TOLINS

Tolins Tyres Margin Outlook & Key Monitors Q2 Margin Pressures - Volume deleverage + fixed cost absorption + RM inflation. - Employee costs up from Q1 skilled labour hiring; absorption via automation + volumes. Cost Innovation - Terra Rubber recycling subsidiary: ₹2 Cr capex; recycles 3-5% scrap, lowers RM costs. - Commissioning Dec/Jan without quality compromise. Guidance Framework - Minimum 10% topline growth commitment. - Margins protected vs prior years; upside possible. Execution Monitors - Q3 volume sustainability. - TN STU order ramp (₹25 Cr FY26). - Apollo job-work to revenue conversion. - Tractor tyre scale-up (₹3-4 Cr incremental). - UAE export utilisation. Big Picture - Classic underutilised manufacturing (32-48% capacity); retreading-led with visible operating leverage. Key Takeaway: Recycling efficiencies + order execution set stage for margin expansion as Tolins converts low utilisation to profitability.