Tinna Rubber and Infrastructure Limited (BSE: 530475) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Subodh Kumar Sharma — Executive Director and Chief Operating Officer
Ravindra Chhabra — Chief Financial Officer
Gaurav Sekhri — Joint Managing Director
Analysts:
Unidentified Participant
Mihir Vora — Analyst
Lalit Rai — Analyst
Vinit Agarwal — Analyst
Viraj Mahadevia — Analyst
Navani Naredi — Analyst
Divy Agarwal — Analyst
Mohit Vijay — Analyst
Adhiraj Sarin — Analyst
Shashank Agarwal — Analyst
Sai Gopi — Analyst
Atharva, — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Tina Rubber & Infrastructure Ltd. Q4FY25 and full year FY25 earnings conference call hosted by Equitus Securities. 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 please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Mihir Vora from Equirus Securities. Thank you. And over to you, Mr. Vora.
Mihir Vora — Analyst
Yeah. Yeah. Good. Good afternoon everyone. So welcome to the 4Q FY25 earnings conference call of Tina Rubber and Infrastructure Limited. We have on the call with us Mr. Gaurav Sekri, Joint Managing Director. Mr. Subodh Kumar Sharma, Director and Chief Operating Officer and Mr. Ravindra Chabra, Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statement and must be therefore viewed in conjunction with the risks that the company faces.
May I now request Mr. Gaurav to take us through the company’s business outlook and financial highlight. Thank you. And over to you, sir.
Gaurav Sekhri — Joint Managing Director
Thank you. Mehit. Am I audible?
operator
Yes, sir.
Gaurav Sekhri — Joint Managing Director
Okay, thanks. So good afternoon everyone and thank you for joining us today for the Q4 and FY25 earnings con call of Tina Rubber and Infrastructure Limited. Our financial results and earnings presentation are available on our website and on stock exchanges. I believe you may have had a chance to review the same. I will briefly take you through the strategic updates post which my colleague Subodh, our CEO will take over. And give details about the operational and financial performance highlights for the fourth quarter and financial year in 2025. It gives me immense pleasure to share that Tina Rubber has delivered a strong and consistent performance with a 3 year CAGR of 30% growth in revenue, 27% growth in EBITDA and 42% growth in patients in FY25.
We are happy to share that we have achieved 39% revenue growth reaching 505 crores. And surpassed the ambitious 500 crore revenue guidance we had given out at the start of the year. FY25, EBITDA and PAT also increased significantly by 22% and 20% respectively to 76 crores and 48 crores respectively. Coming to Strategic Updates I am delighted to share that Tina achieved a major milestone with its successful listing on the NSE in April 2025. This milestone, alongside our existing presence on the BSE underscores our commitment to enhance visibility and accessibility in India’s capital markets. On the capacity expansion front, we have significantly scaled up our tire crushing capacity to 185,000 metric tons per annum, exceeding our earlier guidance of 150,000 tonnes per annum.
With strong momentum in place, we are confident of further increasing this capacity to 250,000 tonnes by FY27. For FY25, the planned capital expenditure of approximately 50 crores has been completed in line with our guidance. Looking ahead, we plan to invest around 100 crores over next two years. Additionally, we intend to raise approximately 150 crores through QIP to further strengthen our existing business and to set up a recovered carbon plant along with some other capacity expansions. We hereby provide you a brief overview on the projects. In FY25, our Varley plant contributed approximately 58 crores to overall sales operating at a capacity utilization of around 50%.
Additionally, we have expanded its capabilities by adding capacity to recycle 10,000 tonnes of TBR, further strengthening our recycling infrastructure. The polymer composites business began contributing to our revenues from H2FY25 in a small way. During the year TINA successfully commenced production of recycled engineered plastics and master batch which has contributed approximately 1% of to our overall top line in FY25. The renewable energy solar power system commissioned in Q2 FY25 generated a total savings of 6.5 million rupees in FY25 and that is in line with our expectations. Turning to our international initiatives, I am proud to highlight the continued success of Global Recycle LLC in Oman which has served as a strong testament of our capabilities and our strategic decision to invest in Oman.
Encouraged by this achievement, we are now accelerating our global expansion strategy with Saudi Arabia and South Africa poised to become our next strategic foothold as we extend our presence into high potential international markets. In Oman, the existing plant is running successfully at around 85% capacity utilization. We have hired a team of professionals to build market for our recycled rubber materials within GCC region and we are optimistic that we will be selling majority of our production within GCC by end of this financial year. We do not foresee any further capacity expansion in Oman due to limited availability of ELTS and considering that we are already recycling approximately 30% of the end of life tires generated on Oman In Saudi Arabia we are in process of identifying suitable land for establishing the necessary infrastructure to support our planned investment to set up a 24,000 ton per annum recycling facility.
The aim is to commission the project in the second half of FY26. In South Africa the JV company has been granted approval to export 24,000 tonnes of end of life tyres from South Africa. We intend to bring these to India for further processing. As part of the first phase, the company has commenced development of the infrastructure with operations expected to commence in Q1 of FY26. I am very pleased to announce that the board of directors has recommended a final dividend of four rupees per share reflecting the company’s continued commitment to delivering value to its esteemed shareholders.
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 over 25% to reach 1000 crores in revenue by FY28. We intend to grow profitability by over 33% and we intend to maintain EBITDA margins of around 18% and we are targeting ROCE of around 30%.
With that I would like to hand over to Subodh, the CEO of Tinarabhav for his insights and comments on operational and financial performance. Over to you Subodh.
Subodh Kumar Sharma — Executive Director and Chief Operating Officer
Thank you Gauravji. Good afternoon everyone. Am I audible?
operator
Moderator sir, you are loud and clear.
Subodh Kumar Sharma — Executive Director and Chief Operating Officer
Thank you. So coming to operational performance in FY25 the volume of tires processed saw a substantial growth of 35%. With Q4 FY25 recording a year on year increase of 14%. On a Q&Q rise of 16%. Regarding F25 segmental performance revenues from the infrastructure, industrial, consumer and steel segments have grown by 18, 46, 55 and 109% respectively on a YOY basis. Segment wise revenue contribution in FY25 was led by infrastructure at 48% followed by industrial at 22%, steel at 13 and consumer at 7%. This also has, you know, 1% contribution from our recently started polymer composite and master batch businesses.
The infrastructure segment volume has grown by 21%. This growth has been supported by 75% volume growth in processing of rubberized bitumen and over 50% volume growth from the bitumen emulsion side. Industrial segment recorded an impressive revenue growth of 46% with approximately 29.6 crores attributed to contribution from EPR credits. Exports have grown by 28% in volume in FY25 and have remained our focus area in FY25. Though the domestic tire industry remained stable, revenue growth was majorly contributed by exports. The consumer segment witnessed a significant volume growth of 58% with sales continuing to rise. This segment will continue to be a key focus for enhancing capacity utilization at Varale, Maharashtra.
In fact, in the FY25, Varley has operated at around 55% of capacity utilization and it yet to run on its peak. The steel segment saw impressive volume growth of 95% driven by higher tire recycling volumes and the inclusion of steel abrasives in the product portfolio. Going forward, we expect strong growth in steel abrasive business due to increased focus on defense spending by government. Coming to consolidated financial performance for FY25, revenue increased by 39% to rupees 505 crores due to an increase in tire caching volume and operational efficiencies. EBITDA and PAT increased by 22% and 20% respectively to Rupees 76 crores and Rupees 48 crores respectively.
Margins saw slight dip due to higher raw material cost driven by elevated ocean freights. Nevertheless, EBITDA and Part margin remained robust at 15 and 9.6% respectively. Tina delivered a strong financial performance with ROCE exceeding 26% and ROE surpassing 27%. Steadily progressing towards our vision of achieving ROCE 30% plus. Our working capital cycle has seen a remarkable transformation, improving by an impressive 48% from 62 days in FY22 to just 42 days in FY25. Reflecting our unwavering focus on operational efficiency and financial discipline On a standalone basis, TINA showed a similar growth story with revenue, EBITDA and PAT up by 39, 18 and 12% respectively.
Coming to the consolidated financial performance for the quarter, revenue increased to rupees 129 crores which is up by 17% on yoy basis and 5% on Q1Q basis. EBITDA and PAT increased by 18% and 43% on quarter on quarter basis. So just to summarize Tina Rubber is advancing steadily towards the realization of its Vision 2028. Key strategic initiatives include scaling up tire crushing capacity to over 250,000 metric ton by FY27, undertaking substantial capital investment, establishing a resilient global procurement network and embracing a fully integrated business model are laying a strong foundation for sustained long term growth.
Complementing this are the company’s diverse and customized product offerings, a growing focus on international market and an experienced leadership team all backed by the unwavering support of its stakeholders reinforcing a promising growth trajectory.
I would now like to open the floor for question and answer. Thank you. And over to you moderator. Thank you.
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 touchstone telephone. If you wish to withdraw yourself from the question queue, you may press Star and two participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Once again, you may press Star and one to join the question queue. The first question comes from the line of Lalit Rai with White Bridge Capital. Please go ahead.
Lalit Rai
Hi sir, good afternoon. So the first question is on your raw material prices. You have mentioned in the presentation that there was an elevated ocean freight factor to it. Was that all that was to it? And has that cooled off now?
Gaurav Sekhri
Hi, this is Gaurav Shekhri. See for us in dealing and handling with scrap and we import a fair bit of end of wrap tyres from outside India. Freight is a large and important component of the overall cost and when that changes, you know, it impacts our cost as well. So largely I would attribute the cost to the freight.
Lalit Rai
All right, sir. And has this cooled off after the end of the quarter from March onwards
Gaurav Sekhri
It is stabilizing, it is getting better. And we also work on multiple origins. So we are also constantly monitoring which are the least cost options for us. So that also plays a role in impacting our decision. But overall they have stabilized. They haven’t really come down but they have stabilized.
Lalit Rai
All right. And for your procurement of tire scrap, how much do we do domestically and how much is imported In percentage terms ?
Gaurav Sekhri
It changes but typically it’s about 70% imports and 30% domestic.
Lalit Rai
All right sir. And you also mentioned in the call that you are setting up recovered carbon black plant. Would you be able to share some more details about, you know, the timing, the amount of capex that it would take or if you’ve identified a location for it and what kind of a payback period would you be expecting from this?
Gaurav Sekhri
See it is a bit early for me to share all these details in open platform. We consider some of this information sensitive to the company. Optionality for us is, you know we already have infrastructure and footprint pan India with our facilities in South, north west, et cetera. So it will be in all likelihood within our existing complex or very close to our existing complex. But those are the decisions we are finalizing now as we speak.
Lalit Rai
Sure sir, but have you. Can you give some indication of the amount of Capex that you are looking at for this?
Gaurav Sekhri
It is at this rate, this early I would not want to give you any indication on the Capex plan but you know we are quite committed and we have almost finalized on technology. But until we completely close everything I do not want to give any number.
Lalit Rai
Sure sir, we will wait for whenever you guys are more comfortable about sharing this. And lastly sir, on the guidance. So I believe earlier you were targeting about 900 crores kind of revenues by FY27 and now you are talking about thousand crore by FY28. So is that so that 900 crore then doesn’t look achievable, right? If you’re going to grow 25% that year. So is this like a slight downward revision of what you were expecting earlier?
Gaurav Sekhri
We are you know making some of these investments which we had always said that you know Capex and investments will be made in. In order to get to this target of 900 and now let’s say 1000 by FY28. So because of that there is some fluidity. I would not rule out 900 crores in FY27 completely but. And all I can tell you today is that we will, you know if we don’t get to it we’ll probably get very close to it.
Lalit Rai
Sure sir, that’s very helpful and thanks a lot. That’s all from me.
Gaurav Sekhri
Okay, thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may press star and 1. We have our next question from Vinit Agarwal from Aditya Birlammani. Please go ahead.
Vinit Agarwal
Hello. Thank you. Good afternoon sir. So just couple of questions from my side. Your working capital has improved significantly. So if you can throw some light on that and can we expect this to be a new normal.
Subodh Kumar Sharma
Hi Vineet. Hi Vineet Subodh here. So you know in the last two years if you see, you know there is a drastic improvement on the working capital side. But going forward like you know we mentioned there are many avenues, you know we are opening up master batch business, plastic recycling and all. So it’s very difficult to predict right now. But with the existing business what we are you know doing since last many years we can claim. Yes we can. But by adding up some of the new product line we yet to determine and I think if not close maybe 10%, 15% impact will be there on the working capital days.
Vinit Agarwal
Understood. And secondly like your net debt to equity is increasing for the last two years and we understand you have more than doubled your capacity. But what can be the comfortable debt level which India internally you are targeting.
Gaurav Sekhri
Gaurav Sekri here, you know, for increasing capacities and investments. You know, debt is a necessary and all other parameters and ratios and they are included in our presentation as well. So my answer to your question is that we are very comfortable with our current level of debt. In fact, if we have to add also another 20 odd crores also we are comfortable. And that is sort of our take because you know, we monitor ratios more than the absolute number and our ratios are all looking very healthy.
Vinit Agarwal
Thank you so much, sir.
operator
Thank you. Participants, you may press Star and one to ask a question. The next question is from the line of Veeraj Mahadevia from Moneygroup. Please go ahead.
Viraj Mahadevia
Hi Mr. Setri, congrats on the stable results question regarding rubber prices. Given that they’ve come off meaningfully in the last few months, does that have any bearing on the need or the desire for using recycled rubber in your customers?
Gaurav Sekhri
Your voice is slightly muffled so I can’t fully understand what you’re saying. I think your question is about natural rubber and the impact on.
Viraj Mahadevia
Yes, yes, absolutely. The pricing on natural rubber has come off meaningfully in the last few months. Does that have any bearing on the need for recycled rubber use by your end consumers?
Gaurav Sekhri
So, you know, I think we discussed this in various calls and I’m glad you brought it up again because it is relevant. But you know, the impact that our business experiences high natural rubber prices is positive, but it is not directly, you know, we cannot directly coordinate to say that it will lead to some dramatic increase in use of recycled rubber materials because there is some limitation in various products like tires for example, how much recycled rubber can be used. But what is a certainty is that the motivation to use recycled rubber increases and that becomes a priority, whether it is in their research or in their procurement plan, etc. Which is a good thing for our industry.
Viraj Mahadevia
So the motivation increases when prices are high. Right. But I’m saying given that prices have come off, do you see a change in that motivation?
Gaurav Sekhri
No., The prices, like I said, the prices are still at a fairly high level. Even though they may have corrected marginally or they fluctuated. It’s a commodity. But at any given time, virgin Polymer prices are 3x to 4x of recycled rubber materials.
Viraj Mahadevia
Understood. So that does not have a big bearing.
Gaurav Sekhri
Yeah.
Viraj Mahadevia
Okay. And in terms of the ramp up of your new plants, are you expecting a meaningful ramp up? Given visibility for FY26 and otherwise, .
Gaurav Sekhri
The big contribution in this FY26 in terms of growth will come from. We will now see Varley operating at optimal capacity. Last financial year, the first half of financial year went in stabilizing equipment and machinery and the processes. Now it has been running quite well to our satisfaction. So that will contribute to its potential and that will add top line for sure. And of course all the other things that we have in the works will also contribute quite significantly in the growth we are expecting in FY26.
Viraj Mahadevia
Understood. Thank you. All the best.
Gaurav Sekhri
Thank you.
operator
Thank you. Participants, you may press Star and one to join the question queue. We have the next question from Naveena Reddy from Naredi Investments. Please go ahead.
Navani Naredi
Hello.
Gaurav Sekhri
Yeah, hello.
Navani Naredi
Yes, hi, this is Navni Naridi from Naredi Investment. So thank you for taking my question. So my first question is regarding recycled engineered plastic and master batch which has contributed 1% of the total top line already. So my question is like, so going forward, like in two, three, next two, three years, how much do we think that we will be going to contribute in the overall product mix?
And my second question is regarding how are we trying to mitigate the risk of rising raw material prices? Since in Q4 we saw a significant decrease in the margins, EBITDA margin. So what are the basically how are we trying to mitigate the risk?
Subodh Kumar Sharma
So hi Niveena, this is Subodh here. So your first question about the recycled engineered plastic and master batch business. This business we initiated and you know, we commissioned plant and machinery, you know, in the early FY25. And as you know, if you start any new business, it takes time to stabilize. So last financial year it has Contributed Close to 1% to the top line. And going forward now the business is getting stable and we could see some sales, you know, in the last financial year. So going forward we see a potential of around, you know, adding around 30 to 40 crores to the top line.
Navani Naredi
Okay, so 30 to 40 crores is achievable next year. So like how much it will be contributing like 1% of the top line. Right now it is contributing so.
Gaurav Sekhri
5%. addition to our top line.
Navani Naredi
All right. And how are we trying to mitigate the risk of rising raw material?
Subodh Kumar Sharma
You know, during the last earning call of Q Q3 you can see the changes in the EBITDA margin and the PAT margin because we have given a guidance that we would be pushing the customers and requesting the customer for correction in the prices. Some of them have started happening and going forward we see further correction. So that’s how we are trying to mitigate the pricing and by changing the product mix.
Navani Naredi
All right, so can we explain expect going forward that we will be able to like get the normal prices back like the material prices, prices of the raw material back to normal going forward. Will we be able to getting a.
Subodh Kumar Sharma
Stabilized navina and in the long run our aim is to maintain, you know, at least 15% of EBITDA margin at a gross level. And that’s what we are wishing for.
Navani Naredi
All right, thank you so much and all the best for the future, sir.
Subodh Kumar Sharma
Thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may please press Star and one that is Star and one to ask a question, ladies and gentlemen, our next question comes from Divi Aggarwal from FICOM family office. Please go ahead.
Divy Agarwal
Yeah, hi sir, thanks for taking my question. Am I audible?
Gaurav Sekhri
Very much sir. Word please.
Divy Agarwal
Yeah, yeah. So few questions. So firstly, I know you don’t, you guys don’t share segment wise margins but I just wanted to know the margin EBITDA margins for crmb. Any light on like on this particular margin segment front for CRMB would be helpful, sir.
Gaurav Sekhri
Hi, this is Gaurav Sikri. You know we will give you the same answer as we have given in the past that you know we tend to enjoy better EBITDA margins than our company average in the infrastructure related business. But we consider this information sensitive to our business and we don’t like to disclose it in open platform.
Divy Agarwal
I understand that, sir. Secondly sir, in terms of competition in the CRMD segment, I just wanted to know. So one of your peers was trying to get into this segment. So how do you think would be the competition? Because you guys hold a good share in CRMD segment. So do you think there would be any loss of market share if your peer is entering into the segment?
Gaurav Sekhri
See our take is that we’ve been in this business for more than two decades and we have a fair bit of goodwill and relationships in the market. But any organized player coming into the business is a welcome step because it addresses is the overall opportunity. If you see the overall use of CRMB is still only about 3% or 4% in the in the use of bitumen in roads. So we have only begun to scratch the surface. So if more organized players come, it will help expand the tank in my view.
Divy Agarwal
Right. So. Yes, right, right. That was helpful. Next. Sir, I just wanted to know what would be the share of MRP and the reclaimed rubber in the industrial segment. Can you share that? Sir.
Gaurav Sekhri
In the industrial segment the majority of the contribution Comes both put together. Would be 22% of total revenue. Yeah. So from what total revenue will be 22% in terms of industrial segment. If our sale is let’s say 100, the sale of MRP and reclaim put together would be maybe 80 or 85%.
Divy Agarwal
And so in that 80 to 85% MRP would be a bigger part or the reclaimed rubber would be a bigger part.
Gaurav Sekhri
For us in our context. They’re both modules.
Divy Agarwal
Okay, sir, got it. And lastly sir, I just wanted to know what’s the update or pyrolysis plant? Can you share an update on that Sir ?
Gaurav Sekhri
I think we just discussed that with the earlier, you know, question that we took regarding recycled rated carbon black. We are looking at technologies. We have a pretty good handle of which direction we wish to go to and we will shortly be finalizing location will be in one of our existing plants. Beyond that at this stage I won’t be able to share more details.
Divy Agarwal
I understand. Thanks and all the best.
Gaurav Sekhri
Thank you.
operator
Thank you. Participants, you may press Star and One to join the question queue that is Star and One. If you wish to ask a question, the next question comes from Mohit Vijay from Oculus Capital Growth Fund. Please go ahead.
Mohit Vijay
Good afternoon sir.
Gaurav Sekhri
Yeah, good afternoon.
Mohit Vijay
Just wanted to know more about the capital requirements for the CAPEX in the coming financial year. The fact that you told us that you’re comfortable with the debt equity level but at the same time you’re looking at saving the Kat as well. So can you please elaborate on the capital allocation part of it, please.
Gaurav Sekhri
See we are looking to invest approximately 100 crores over next two years. That is what we have shared. We are in the middle of QIP and we are also comfortable to take a little more debt as well. So between the QIP debt etc, you know, we. That is how we will be funding our ongoing CapEx.
Mohit Vijay
Okay, and what size are we looking at in terms of fundraising, sir?
Gaurav Sekhri
What size of Sorry.
Mohit Vijay
What size are we looking to raise in terms of equity UIP?
Gaurav Sekhri
Aapproximately 125 watt crores.
Mohit Vijay
So this is more than the staples that plan to do actually. So we need some more perspective in terms of dilution and fundraising plan. Sir, if you can share some bit of it.
Gaurav Sekhri
We don’t want to visit the markets again and again as we see opportunities there are, you know, many other opportunities or inorganic as well that we continue to see. So when we start the process we believe it is better. Better to keep some firepower in the balance sheet. And with that intention we have decided on this number.
Mohit Vijay
Okay. Okay. Okay. Thank you sir.
operator
Thank you. Ladies and gentlemen, to ask a question you may please press Star and one on your touchtone telephones. To ask a question, you may press star and 1. We have our next question from the line of Mihir Vora from Equivirus Securities Private Limited. Please go ahead.
Mihir Vora
Yeah, hi sir. Thank you for taking my question. So basically I have one question regarding the epr. So the EPR in the quarter seemed a bit high. So was there some backlog also where we, you know, were put, you know, registering the EPR for say your FY24 or first above FY25. So first question is that, and apart from that going ahead, what do we expect on the EPR terms in terms of what is the rate going on right now and what do we expect a stable rate going ahead in the industry?
Unidentified Speaker
Hi m this in terms of. Firstly I would like to clarify here that government policy on monetization of EP to be stabilized. However, during current year we have considered total 26 crores EPR in terms of. Value out of that. That current pertains to our earlier years and remaining for current years. Okay.
Mihir Vora
Okay. And the remaining is of this year. So we are done with this year. Right.
Gaurav Sekhri
So me just to add further what Abhay said, you were asking about the ongoing price. So currently your value is trading around 2 rupee 25 paisa to 2 rupees 60 paisa somewhere in between.
Mihir Vora
Okay. Okay. And we expect it to be in similar range going ahead like on our.
Gaurav Sekhri
Yeah, because now the new financial year has started. So you will, you know, slowly, slowly get to know about the obligation and all and supply demand situation will be clear which will drive the price of the EPR going forward.
Mihir Vora
Right. And FY26 won’t see major backlog of FY25. Right?
Gaurav Sekhri
Yes.
Mihir Vora
Okay. Okay. Yeah. That’s all from my side. Thank you.
operator
Thank you. Participants, you may press Star and one to ask a question that is Star and one. If you wish to join the question queue. Our next question is from Adi Raj Sarin from Master and Little Associates. Please go ahead.
Adhiraj Sarin
Yeah. Question I have is that your revenue went up by 35% and EBITDA only by 22. And when I look at the P and L, there has been a substantial increase in employee cost and other costs. Hopefully this will now stabilize and therefore my take would be that revenue increase of 25% next year should by and large flow into EBITDA because it’s unlikely, I think that your employee cost and other costs will increase by the Same rate. Is that the right understanding?
Gaurav Sekhri
Yes. Hi, Gaurav here. This is a fair assessment that you have just made a lot of our initiatives, whether it was when we started the Varley plant and gearing up for the PCMB business involved, getting our people in place for these businesses. And some have already taken off, some are beginning to take off. So we will see the impact of these in the coming financial year. And you are right to assume that a large part of those costs related to employees, manpower, etc. Have already been done.
Adhiraj Sarin
Great. Thank you.
operator
Thank you. Participants, you may press Star and one if you wish to ask questions. That is Star and one to ask a question. Ladies and gentlemen, our next question comes from the line of Shashank Agarwal from Cisco. Please go ahead.
Shashank Agarwal
Hello. Good afternoon sir. So I just have two questions, sir. How much is the ELT generation in India? And second, sir, regarding your carbon black. In previous con calls you had mentioned. That the technology was not up to. The mark so that the pollution is less. So have you found the new technology?
Gaurav Sekhri
Hi. Yes. You know we have always been in touch with the market on what technologies are available. We are more confident now and we are seeing not just one but you know, at least three credible options to choose from. So that is why we have decided to also get into this business because there is good synergy with our, with our existing business. So that that is our stand on regenerated carbon black. What was the first part of your question?
Shashank Agarwal
Regarding the amount of EIT that can, that can be generated in India.
Gaurav Sekhri
So India, it is our estimate generates between 2.5 to maybe 3 million tonnes of end of life tires annually. And we are hoping that with this EPR policy and just the tightening of norms by the state pollution control boards and cpcb, more of these tyres will find their way for responsible recycling.
Shashank Agarwal
And one small part to the carbon black business. So like bigger companies like Himadri and all are also planning to enter into this segment. So how will the competitive intensity change for the raw material procurement?
Gaurav Sekhri
Like I said, we have a lot of tyres right now going into sort of not environmentally desirous way of recycling. So the availability of these tires will increase as more organized players come with better quality plants, more efficient plants. So I don’t see any major issue in terms of intensity or more people coming in causing a problem in terms of availability of raw material. Plus there is always the option to import.
Shashank Agarwal
And the PCR tires can also be used in this plant, right?
Gaurav Sekhri
Yes.
Shashank Agarwal
Thank you for the answer.
operator
Thank you ladies and Gentlemen, to ask a question, you may please press Star and one on your touchstone telephones, you may press Star and one to ask a question. Ladies and gentlemen, we have our next question from the line of Sai Gopi, an individual investor. Please go ahead.
Sai Gopi
Hello sir, thanks for the opportunity. Two quick questions like, you know, what is your guidance for the FY26 in terms of top line and the bottom line? And also how do you see the situation currently because you mentioned that the first freight rates have gone up. Do you have opportunity to raise the dependency on imports and increase the domestic sourcing of rapa?
Gaurav Sekhri
In terms of our outlook for the current financial year, we are expecting to be around 25% growth in top line in the current financial year. And I did not really fully understand the latter part of what you were asking.
Sai Gopi
In the future, do you see any challenge with respect to the freight rates again going up in the coming financial year?
Gaurav Sekhri
It is very hard to predict that. There are many, many levers to what determines ocean freight. So it is very hard to predict. We can only adjust to it, we can only plan to mitigate against it. So that is the way to deal with it. It is very hard to predict. I think a lot of global uncertainty and movements are behind us. But even impacts like a very high tax tariffs in the US even that disrupts container freights very dramatically. So we, you know, that is very hard to predict.
Sai Gopi
Okay, thank you sir. Thank you for the opportunity.
operator
Thank you. Participants who wish to ask questions may please press Star and one at this time, that is Star and one to enter the question queue. Our next question comes from the line of Atharva, an individual investor. Please go ahead, sir.
Atharva,
Am I audible?
Gaurav Sekhri
Yes, yes. Please go ahead, sir.
Atharva,
Actually I’m reading annual report and I got, and I got to know that our remuneration exceeding more than 10% in FY24 and 23. So sir, can you explain, sir, why it is increasing more than 10%? Because sir, the axis, you cannot withdraw more than 10%.
Gaurav Sekhri
See, I. I know for sure and that I can tell you with certainty that we are compliant with all the rules and regulations in terms of compensation. I think by remuneration you mean Director remuneration and compensation, right? We are absolutely compliant that I can tell you in certainty. If you have any other specific question on this, you can are welcome to send us an email and we can clarify to you, but we are compliant.
Atharva,
Okay, sir. Thank you, sir. That was my only question. Thank you.
Gaurav Sekhri
Sure.
operator
Thank you. We have no further questions. Ladies and gentlemen, I would now like to hand the conference over to the management for closing remarks.
Gaurav Sekhri
Thank you so much. We sincerely appreciate your participation in this conference call and trust that we have effectively addressed your queries. If you require any further information or have additional questions, please feel free to contact our investor relations team at Goindia Advisors. Once again, thank you for your engagement and continued support. Have a lovely day.
operator
Thank you on behalf of Equivirus Securities. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.