Elgi Rubber Company Limited (ELGIRUBCO)
₹54.41 +1.44% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Elgi Rubber's revenue was ₹70.1 Cr (-18.5% year on year, -18.5% on the previous quarter), and net profit ₹40.8 Cr (against a loss a year earlier); the operating margin was 3.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹70.1 | -18.5% | -18.5% |
| Operating profit | ₹2.6 | +30.6% | from loss |
| Net profit | ₹40.8 | from loss | from loss |
| EPS (₹) | 8.16 | +574.4% | from loss |
| Operating margin | 3.7% | — | — |
ELGIRUBCO delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 70.64% of the ELGIRUBCO shares traded on NSE were taken to delivery, against the stock's own 20-session average of 58.03%. That is higher than usual for this stock. Turnover was only ₹6 lakh, so a handful of trades can move this figure. Volume was 0.2 times its average, well below normal.
Delivery in the last 5 sessions: 66.1% · 54.6% · 40.3% · 61.3% · 70.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Elgi Rubber Company has updated the exchange regarding the voluntary closure of its wholly owned Australian subsidiary, Pincott International Pty Limited. The Australian Securities and Investments Commission (ASIC) has acknowledged the deregistration application, with final closure expected by December 31, 2026. The subsidiary is inoperative, contributed Nil revenue in FY26, and had a negative net worth of INR (60.76) million (-3.40% of parent net worth). There is no cash consideration involved in this closure.
- ASIC acknowledged deregistration of wholly owned subsidiary Pincott International Pty Limited
- Turnover contribution of the subsidiary was Nil (0.00%) as of March 31, 2026
- Net worth of the subsidiary stood at INR (60.76) million (-3.40%) as of March 31, 2026
- Expected completion of the voluntary closure process is within December 31, 2026
- Sale consideration received is Nil
Elgi Rubber Company Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by the Registrar and Share Transfer Agent, MUFG Intime India Private Limited (formerly Link Intime India Private Limited), on October 7, 2026. It confirms that share certificates received for dematerialisation during the period were verified, mutilated, cancelled, and updated in member records within the prescribed timelines. This is a strictly routine regulatory filing with no financial or operational impact.
- Compliance certificate filed for the quarter ended September 30, 2026
- Issued by RTA MUFG Intime India Private Limited dated October 7, 2026
- Confirms timely processing, mutilation, and cancellation of dematerialised share certificates
- Filing submitted to the National Stock Exchange on October 8, 2026
Elgi Rubber Company Limited has executed a sale deed on September 9, 2026, completing the disposal of a non-core land and building property in Hyderabad for a total consideration of Rs 12.00 crore. The property measures approximately 1.07 acres (5,213.40 sq. yards) located at Auto Nagar, Bagh Hayathnagar. The transaction was entered into with an unrelated third-party buyer, Vega Elite LLP. The Rs 12.00 crore proceeds represent about 5.4% of the company's current market capitalization of Rs 223 crore, providing minor liquidity to a balance sheet holding Rs 190 crore in debt.
- Completed sale of 1.07 acres (5,213.40 sq. yards / 4,359.03 sq. meters) land and buildings in Hyderabad on September 9, 2026
- Total cash consideration received is Rs 12,00,00,000 (Rs 12.00 crore)
- Buyer identified as Vega Elite LLP, an unrelated third-party entity
- Sale was executed under prior postal ballot approval passed on October 28, 2023
Elgi Rubber Company Limited announced the voting results of its 20th Annual General Meeting held on August 27, 2026. All 5 resolutions were passed unanimously with 100% assent (representing 3,29,49,304 votes). Key approvals include the re-appointment of Sudarsan Varadaraj as Chairman & Managing Director for a 5-year term starting January 1, 2027, and Harsha Varadaraj as Whole-Time Director for 5 years starting November 6, 2026. Shareholders also adopted the FY26 financial statements and ratified the cost auditor's remuneration for FY27.
- All 5 resolutions passed unanimously with 100% votes in favour (3,29,49,304 valid votes cast)
- Sudarsan Varadaraj re-appointed as Chairman and Managing Director for a 5-year tenure effective January 1, 2027
- Harsha Varadaraj re-appointed as Whole-Time Director for a 5-year tenure effective November 6, 2026
- Adoption of FY26 standalone and consolidated financial statements approved by shareholders
- Ratification of remuneration for Cost Auditor M/s. P. Mohan Kumar & Co. for FY27 approved
Elgi Rubber Company Limited conducted its 20th Annual General Meeting (AGM) on August 27, 2026, via video conferencing with 48 members representing 26,271,323 shares present. Key resolutions transacted included the adoption of FY26 financial statements and the 5-year re-appointments of Sudarsan Varadaraj as Chairman and Managing Director (effective January 1, 2027) and Harsha Varadaraj as Executive Director (effective November 6, 2026). In addition, remuneration for the cost auditor was ratified, with voting results to be declared separately via scrutinizer's report.
- 20th AGM held on August 27, 2026, with 48 members representing 26,271,323 shares attending
- Special resolution proposed for re-appointment of Sudarsan Varadaraj as CMD for 5 years from January 1, 2027
- Special resolution proposed for re-appointment of Harsha Varadaraj as Executive Director for 5 years from November 6, 2026
- Meeting commenced at 10:00 AM and concluded at 10:13 AM with e-voting open until 10:28 AM
Elgi Rubber Company has approved the voluntary winding up of dormant subsidiaries in Kenya and Australia, which have been inoperative for 5 and 6 years respectively. The Kenya unit's net worth is just Rs 7.51 million (0.42% of consolidated net worth), making the impact non-material. The board also approved reversing Rs 1.66 Cr in interest receivable from its USA and Brazil subsidiaries to improve their financial positions. While the company reported a Q1 FY27 PAT of Rs 40.85 Cr, this was entirely driven by a one-time gain of Rs 43.26 Cr from the sale of land and buildings.
- Voluntary winding up of Kenya subsidiary which has been dormant for 5 years with Nil turnover.
- Winding up of Australia subsidiary (Pincott International) which has been inoperative for 6 years.
- Reversal of Rs 16.60 million (Rs 1.66 Cr) interest receivable from USA and Brazil subsidiaries.
- Q1 FY27 consolidated PAT of Rs 40.85 Cr includes an exceptional gain of Rs 43.26 Cr from asset sales.
- Kenya subsidiary winding up expected to be completed by March 31, 2027.
Elgi Rubber reported a consolidated net profit of Rs 40.85 Cr for Q1 FY27, a sharp turnaround from the Rs 204 Cr loss in the preceding quarter. However, this profit was primarily driven by a one-time exceptional gain of Rs 43.26 Cr from the sale of land and buildings. Operationally, the company remained thin with a pre-exceptional profit of only Rs 1.23 Cr. The board also approved reversing Rs 1.66 Cr in interest due from US and Brazil subsidiaries to support their financial health and initiated the winding up of dormant units in Kenya and Australia.
- Reported Q1 FY27 consolidated net profit of Rs 40.85 Cr, compared to a loss of Rs 204 Cr in Q4 FY26.
- Recognized an exceptional gain of Rs 43.26 Cr from the sale of land and buildings during the quarter.
- Approved reversal of Rs 16.60 million (Rs 1.66 Cr) in interest receivable from wholly-owned subsidiaries in the USA (Rs 2.09 mn) and Brazil (Rs 14.51 mn).
- Initiated voluntary winding up of dormant subsidiaries in Kenya (Net worth Rs 7.51 million) and Australia (inoperative for 6 years).
- Consolidated profit before exceptional items stood at a modest Rs 1.23 Cr for the June 2026 quarter.
Elgi Rubber reported a consolidated PAT of ₹40.85 Cr for Q1 FY27, a significant turnaround from a loss of ₹1.51 Cr in the same quarter last year. This profit was entirely driven by an exceptional gain of ₹43.26 Cr from the sale of land and buildings, as core operations remain under pressure. The board also approved reversing ₹1.66 Cr in interest receivables from its US and Brazil subsidiaries to improve their financial health. Additionally, the company is winding up dormant subsidiaries in Kenya and Australia to streamline its international structure.
- Consolidated PAT reached ₹40.85 Cr in Q1 FY27, compared to a loss of ₹204 Cr in the previous quarter (Mar 2026).
- Exceptional gain of ₹43.26 Cr recorded from the sale of Land & Building during the quarter.
- Approved reversal of ₹16.60 million (₹1.66 Cr) interest receivable from wholly-owned subsidiaries in the USA and Brazil.
- Initiated voluntary winding up of Kenya and Australia subsidiaries, inoperative for 5 and 6 years respectively.
- Kenya subsidiary contributed only 0.42% (₹7.51 million) to the company's total net worth as of March 2026.
Elgi Rubber Company reported a consolidated net profit of Rs 40.85 Cr for Q1 FY27, a sharp turnaround from a loss of Rs 204 Cr in the previous quarter. This profit was primarily driven by an exceptional gain of Rs 43.26 Cr from the sale of land and buildings, while core operational profit before tax and exceptional items stood at a modest Rs 1.24 Cr. The board also approved reversing Rs 1.66 Cr in interest receivables from US and Brazil subsidiaries to improve their financial health and initiated the winding up of dormant subsidiaries in Kenya and Australia.
- Reported a consolidated PAT of Rs 40.85 Cr in Q1 FY27, compared to a loss of Rs 2.04 Cr in Q1 FY26.
- Recognized a significant exceptional gain of Rs 43.26 Cr from the sale of land and buildings during the quarter.
- Reversed interest receivables totaling Rs 1.66 Cr from subsidiaries in the USA (Rs 0.21 Cr) and Brazil (Rs 1.45 Cr).
- Initiated voluntary winding up of dormant subsidiaries in Kenya and Australia; Kenya unit had a net worth of Rs 0.75 Cr (0.42% of total).
- Consolidated revenue for the quarter was Rs 94.15 Cr, representing approximately 25.7% of TTM revenue.
Elgi Rubber Company has issued a notice for its 20th Annual General Meeting (AGM) on August 27, 2026. Key agenda items include the re-appointment of Sudarsan Varadaraj as CMD and Harsha Varadaraj as WTD for five-year terms. Both are proposed to receive a monthly salary of ₹5,00,000 each for the first three years, which will be paid as minimum remuneration despite the company's FY26 net loss of ₹241 crore. The CMD holds a significant 47.09% stake in the company, ensuring strong promoter alignment despite recent financial stress.
- Proposed monthly salary of ₹5,00,000 each for the CMD and WTD starting from their respective re-appointment dates in late 2026/early 2027.
- CMD Sudarsan Varadaraj holds 2,35,67,500 shares, representing 47.09% of the total equity.
- Remuneration for FY26 was ₹7.75 million for the CMD and ₹2.77 million for the WTD.
- The company reported a substantial net loss of ₹241 crore in FY26, primarily due to a ₹204 crore loss in the March 2026 quarter.
- The re-appointments are for a 5-year tenure, with the salary fixed for the first 3 years.
Elgi Rubber Company Limited has scheduled its 20th Annual General Meeting (AGM) for August 27, 2026, to be held via video conferencing. The company has dispatched physical letters to shareholders who have not registered their email addresses, providing the direct web-link to the FY 2025-26 Annual Report. This administrative step follows a difficult financial year where the company reported a TTM net loss of ‑₹241 Cr on revenue of ₹366 Cr. The filing also serves as a reminder for shareholders to update KYC details and dematerialize physical holdings as per SEBI mandates.
- 20th Annual General Meeting scheduled for August 27, 2026, at 10:00 AM IST
- Cut-off date for identifying shareholders for dispatch was July 24, 2026
- Annual Report covers the financial year 2025-26, a period with ‑₹241 Cr net loss
- Mandatory KYC update reminder included for physical security holders as per SEBI circulars
Elgi Rubber Company has entered into an agreement to sell 1.07 acres of land and buildings in Hyderabad for a total consideration of Rs 12.00 Cr. The company has already received an advance of Rs 4.00 Cr from the buyer, Vega Elite LLP, an unrelated third party. This transaction, representing approximately 5% of the company's market capitalization, is part of a non-core asset disposal strategy approved by shareholders in October 2023. The sale is expected to be completed by September 30, 2026, providing a necessary liquidity boost given the company's recent heavy losses.
- Total sale consideration of Rs 12.00 Cr for 1.07 acres of land and buildings
- Advance payment of Rs 4.00 Cr already received by the company
- Transaction expected to be completed on or before September 30, 2026
- Property admeasures 5213.40 Sq. Yards (approx. 4359.03 Sq. Mtrs) in Auto Nagar, Hyderabad
- Sale proceeds represent approximately 6.1% of the company's current net worth of Rs 195 Cr
Elgi Rubber Company Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the period ended June 30, 2026. The document confirms that the Registrar and Share Transfer Agent, MUFG Intime India Private Limited, has processed and cancelled share certificates received for dematerialization within the prescribed timelines. This is a standard administrative filing required for all listed entities to maintain the integrity of electronic shareholding records. Financially, the company remains in a challenging position with a TTM PAT of Rs -241 Cr and a debt-to-equity ratio of 0.97.
- Compliance certificate issued for the quarter ended June 30, 2026
- Registrar MUFG Intime India Private Limited confirmed processing of dematerialization requests
- Company reported a TTM revenue of Rs 366 Cr against a significant TTM loss of Rs 241 Cr
- Promoter holding remains stable at 65.03% as of March 2026
Elgi Rubber Company Limited has successfully completed the sale of a non-core land asset in Coimbatore for a total consideration of Rs 43.50 crore. The property sold comprises approximately 0.75 acres (75 cents and 37 sq.ft) including buildings and fixtures, which is part of a larger 7.24-acre land parcel owned by the company. The transaction was executed with an unrelated third-party buyer, Mr. S. Senthilnathan, following shareholder approval obtained in May 2023. This move is part of the company's strategy to monetize non-core assets and will significantly boost its liquidity position.
- Total cash consideration of Rs 43.50 crore received for the sale of land and buildings.
- The sale involves 75 cents and 37 sq.ft of land out of a total extent of 7.24 acres on Trichy Road, Coimbatore.
- The transaction is with an unrelated third party and does not fall under related party transactions.
- Sale completed on June 25, 2026, pursuant to a special resolution passed by shareholders on May 5, 2023.
Elgi Rubber Company Limited has announced the closure of its trading window for all designated persons and their relatives starting July 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the results are officially declared. This is a standard regulatory procedure and does not indicate any change in company fundamentals.
- Trading window closure begins on Wednesday, July 1, 2026
- Closure is related to the unaudited financial results for the quarter ending June 30, 2026
- Window will reopen 48 hours after the board meeting results are announced
- Restriction applies to all designated persons and their immediate relatives
Financial Performance
Revenue Growth by Segment
Consolidated revenue declined 0.65% YoY to INR 383.92 Cr in FY25 from INR 386.45 Cr in FY24. Standalone revenue grew 7.21% YoY to INR 227.22 Cr from INR 211.93 Cr, driven by domestic demand despite consolidated operational disruptions.
Geographic Revenue Split
The company operates in India (Tamil Nadu and Kerala) and internationally through subsidiaries in the USA, Netherlands, Brazil, Kenya, Sri Lanka, Bangladesh, and Australia. Specific regional percentage splits are not disclosed in available documents.
Profitability Margins
Consolidated PAT margin turned negative at -1.09% in FY25 compared to 2.85% in FY24. Standalone net profit margin fell from 6.64% to 1.87%, a decline of 128.16% due to elevated manufacturing costs and operational disruptions.
EBITDA Margin
Consolidated EBITDA margin contracted significantly from 5.45% in FY24 to 1.17% in FY25, representing a 78.5% decline in core profitability. Standalone operating profit margin fell from 21.63% to 10.79% (-56.05% YoY).
Capital Expenditure
The company invested in a new state-of-the-art manufacturing facility at Sriperumbudur, Tamil Nadu. While specific INR Cr for the project is not disclosed, the facility is expected to drive growth from FY26 onwards.
Credit Rating & Borrowing
Short-term rating upgraded to IVR A4+ (IVR A Four Plus) and long-term rating assigned IVR BBB- with a Stable outlook. The group faces debt servicing obligations of INR 43.13 Cr to INR 16.67 Cr during FY26-FY28.
Operational Drivers
Raw Materials
Key raw materials include rubber and crude oil-based derivatives used in rubber processing and tyre retreading. These inputs are subject to high price volatility linked to global crude oil trends.
Capacity Expansion
Current operations include 6 manufacturing units across Tamil Nadu and Kerala. Planned expansion focuses on the full-fledged commencement of the new Sriperumbudur facility to enhance capacity utilization.
Raw Material Costs
Profitability is highly susceptible to raw material price volatility. Although the company uses price escalation clauses to pass on costs, sudden spikes in crude-linked inputs pressured FY25 margins.
Manufacturing Efficiency
FY25 witnessed a temporary decline in efficiency due to operational disruptions at new facilities. Capacity utilization is expected to improve steadily over FY26–FY28.
Strategic Growth
Growth Strategy
Growth will be achieved through the full-fledged commencement of the Sriperumbudur facility, which is expected to generate gross cash accruals of INR 44.00 Cr to INR 50.00 Cr between FY26-FY28. Strategy includes enhancing capacity utilization, operational stabilization, and leveraging a global franchise network.
Products & Services
Reclaim rubber, tread rubber, bonding gum, and other rubber products for the tyre sector, alongside retreading services provided through a franchisee network.
Brand Portfolio
Elgi Rubber, Pincott International (Australia), Rubber Resources (Netherlands).
Market Expansion
Focusing on strengthening the domestic retreading market and leveraging existing international subsidiaries in the US, Brazil, and Europe.
Strategic Alliances
The company operates through a broad franchise network for its retreading services and maintains 7 wholly-owned subsidiaries globally.
External Factors
Industry Trends
The retreading industry is growing as fleet operators prioritize sustainability and cost efficiency. The Indian commercial vehicle segment is projected to grow steadily, supporting long-term demand.
Competitive Landscape
The company holds a strong competitive position in both domestic and international markets, supported by an experienced promoter group led by Sudarsan Varadaraj.
Competitive Moat
Moat is built on integrated capabilities from raw materials to technical services, a strong global network with local presence, and a long operating track record since 2006.
Macro Economic Sensitivity
Highly sensitive to the commercial vehicle segment and infrastructure development, which drive demand for retreading services.
Consumer Behavior
Fleet operators are shifting toward retreading to reduce operational costs and meet sustainability goals.
Geopolitical Risks
Global operations in regions like Brazil, Kenya, and Sri Lanka expose the company to local regulatory changes and trade barriers.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013, SEBI Listing Regulations, and environmental norms for rubber manufacturing. The company maintains a compliance system for quarterly reporting.
Legal Contingencies
The Secretarial Audit Report for FY25 noted compliance with statutory provisions; no specific high-value pending court cases or labor disputes were quantified in the provided documents.
Risk Analysis
Key Uncertainties
Key risks include raw material price volatility (crude oil), supply chain disruptions, and the successful stabilization of the new manufacturing facility.
Geographic Concentration Risk
Revenue is diversified across India and 7 international locations, reducing single-country risk.
Third Party Dependencies
The company relies on a franchisee network for retreading services and various global suppliers for raw materials.
Technology Obsolescence Risk
The company is mitigating technology risks by investing in a 'state-of-the-art' manufacturing facility at Sriperumbudur.
Credit & Counterparty Risk
Working-capital-intensive operations with a standalone debtors turnover of 4.42; consolidated liquidity is considered adequate with projected cash accruals covering debt obligations.
