Indag Rubber Limited, a pioneer in the Indian retreading sector, has announced its unaudited financial results for the quarter and nine months ended 31 December 2025. The company, which introduced cold retreading technology to the Indian market in the early 1980s, demonstrated a robust recovery in its latest quarterly performance, highlighted by a significant surge in profitability despite broader market fluctuations.
Growth Despite Market Conditions
For the third quarter of the 2026 fiscal year, Indag Rubber reported total revenue of Rs. 58.7 crore ($6.45 million), a 5% increase from the same period the previous year. This growth was primarily fuelled by a rebound in volumes within both the aftermarket segment and the State Transport Undertaking (STU) business.
The company’s focus on operational efficiency was evident in its bottom-line results. EBITDA for the quarter reached Rs. 6.0 crore ($0.66 million), a 129% jump from Q3 FY25. This performance led to a 550-basis-point expansion in the EBITDA margin, bringing it to 10.1%. Profit After Tax (PAT) followed a similar trajectory, more than tripling to Rs. 3.4 crore ($0.37 million).
Reflecting on the nine-month period (9M FY26), total revenue stood at Rs. 161.7 crore ($17.79 million). While this represents a 10% year-on-year decline—largely due to lower STU volumes in the first quarter—the company has successfully improved its profitability profile throughout the period. The nine-month EBITDA grew by 24% to Rs. 16.1 crore ($1.77 million), with PAT increasing by 30% to Rs. 8.8 crore ($0.97 million).
Vijay Shrinivas, CEO of Indag Rubber Limited, provided the following commentary on the results:
“Revenue for the quarter stood at Rs. 58.7 crore, reflecting a growth of 5% YoY. EBITDA grew by 129% YoY to Rs. 6 crore. Profit After Tax more than tripled YoY and stood at Rs. 3 crore. I am happy to share that we have continued to maintain our margin improvement trajectory and also delivered revenue growth during Q3FY26. The revenue growth was primarily driven by both aftermarket and STU business, which witnessed a rebound in volumes. On the profitability front, EBITDA margins improved by ~550 bps YoY to 10.1%. This improvement was driven by a better product mix, cost optimisation, and gradual easing of raw material costs. On a 9MFY26 basis, our revenue stood at Rs. 161.7 crore. While revenue declined 10% YoY primarily on account of lower volumes from STU business in Q1FY26, the profitability trajectory has been encouraging. 9MFY26 EBITDA grew 24% YoY to Rs. 16.1 crore, with EBITDA margin expanding 270 bps to 10.0%, compared to 7.3% in 9M FY25. PAT for the nine-month period stood at Rs. 8.8 crore, a growth of 30% YoY, with PAT margin improving to 5.5% from 3.8%. The macro environment continues to improve with Union Budget FY27 raising public capex to Rs. 12.2 lakh crore, including Rs. 3.10 lakh crore for Roads & Highways, directly supporting freight movement and retreading demand. The recent India-US and India-EU trade agreements have further eased global uncertainty, strengthening the outlook for domestic logistics activity. We remain confident in our ability to sustain the positive momentum in the business. With improving demand fundamentals, a strengthening margin profile, and supportive industry tailwinds, we believe we are well-positioned to deliver consistent and profitable growth while maintaining a close watch on raw material prices and global developments.”
Indag Rubber remains optimistic about the future, citing supportive government policies. The Union Budget FY27 has allocated Rs. 3.10 lakh crore ($34.1 billion) for roads and highways, a move expected to directly stimulate freight movement and, consequently, retreading demand across India.
Based at its state-of-the-art facility in Nalagarh, Himachal Pradesh, Indag Rubber continues to operate with an annual capacity of 20,000 tonnes of precured tread rubber (PTR). The company remains committed to providing its “Lowest Cost per Kilometre” promise to its diverse customer base.
