitri Shah — Analyst
Chidananda Mohanty — Analyst
Suresh Pal — Analyst
Kedar Kailaje — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Tina Rubber and Infrastructure Limited Q1 FY26 earnings conference call hosted by GoIndia Advisors LLP. 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 this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sana Kapoor from Go India Advisors LLP. Thank you. And over to you, ma’.
Am. Thank you. Arshik. Good afternoon everybody and welcome to Tenar Rubber and Infrastructure Limited earnings call to discuss the Q1FY26 results. We have on the call Mr. Gaurav Sekri, Joint Managing Director. Mr. Subodh Kumar Sharma, Director and 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 Sekri to take us through the company’s 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
Good afternoon Sana and thank you. Thank you for joining us today for the Q1 FY26 earnings call of Dina Rubber and Infrastructure Ltd. 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 report that Tina Rubber has demonstrated Improved performance in Q1 FY26 on a quarter on quarter basis despite facing challenges arising from the early onset of monsoon and prevailing global headwinds.
On quarter on quarter basis our EBITDA increased by 19% with a 344 basis point improvement. While Revenue and PAT remain stable. Coming to some strategic updates. We successfully completed our maiden QIP in July 2025 raising approximately 79 crore from marquee institutional investors including ICICI, Prudential Mutual Fund, GM Financial Mutual Fund and Bank of India Mutual Fund. Deployment of QIP funds has commenced from Q2FY26 and will be allocated approximately as follows. 23 crores towards debt reduction. 12 crores. I’m sorry. For solar power expansion and 22 crores for a new plant of recovered carbon black and 19 crores for general corporate purposes.
Tina marked a key milestone with its successful NSE listing in April 2025, complementing its BSE presence and reinforcing our commitment to greater visibility in Indian capital markets. Coming to our cost reduction initiatives, the reduction in debt will lead to annual interest saving of about 1.5 crore. We are expanding the existing renewable energy to more than three times from the current capacity of 1.26 megawatt to 4.52 megawatt. This will lead to total savings of 3 crores annually and approximately 50% of our power needs will be met through renewable sources including captive solar and some third party purchases.
Aligning with the Company’s ESG goals. Also, with increased optionality on using different types of tires as feedstock, we expect cost savings of 10 to 15% in Q1 FY26. We have incurred capital expenditure of approximately 13 crores and we are committed to our plan of approximately 100 crores of capex over two years. I am pleased to inform that we have monetized approximately 5.6 crores from non core assets which were at 28 crores at the beginning of the year and the company will continue to actively pursue monetization of the remaining non core assets. Providing a brief overview of projects the polymer composites business during the quarter and in the master batch business we have reached sales of 100 tons per month reflecting steady volume growth.
The product portfolio was expanded to include color additive, silicon and biodegradable master batches. Further strengthening our we are actively working on specialty master batches designed to improve technical performance and yield better margins. Aligning with our goal of sustained profitability, the Varley plant capacity utilization increased from 30% in Q1FY25 to 57% in Q1 of FY26, driving a significant year on year sales growth from approximately 6 crores to 27 crores. Turning to our international projects in Oman, the plant operated at 85% capacity utilization generating around 1 million in revenue and 35% of our output is now sold within the GCC region.
In Saudi Arabia we have received allotment of 20,000 square meters of land and we hope to commence building the facility soon and we are hoping for commissioning to happen. From Q4 of 2026. Tina has successfully infused capital into its joint venture BODLA Investments in South Africa where we have received consent to receive and export 24,000 tonnes of end of life tires which will be used as feedstock for Our plants in India as well as Oman. The phase one of operations have already commenced in Q1 of 26. In conclusion, I would like to emphasize that we are firmly on track to achieving our vision 28 expanding our presence from 6 to 10 locations targeting revenue CAGR of 25% to reach 1000 crores of revenue by FY28 with a targeted EBITDA of 18% plus and ROCE exceeding 30%.
With that I would like to hand over to Subodh for his insights and comments on operational and financial performance. Over to you Subodh.
Subodh Kumar Sharma — Whole Time Director
Thank you Gauravji. Am I audible? Moderator?
operator
Yes sir. Please go ahead.
Subodh Kumar Sharma — Whole Time Director
Thank you. So, coming to operational performance in Q1 FY26 tire fishing volumes declined due to slowdown in infrastructure and consumer segment. Regarding FY26 Q1 segmental performance, the industrial and steel segments delivered revenue growth while the infrastructure and consumer segment faced a temporary slowdown. Revenues from the industrial segment have grown by 15% on yoy basis despite global economic headwinds. Export performance in the industrial segment remained positive supported by stability in the rubber conveyor and molded goods industry. The steel segment recorded an 8% YoY revenue growth though overall growth was bit curved by declining steel prices driven by low cost steel scrap import from Russia and other countries.
The slowdown in infrastructure sector was driven by delayed fund releases from Ministry of Roads and early monsoon and supply disruption caused by the Israel Iran conflict which impacted vitamin exports from Iran, a key supplier to India. On a positive note, the bitumen emulsion business recorded approx. 40% year on year volume growth. We are confident of a strong rebound post monsoon driven by a solid and growing business pipeline. Consumer segment demand is expected to revive in the upcoming quarters following a seasonal shift influenced by thunder monsoon and short term market liquidity adjustments. Coming to consolidated financial performance for Q1, revenue stood flat at QoQ basis whereas it declined by 4% on YoY basis primarily due to lower epr contribution of INR 4 crores in Q1 compared to 10.5 crores in the corresponding quarter of our gross margins improved by approximately 344 basis point on quarter on quarter basis driven by lower raw material cost, operational efficiency and stronger sales realization.
Our EBITDA increased by 19% QoQ basis to rupees 21 crores and margin stood strong at 16% and improved by 237 basis points on quarter on quarter basis. Our PAT remained flat on quarter on quarter basis to Rs.12 crores and PAT margin remained robust at 9% at the console level Global Recycle LLC, our associate company operating from Oman and PT Biltek contributed INR 0.4 crores and INR 0.7 crores respectively to pack level. I am happy to share that our working capital cycle has improved from 42 days in FY25 to 38 days in Q1 FY26. Reflecting our unwavering focus on operational efficiency and financial discipline, Tina river is making strong progress towards its Vision 2028.
Driven by strategic capacity expansion, capital investment, global sourcing and business integration. Its diverse product portfolio and international focus and experienced leadership supported by committed stakeholders position the company for sustained long term growth. I would now like to open the floor for questions and answers. Thank you and over to you moderator.
Questions and Answers:
operator
Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Akshay Shah from Toro Wealth Managers LLP. Please go ahead, sir.
Akshay Shah
Hello sir. Thank you for the opportunity. I have three questions. Sir, is the issue of rates disruption sorted in Q1 FY26 or did you still hate to face impact of the same?
Gaurav Sekhri
Can you repeat? What disruption?
Akshay Shah
Red Sea disruption.
Gaurav Sekhri
I didn’t get the word. What kind of disruption.
Akshay Shah
Sorry, Red C. Hello? Red Sea disruption.
Gaurav Sekhri
Red Sea.
Akshay Shah
Yes. Yes.
Gaurav Sekhri
Okay. Yeah, thanks for the question. There is no. See, there is a certain amount of settlement that has happened in the way the trade is being conducted. There is some normalization, I would say. And you know, the whole logistics industry has kind of gotten used to it and settled around it. The freight rates are also stable. So that’s what I can tell you. They haven’t gone up.
Akshay Shah
Okay. So my second question is, is there any impact of Trump tariff policies on your company? And if yes, request you to please explain. And how do you plan to safeguard yourself?
Gaurav Sekhri
Sure. We actually have very little business with the US So to that extent we. We have. We don’t see any impact on us.
Akshay Shah
Okay. And sir, are UIP fund sufficient for your capacity expansion plan of solar hydrolysis and recovered carbon black band? Carbon black plant?
Gaurav Sekhri
Absolutely.
Akshay Shah
Okay. And sir, what are your plans on the debt curve? Do you have any threshold in the mind above which you won’t go in terms of total borrowing?
Gaurav Sekhri
We are currently very comfortable with our debt profile. We have Scope to take more. But we don’t see any immediate need to take any more funds in debt. We don’t foresee it.
Akshay Shah
Okay. Thank you so much sir for answering my question. I will come back.
operator
Thank you. Participants, if you wish to ask a question you may press star and one on your touchstone telephone. I repeat participants, if you wish to ask a question you may press star and one on your touch tone telephone. The next question is from the line of Mr. Deep Mehta from Bank of India Mutual fund. Please go ahead, sir.
Deep Mehta
Hi sir. Thank you for the opportunity. Couple of questions. First in Q1 if I exist, your margins with EPI credits we have seen sharp improvement in overall margins. So what led to improvement in margins and is this higher margin sustainable going ahead?
Gaurav Sekhri
Hi, Deep Gaurav here. Thank you for the question. Yes, your analysis is correct. The improvement in our overall margins has happened right from the gross margin level where we have seen 300bps plus improvement. And we believe at this stage it seems sustainable. I don’t see any reason for that to change.
Deep Mehta
And what led to this improvement in margins? If you can share.
Gaurav Sekhri
Well, it was a combination of things. Primarily. We brought down our cost of raw materials by increasing the optionality of the kind of tyres we run into our facilities. That helped us Also higher sales of crumb rubber modifiers benefited us as well in margin improvement.
Deep Mehta
Very clear, sir. And my second question is regarding our PCMB business. As you said in your presentation that capacity utilization has improved to 24%. If you can give us some qualitative color about this business, how do you see the capacity utilization going ahead? How many clients have we on onboarded? Is the product profile at par with clients expectation both in terms of quality as well as pricing? If you can talk about that, that can be very helpful.
Gaurav Sekhri
Sure. No. Excellent question. Again on the PCMB business. While we have now reached a steady state of about 100 tons of sale. But our ambition is far larger than that. We are at early stages of trials, bulk trials, initial supplies with various customers across different sectors. And we are confident that in this financial year we are expecting approximately 30 to 35 crores of contribution in our overall top line from the PCMB business. And once that is achieved, that will lay the foundation to further expand that vertical. So that is where we are at. So we are keeping ourselves very focused at this point of time to get as many approvals in marquee clients and industries to enable us to get to our target for this financial year.
Deep Mehta
Great, sir. And my last question is just a bookkeeping question. If you can help us with the number of EPR credits which we are holding as on Q1 ending, if that can be very helpful.
Gaurav Sekhri
We will get back to you on that. We’ll get the data out and we’ll get back to you.
Deep Mehta
No issues. That’s all from my side. Thank you and good luck.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch tone telephone. I repeat participants, if you wish to ask a question, you may press star and one on your touchstone telephone. The next question is from the line of Mr. Mihir Vora from Aquarius Capital. Please go ahead, sir.
Mihir Vora
Yeah, hi. So basically sir, I just one clarification. In your opening remarks you mentioned that you know, there was a 10 to 15% cost reduction by using the different kind of tires. So maybe you can just extrapolate it a bit. That is the understanding, correct, that previously it used to be tbr, now getting into PCR also or you have changed something into your machinery in that sense.
Gaurav Sekhri
Thank you for asking this clarification. We were largely a TBR recycling business and of course after that PCRs were added as well. We have now enabled ourselves to also recycle off road tires. Tires like agriculture tires and mining tires. So combination of all of these three is what is helping us to get a reduction in our drill cost.
Mihir Vora
And sir, the off road tires basically written to the existing machinery only or we have added some machineries to that.
Gaurav Sekhri
We’Ve added some equipment, we’ve added some eco. Because these off road tires can be very large. You know, an individual tire can be half a ton. So it needs different treatment.
Mihir Vora
Okay. And so my second question was on this PCMB business. So just wanted some highlight on the nature of your business. Whether this will be a order book. Driven business or is it some kind, you know, spontaneous orders? How does it work?
Gaurav Sekhri
No, this is very much a order book kind of business. The large, you know, just like any other business, this has elements also of some sales into the more spontaneous sector, as you called it. But to a large extent it follows a very similar process of getting approvals of your product from large auto component companies, other organized players, which is a process. But once that is done and achieved, then one develops a fairly high visibility of sales.
Mihir Vora
Okay. And so in terms of this year maybe, you know, the approval process for the OEMs also would be sort of elongated. So this year would, would it be correct to assume that this would be more of a spontaneous business than to an order book or then it Starts building up, say going towards the next year, start getting few orders into this. How will that trajectory go for the PCMB business?
Gaurav Sekhri
You’re right, you know, while we are at different stages of approval with OEMs, etc. It is the more sort of the resale market, replenishable market where which we are trying to cater at this point of time while we get approvals from other clients. So you’re right, your assumption is correct.
Mihir Vora
And sir, finally on this margin target which we have set for ourselves, that is 18% by FY28. So first thing here is that because you’re getting into the newer segments like PCMB and Pyrolysis also which will still be at the nascent state. So what are we seeing there that we are, you know, thinking about achieving that 18%. So how this margin trajectory will play? Because you know, in terms of newer segment, we face some competition also. So how are you, you know, planning to manage that?
Gaurav Sekhri
We’ve done our, you know, forecast and that is why we feel confident to give that as a, as a guidance at this point we’ve achieved 15.5% EBITDA margin in Q1. And at this point of time, whether it is the PCMB business or the setting up of the regenerated carbon back business, these are new initiatives where a lot of costs are incurred front end and the result comes a few months or quarters down the road. Similarly, in our international operations, you know, we are in investment stage in stabilizing South Africa, Saudi Arabia, et cetera. So these, the benefits of this work will be seen over the next few quarters but the expenses are being incurred today.
So as they stabilize that will enable our EBITDA to go up and of course operational efficiencies will kick in as well.
Mihir Vora
Sure sir, thank you. That’s all from my side.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touchtone telephone. The next question is from the line of Mr. Kushal Kasliwal from Invade Research. Please go ahead sir.
Kushal Kasliwal
Yeah, hello sir. So just wanted to understand your realizations in paralysis and recovered black carbon. You are doing this capex and entering into this, this new business. So can you indicate possible top line, bottom line estimate, margin estimates and realization there.
Gaurav Sekhri
So the regenerated carbon black business is, you know, at the moment we are in the process of placing orders for the plant and the equipment, etc. A lot of the civil work and the building work is more or less complete. So that is the stage we are at in Terms of the margin profile of this business we expect it to operate at very similar margins as our existing tire recycling business. Similar kind of margin profile is there. But you know we will be able to tell you more surely when we begin and start which is expected to happen, you know end of Q4 maybe early Q1 is when we will start seeing this facility becoming operational.
Kushal Kasliwal
Okay, so just for my information, what, what kind of asset terms can be expected here?
Gaurav Sekhri
It’s approximately 3x again very similar to our existing business.
Kushal Kasliwal
Understood, got it. Fair enough sir. On the industrial business side we obviously saw a significant decline. Sorry, infrastructure segment. Any, any particular. I mean obviously you have highlighted some reasons but are these issues out now? Were they temporary? How are you experiencing two Q? I mean what has been your experience of July? Maybe if you can just you know spell that out.
Subodh Kumar Sharma
Yeah. Hi sir, this is Subodh here. So on the, on this side like. You know Q1, you know it’s very. Unlikely like you know the monsoon stock started quite early this time and we are also keeping an eye because the business pipeline is strong and we are anticipating the business will come back on the track. So Q2 at this point of time it’s very difficult. We expect it to be finished off by early September so the things should come back on the track. That’s what we feel on the infrastructure segment side.
Kushal Kasliwal
Okay, so I think September is when you think things will become normal till September. So Q2 will also be weak. Yeah, understood. And I mean same question on the consumer side. I think we have again there is a temporary decline of 10%. Can you also tell about Q2 there?
Subodh Kumar Sharma
Consumer segment Q2 and I think this already started picking up because certain application wherein we were struggling to get approval in the Q1 and that finally are in place. So that already started picking up from Q2. So you will see some growth in the consumer segment from the Q2 itself. But the road business is again it’s just a break of this monsoon period. This will further kick in back and we expect it to come back on the track from by end of Q2 we believe.
Kushal Kasliwal
Understood, thanks. So my last question on the capacity utilization of our Valare plant, Varale plant. So this is now around 57%. So what kind of top line can we expect overall in FY26 from this plant and you know overall capacity utilization for FY26.
Subodh Kumar Sharma
See Varley when we set up, you know if you see it is growing and consistently since last two quarter it is operating at around 55, 60% in between capacity Utilization we have always maintained once it reaches at optimum so it can generate close to 100220 crores kind of top line without adding the new initiatives. What we have taken in the current financial year that will further be added once that come into the operation.
Kushal Kasliwal
On an annualized basis. What can be ideal capacity utilization number?
Subodh Kumar Sharma
See this year we expect it to be around 80 to 90 crores kind of top line from Varnay alone with the existing kind of product portfolio. But going forward, once we see stabilizing our RCP and pyro which we are not taking into the account that will start contributing from the next financial year. That’s and it is completely as of now we cannot predict anything that we are targeting by Q1 we wanted to start but if everything is fall in line, so that will further add something to the Varley overall revenue.
Kushal Kasliwal
Okay, so I’m assuming 8590 Grod at the same 60% kind of capacity utilization, right?
Subodh Kumar Sharma
Yes sir. Yes sir.
Kushal Kasliwal
Okay, got it. Thank you.
Subodh Kumar Sharma
Thanks.
operator
Thank you. A reminder for the participants, if you wish to ask a question you may press star and one on your touchtone telephone. The next question is from the line of Mr. Kedar from NAN Partners. Please go ahead sir.
Unidentified Participant
Yeah, so thank you for the opportunity. I’ve just started recently started tracking your company. So forgive me if my questions are very basic. So firstly on your sourcing part, so it’s mentioned that you in a previous concourse that you import 70% and 30% is domestic. So on the import side is it mainly from the tire manufacturers or is it from the dealers?
Gaurav Sekhri
Hi, this is Gaurav Sekri. See, each country is a little bit different. Some countries have the collection of end of life tires is done through scrap traders etc. So we work with such entities. In some countries there are producer responsible organizations which are organizations for formed by tire manufacturing companies which ensure efficient collection and it is their mandate to ensure environment friendly recycling. So we work with those as well in countries where they are set up. So these are sort of the ways we operate.
Unidentified Participant
Okay, understood. And on the import side like is it skewed towards imports because of lack of availability in the domestic market or is there any other reason? And what is the difference between imported ELT and domestic ELT?
Gaurav Sekhri
See, in terms of quality etc. There is very little difference in terms of landed cost basis. Because three of our plants are located at ports. We find it more economical to work with imported end of life tires in most instances. So that is why the 70:30 ratio as well as the collection, the volume that we need is easier for us to aggregate from imports. Of course we like to use as many domestic tires as possible. But here there is no organized collection. Yet it is happening and certainly implementation of EPR is enabling that we, we see that with progress of time our dependence on imports will reduce.
Unidentified Participant
Okay, okay, understood. So like over the next maybe two, three years you will see domestic procurement increasing because of the CPR policy. Say how much it will be.
Gaurav Sekhri
I, I think, you know, I, I, and I’m just guessing here over Next, maybe after two, three years it could become, you know, 60, 40, possibly in favor of domestic. That is possible. So you know, we will see.
Unidentified Participant
Okay, okay, understood. And secondly, on like I had a hypothetical question. So if companies like tire companies like say mrf, if they decide to build up their own recycling operations since they have the scale and they would have the end of life tires. So can there not be a competition for you in the future or what is your view on that?
Gaurav Sekhri
We have not seen any tire manufacturing company globally and there are many large international companies which are even larger than MRF getting into tire recycling. It is not really their core activity. So for that reason I don’t see that happening in India either. And I believe a big challenge for tire companies is that their own use of recycled rubber is very limited. They will use maybe 10% or 15% in their overall compound. So for them just to recycle tires so they can use 10, 15% and the balance steel, they have to sell fiber, they’ll have to sell rubber also they’ll have to sell to other industries.
It is just not their core area of competence. So I think that is why we’ve not seen any tire company anywhere in the world getting into recycling.
Unidentified Participant
Okay. Okay, got it. Yeah, thanks for the, thanks for your views. Then secondly, on your margins.
operator
I’m sorry to interrupt. Mr. Keda, could you come back again in the queue please?
Unidentified Participant
Yeah, sure.
operator
Thank you so much sir. Thank you. The next question is from the line of Mr. Dipesh Sancheti from Manya Finance. Please go ahead sir. Mr. Dipesh?
Dipesh Sancheti
Yeah. Can you hear me?
operator
Yes sir. Please go ahead.
Dipesh Sancheti
Okay. Hi, I’ve joined the compiler a little. Late, so if there is any repetition of questions please, you can skip that. What is the trend of the scrap price in Q1 FY26? And how do you see this happening? I mean, how do you see the trend in Q2?
Gaurav Sekhri
The end of life tire landed cost to us. We have created some efficiency in reducing our cost by increasing Operations optionality of different kind of tires we use but at the moment we are seeing a bit of a downward correction. So that is where we are at right now.
Dipesh Sancheti
Okay so and you have mentioned in your PPT that you are planning to.
Gaurav Sekhri
Setting up the pyrolysis and recovered carbon black plant.
Dipesh Sancheti
Can you please let me know the. Location where you are planning to set up this plant and the payback period for this project and by when can we expect that to commission?
Gaurav Sekhri
The regenerated carbon plant is being set up inside our existing facilities at Varela where we already have a passenger car radial recycling plant in the same complex. We expect to begin sales possibly from end of the Q4 of this financial year and in terms of margins achievable we expect to operate at around 15 to 16% EBITDA margin very similar to our existing material recycling facilities.
Dipesh Sancheti
Okay, and how much top line do. You expect from this?
Subodh Kumar Sharma
We expect approximately in full capacity utilization probably around 70 odd crores a year.
Dipesh Sancheti
Okay. And the PCMB business has a capacity. Utilization of 25% roughly by how much. Do you expect the same to increase by FY26 end of FY26 and on an average what approx what Approximately the. Utilization FY26 and going higher.
Gaurav Sekhri
We expect to get to about 60% utilization by Q3 from Q3 onwards in the PCMB business and we expect its top line contribution to be approximately 30 crores which was almost negligible in FY25.
Dipesh Sancheti
Okay, and do you expect that this will actually contribute about 5% of your top line going ahead?
Gaurav Sekhri
Very, very much so possibly larger because this is a very small pilot plant that we’ve set up. If our business model is validated we will plan a ramp up very quickly in this. So the contribution to our overall top line could be 5, 8, 10%. That’s very hard to predict today.
Dipesh Sancheti
Okay, and how fast can you ramp this up? I mean is if this thing turns. Out to be successful and how much. Capex will you require for that?
Gaurav Sekhri
Again it’s very early stages, really speculation but in terms of ramp up the period is under six months. I mean the learning that we are getting now I believe that you know from decision making to getting something started will be about a six month process.
Dipesh Sancheti
Right, right. And where do you see the ROE expectations? I mean we’re having a very good roe. But right now where do you see roe? What will be a decent ROE expectation. We should keep right now? Last year you were at around 32% ROE.
Gaurav Sekhri
It’s a fairly healthy ROE. We are happy with that and we expect to continue to maintain it is is what we can tell you today.
Dipesh Sancheti
All the very best guys.
Dipesh Sancheti
Thank you.
Gaurav Sekhri
Thank you.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touchtone telephone. The next question is from the line of Ms. Maitricha from Sapphire Capital. Please go ahead, ma’.
Maitri Shah
Am.
operator
Yes ma’. Am. Yes, please go ahead.
Maitri Shah
Yeah, yeah. Most of my questions have been answered. Just one question on the revenue market for this year. So are we still on the trajectory of going 25%? Yes, very much so.
Gaurav Sekhri
You know Q1 and Q2 in top. Line is always a little weak for us because you know our infrastructure vertical usually is a bit slow in these quarters. But we are maintaining our guidance of 600 crores plus for this financial year.
Maitri Shah
And for the margins are we targeting around 15 to 16% or we could go a bit higher for that.
Maitri Shah
You know again we had, we had indicated that we are working towards 15.5% EBITDA margin which we have achieved in Q4 I expect for us to maintain this in this financial year.
operator
Okay, thank you. Thank you ma’. Am. The next question is from the line of Devi Agarwal from FECOM family office. Please go ahead.
Unidentified Participant
Yeah, hi sir, thanks for taking my question. So sir, I just wanted to know about the capacity for the RCB and paralysis plant.
Subodh Kumar Sharma
Yeah, hi sir, this is Sumod here. So we are you know, putting up the capacity of 100tpd of feed. For. The RCB and pyrolysis. So you know 100 tpd of feed means it can generate around 40 tons of oil and Prof. 35 to 38% is the carbon back.
Unidentified Participant
So that was helpful. And can you break me? Because the CAPEX part of it, what would be the capex for parallelism in RCB3?
Subodh Kumar Sharma
You know, out of this, you know. Like we mentioned we have successfully, you. Know, closed the QIP. So out of QIP we have allocated around 23 crores from this project. So that is starting being dispersed and. The project is very much online and. We expect it to be started by end of or mid of Q4, FY26 I think.
Unidentified Participant
Sir, I just wanted to know the bifurcation between the capex of RCV and Cairo.
Gaurav Sekhri
This is a turnkey project basis we are working on. So we have taken everything combined together and we have allocated the budget accordingly.
Unidentified Participant
And in terms of competition. So I mean what should be like one of the listed players also entering into the pyrolysis and RCB segment. So what According to you would be the competition and what is the total total addressable market in India and globally if you want to export as well.
Gaurav Sekhri
Hi, this is Gaurav Setri. In terms of competition, I mean there is. There is, you know, enough competition in everything. Even in our material recycling business there are so many more plants. So you know all the businesses have fairly high degree of competition already. But the differentiator is in how one creates efficiencies by scale. By having diversity of raw material. By having, you know, ability to use some of the end products in house, etc. So those are our key levers and the differentiators, how our model is differentiated from others.
Unidentified Participant
Right, sir. And in terms of the total capacities that you expect to be sold in India and abroad. I mean what’s the total addressable market for us in terms of RCB and Tyrolysis?
Gaurav Sekhri
The market for RCB is changing very dramatically. So far the use of RCB has been low because of, you know, the quality of RCB itself has not been up to scratch with the new technologies that are now available. And that is why we also waited all these years and only now are setting up a plant. Because now the technology is scalable, it is environment friendly. And the quality of product that it has the ability to make. The inclusion rates are very high even in high performance products like tires and other compounds. So that is what has affected us.
And we are in that way, you know, even though we are late entrance. I think in the RCB business we are probably better off because we have access to better technology.
Unidentified Participant
Any particular number that you want to put in in terms of plants or in terms of the percentage penetration in tires?
Gaurav Sekhri
No, at this point it will be speculation. We wouldn’t want to get into that. Sure.
Unidentified Participant
And lastly sir, I just wanted to know about the epr income of 4.1 crore that we have recognized in this quarter. So this is mainly from MRP and Reclaim rubber or this is from Drum rubber as well.
Gaurav Sekhri
It is from, you know, combination of products. The EPR credit cards are based on the product that we make. All the products we make are all eligible for EPR credits. Some months some product is higher and that variance happens. But all the products we make generate EPR credits for us.
Unidentified Participant
Thanks and all the best.
Gaurav Sekhri
Thank you.
operator
Thank you. Participants, if you wish to ask a question you may press star and one on your touchtone telephone. The next question is from the line of Mr. Chidananda Mohanty from Green Portfolio Portfolio. Please go ahead.
Chidananda Mohanty
Hello sir. I’m audible.
operator
Yes, yes, yes. Please Go.
Chidananda Mohanty
So the first question from my end. So let me tell you the paragraph. Then you can tell me that if I’m doing the right we processing 100 different tons of EL. That means you will get 75 metric ton of rubber and 25 metrics on of still. Am I following? Am I going right?
operator
Your voice is very mud San Moderator. Can you please just check the audio. On the side of Mr. Monty? Yes sir. Mr. Monty, could you come again Now?
Chidananda Mohanty
Now? Yeah. Now I am clear. Am I audible?
operator
Yes sir. Yes, please go ahead.
Chidananda Mohanty
Okay. Okay. So let me. So let me tell you one thing that I am going to recite your paragraph. So on the basis of that you please tell me if I am on the right track or not. So if we are processing 100 metric ton of end of life tires, that means we are getting 75 metric ton of rubber and 25 metric ton of steel. If I am following it.
Gaurav Sekhri
Yes, yes, you are correct.
Chidananda Mohanty
Right sir. Now we have 75 metric ton of rubber and it can be processed further in four different subcategories. Declaimed rubber for tire industry, rubber for consumer products, rubber for bitumen industry and rubber for pyrolysis. So once we consider the pyrolysis plant is life in which of this segment most of the rubber process will be going into and what kind of margin we can expect from that subcategory?
Gaurav Sekhri
Mr. Mohanji, we have created optionality for use whichever area gives us the best margins. You are absolutely right. Everything starts with a tire and from tire you get rubber. Now that rubber I would very, I would, you know be happier making most of that rubber into MRP because that is a higher value product. Very few people have the technology and gives the best margins. But that is not possible because its demand is also limited. So you also use your rubber for reclaim, you use your rubber for crumb, rubber modifier for roads. And now we will also use it for putting it through the pyrolysis process and eventually making regenerated carbon back.
But it is economic at that point of time which will drive focus for us.
Chidananda Mohanty
Right sir. So the next question from my side is that by the we expect by the end of April 25, so not April, but the end of calendar year 25. The government regulation about 100 ERP would be live. So what kind of top line percentage or what kind of amount from here to you can assume or you can see after the 100% contribution is life from government. Government side.
Gaurav Sekhri
The government has set a range, a minimum support price of sorts for the epr. Credits and a and a and a maximum price. At the moment EPR credits are trading at the minimum support price. Now if we demand exceeds supply then the price will go up and government has allowed for that. But that is a market driven, you know, outcome and we don’t want to speculate and we cannot speculate on that today.
Chidananda Mohanty
So can you give the minimum and maximum Support price for ERP?
Gaurav Sekhri
Minimum support price is approximately 2,500 rupees per unit and the maximum price is approximately 8, 8,400 approximately per unit.
Chidananda Mohanty
Absolutely. Sir, the last question from my side that in previous concurrent you mentioned that the steel aggressive segment can see strong demand from different segment. But in this presentation you rightly mentioned that due to low demand in segments like automobile is the realization in steel abrasive has been low. Can you draw some correlation between both of them? That is one side it is defense industry and other it’s around automobile.
Gaurav Sekhri
Yes sir. It has very high opportunity from different sector Because a lot of defense equipment etc steel based with steel surface preparation our steel abrasives are used. But the reality at this point of time is because of the slowdown of our core business which is catering to the steel industry auto industry our sales have also been subdued in the steel abrasive business. So. And that is what we have presented.
Chidananda Mohanty
I will join back the floor. Thank you sir.
Gaurav Sekhri
Thank you.
operator
Thank you. The next question is from the line of Mr. Suresh Pal from KRSP Capital Ltd. Please go ahead sir.
Suresh Pal
Yeah. Thanks for the opportunity. Sir. In last few quarters there was pressure on our margins due to several reasons like freight cost has went up due to rate issue. Then we were facing raw material cost price. So I would like to know a qualitative review of yours. How is the situation right now in terms of those headwinds that were causing margin pressure? That is my first question.
Gaurav Sekhri
Hi, we had stated earlier that you know we have seen almost 300 basis points improvement 344 basis points improvement in our gross margin. And that has large been because of the correction in raw material prices. Also our buying efficiency by increasing different options for our company. So we have achieved better cost margins. As a result our EBITDA margins on an isolated basis without EPR credit has also improved.
Suresh Pal
Sir, that is your credit that you have got better opportunities for purchasing raw material. But your earlier purest. How is that situation? I. What I want to know is you are purchasing the end of the end of life t from somewhere some. Some. Some places has those prices come down or it is because you have proactively taken action. That’s why the margin has improved. Gross margin.
Suresh Pal
Okay. Both and sir, my next question is. I. To previous participants you have given FY26 revenue guidance. Can you please repeat that guidance?
Subodh Kumar Sharma
Sir, we are. Our revenue guidance for FY26 is 600 crores plus while maintaining our EBITDA margins at 15% plus.
Suresh Pal
Okay, so then can you please give a segmental revenue breakup for quarter four of FY25?
Subodh Kumar Sharma
You want segmental breakup of Q4 of.
Suresh Pal
Yeah, yeah, Q4.
Subodh Kumar Sharma
You can send us a mail sir and we can reply to you by email.
Suresh Pal
Okay fine. Thanks. Thank you sir. That’s all from my sister.
Gaurav Sekhri
Thank you.
operator
Thank you. The next question is from the line of Mr. Pratham Rawal from Master S Chetan Private Limited. Please go ahead sir.
Unidentified Participant
Hello. Am I audible?
operator
Yes sir. Please go ahead.
Unidentified Participant
Yes. So most of the questions have been answered. My question, just one question is that do you see any visible shift by the tire manufacturers on using using recycled rubber for their manufacturing process as there were safety concerns related to it that manufacturers are saying that the recyclable are not safe for the use for manufacturing. So what is any visible shift you are seeing?
Gaurav Sekhri
The tire industry is, you know, with their sustainability drive they are you know very actively pursuing and you know trying to increase their dosages in their system. In fact if you see the many of the annual reports from these tire companies their ambition is by 2000 they want to use at least 10% of recycled rubber material in their system which as of today is close to 3 to 5% only.
Suresh Pal
Okay, that answers my question.
Gaurav Sekhri
You know, higher is always, you know, safety concerns and other concerns are involved. So this is a process. I mean nothing is going to change immediately but it a process and they are, you know focusing to increase the usage of recycled double material, sustainable raw material like RCB, regenerated steel, etc. So overall bucket, they are improving and going forward we see there’s a lot of potential to supply the recycled rubber material to these companies.
Unidentified Participant
Okay sir, thank you.
operator
Thank you. The next question is from the line of Mr. Kedar from NAN Partners. Please go ahead sir.
Kedar Kailaje
Yeah, thanks again for the opportunity. So my question was on margins. So I compared to you, one of your peers, GRP limited. So their margins are much lower and you know they are a lot more fluctuating compared to Tina. We wanted to understand like what is the reason for that? Is it some process or technology or any sourcing advantages? So can you throw some light on that?
Gaurav Sekhri
We won’t comment on our Competition, you know, I think that is. I request you to please do your own analysis. We can only comment on our business and I think in our earlier round together I answered you most of your questions. If you have anything more specific on our, then you are welcome to ask. Please.
Kedar Kailaje
Okay, so on your margin fluctuation, so what needs your margin higher or lower? Is it the scrap prices or rubber prices or is it energy cost? Like what is the major factor in your margin movement?
Gaurav Sekhri
Major movement? Margin movement for us is on account of raw material cost. Sometimes, you know, because freight is a component in it and it has a few other variables at play as well. As far as manufacturing costs are concerned, it’s a fairly stable and predictable, you know, cost structure for us.
Kedar Kailaje
Okay, so correlation to rubber prices would be lesser as compared to ELT prices.
Gaurav Sekhri
No, we are not really linked to the prices of natural rubber if that is what you are implying. For end of life tires and the price of it and the cost of bringing it to our factories, that is not connected to natural rubber prices at all.
Kedar Kailaje
Okay, but how is your like the CRMB or other products that you sell that is benchmark to what price?
Gaurav Sekhri
Again crmb, there is no benchmark to anything as such. It’s a unique product in itself. The what helps the business is, you know, because it is crumb rubber modifier being blended with bitumen. Now if bitumen prices are high, then by addition of crumb rubber you are actually making the product more economical. You’re not only making a better product, but you’re also making it more economical. So that then helps us with our demand.
Kedar Kailaje
Okay. Okay. So there is no well fixing.
operator
Mr. Keda, could you come again in the queue please? We do have another participant in line.
Kedar Kailaje
Okay, just, just, just clarification of this particular point. Then I’ll be done with my questions.
Gaurav Sekhri
Okay. Yeah, so basically I wanted to know like how is the pricing fixed for your products? Like if you’re going to sell to a particular company, then on what basis is the price decided to be operating. Various sectors as you know, and each sector has its own, you know, pricing dynamic in terms of when we are pricing products for the industrial sector, which is let’s say the tire companies, etc. They take various, they take their overall compound cost into play and by adding our materials they see, you know, how is that helping them with their sustainability goals. At the same time, of course they are always motivated to save cost and then they make their own recipe and that enables them to determine what price they can pay us and what price is a comfortable price for us to charge them.
So prices are determined like that. In case of the infra sector, I told you that when our modifier prices are lower than the bitumen prices, it helps us a lot because it increases the demand. Currently petroleum products are quite high and by adding the recycled rubber prices, the price of the end product actually comes down, which helps us in, you know, with higher demand predictability. And in case of the consumer sector, you know, you are competing with other people making similar kind of products and it’s a dynamic of, you know, who’s able to make it more efficiently and supply at the desired price of the customer.
I hope that helps answer your question.
Kedar Kailaje
Yeah, yeah, yeah, very much. Yeah, thank you.
Gaurav Sekhri
Okay, thanks.
operator
The next question is from the line of Mr. Chidananda Mohanty from Green Portfolio. Please go ahead, sir.
Chidananda Mohanty
Thanks again for the opportunity. So I have two questions, the first being I think in Q1 FY26 you started importing tires from South Africa. So exactly how much tires have been imported in Q1? A quantified number.
Gaurav Sekhri
How much quantity per month or per quarter? We don’t. We can tell you that on an average about approximately 70% of our tires come from imported sources. By telling you exactly which source gives us how much is not. This is not the forum for us to discuss that is sensitive to our business.
Chidananda Mohanty
Okay, so next question is that you mentioned that the ELT prices have been increased in Oman specifically. So can you give the reasons behind it or exactly. It increased in Roman only. Sorry, woman.
Gaurav Sekhri
If I heard you correctly, your. Your question is that the price of raw material has increased in Oman. Is that your question?
Chidananda Mohanty
Yeah, yeah, yeah, yeah, yeah, yeah.
Gaurav Sekhri
So that is correct. In Oman, you know, subsequent to us making our investment, we have seen at least three new recycling facilities have also come up. As a result, the price of end of life tires there has gone up, putting some pressure on margins for the time being.
Chidananda Mohanty
Okay, so the very last question, you previously have told that you are working with government of Oman to bring CRMD into Oman also. Any update on that?
Gaurav Sekhri
Yes, it is work in progress. They are still, you know, doing analysis and testing of the road that we had that stretch that we had laid for them. It is still an ongoing process.
Chidananda Mohanty
Thank you. That is from myself.
operator
Thank you ladies and gentlemen. That was the last question for this session. I would now like to hand the conference over to the management for closing comments.
Gaurav Sekhri
Thank you everyone. We sincerely appreciate your participation in this conference call and trust that we have effectively addressed all your queries. If you require any further information or have additional questions, please feel free to contact. Contact our investor relations team and Co India Advisors. Once again, thank you for your engagement and your interest in our company and continued support. Have a nice day.
operator
Thank you, sir. On behalf of Go India Advisors llp, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.