Innovative Tyres & Tubes Limited (ITTL)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Innovative Tyres' revenue was ₹47.3 Cr (+73.3% year on year), and net profit ₹-0.2 Cr (a smaller loss than a year earlier); the operating margin was 5.5%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹47.3 | +73.3% | — |
| Operating profit | ₹2.6 | from loss | — |
| Net profit | ₹-0.2 | loss narrowed | — |
| EPS (₹) | -0.17 | loss narrowed | — |
| Operating margin | 5.5% | — | — |
📢 Recent Corporate Announcements
Innovative Tyres & Tubes Limited has released its Annual Report for FY25-26 and scheduled its 31st AGM for September 28, 2026. Key disclosures include the capitalization of its Conveyor Belt Project totaling ₹1,637.82 lakhs (₹16.38 Cr) upon completion. The company also confirmed the sale of its Tubes division for ₹703.00 lakhs (with ₹694.84 lakhs received as advance), discontinuing tube operations w.e.f. October 1, 2025. Furthermore, ITTL noted an ongoing exchange notice regarding non-compliance with Minimum Public Shareholding (MPS) rules given promoter holding at 94.55%.
- 31st Annual General Meeting scheduled for Monday, September 28, 2026 at 11:00 AM IST via VC/OAVM
- Capitalized Conveyor Belt Project worth INR 1,637.82 lakhs upon completion during FY26
- Discontinued Tubes division operations from October 1, 2025, post agreement to sell for Rs. 703.00 lakhs
- Received Rs. 694.84 lakhs as long-term advances against the Tubes division sale
- Received stock exchange notice dated November 11, 2025 regarding non-compliance with Regulation 38 Minimum Public Shareholding
Innovative Tyres & Tubes Limited has received a Show Cause-cum-Demand Notice from the Commissionerate of Central GST and Central Excise, Vadodara-II, under Sections 74/74A read with Section 122 of the CGST Act, 2017. The department alleges short payment and evasion of GST via undervaluation of tyres and collecting differential amounts in cash based on search findings. While the company stated the demand is quantifiable, the exact amount was not disclosed in the filing, and management has challenged the computation as ad-hoc and disproportionate to its historical turnover (TTM revenue of ₹108 Cr).
- Received Show Cause Notice under Sections 74/74A read with Section 122 of the CGST Act, 2017 from Vadodara-II Commissionerate.
- Notice alleges undervaluation of tyres and differential cash collection following departmental search/investigation.
- Exact tax demand amount was not disclosed; company claims computation is ad-hoc and not commensurate with turnover.
- Company is examining the matter to formulate an appropriate legal response and challenge the demand.
Innovative Tyres & Tubes Limited has appointed Mr. Jugal Patel as Company Secretary and Compliance Officer, effective August 19, 2026. The appointment fills a mandatory statutory compliance and corporate governance role following the company's emergence from the CIRP process. Mr. Patel holds no shares in the company and is not related to any directors or Key Managerial Personnel (KMPs).
- Appointment of Mr. Jugal Patel as Company Secretary & Compliance Officer effective August 19, 2026
- Date of birth of the appointee is December 26, 2003
- Appointee holds 0 shares in the company
- Will serve on the Audit Committee, Stakeholder Grievances Committee, and Nomination & Remuneration Committee
Innovative Tyres & Tubes Limited announced the outcome of its Board meeting held on August 19, 2026. The Board approved the draft Directors' Report and notice for the upcoming Annual General Meeting for FY 2025-26. Additionally, Mr. Jugal Patel was appointed as Company Secretary and Compliance Officer effective August 19, 2026. The Board also noted the cessation of Independent Director Mr. Kundan Kumar Mishra following his demise on May 31, 2026.
- Appointed Mr. Jugal Patel (Membership No. 80766) as Company Secretary and Compliance Officer effective August 19, 2026
- Noted the cessation of Independent Director Mr. Kundan Kumar Mishra due to demise on May 31, 2026
- Approved draft Directors' Report and AGM notice for the financial year 2025-26
- Reviewed the Internal Audit Report issued by M/s. Khode & Associates (FRN No. 144717W)
Financial Performance
Revenue Growth by Segment
The company operates in a single segment (Automotive Tyres and Tubes) which reported a total turnover of INR 47.19 Cr for FY 2024-25. However, sales volume declined by 97% compared to the previous year due to the impact of the Corporate Insolvency Resolution Process (CIRP) and inadequate working capital.
Geographic Revenue Split
Primarily domestic; however, the company reported export sales of INR 69.24 Lacs (approximately 1.47% of total turnover) which are currently under regulatory scrutiny for non-realization within 9 months.
Profitability Margins
The company reported a Net Profit Ratio of -0.34% for FY 2024-25, which is an improvement from -1.14% in FY 2023-24. Despite the improvement in ratio, the company incurred a significant net loss of INR 16.02 Cr.
EBITDA Margin
The Return on Capital Employed (ROCE) improved to 2.43% in FY 2024-25 from -1.04% in the previous year, indicating a slight recovery in core operational efficiency despite the overall net loss.
Capital Expenditure
Planned capital expansion documents remained unexecuted during the year due to the absence of planned production and financial constraints. Specific INR values for future Capex are not disclosed in the available documents.
Credit Rating & Borrowing
Credit ratings are not disclosed, but the company exhibits severe financial stress with a Debt-Equity Ratio of -0.86 (due to negative net worth of INR 16.29 Cr) and a negative Debt Service Coverage Ratio of -3.41.
Operational Drivers
Raw Materials
The company processes materials for Automotive Tyres and Tubes, primarily rubber and chemical compounds. Specific percentage breakdowns per material are not disclosed, but input cost volatility is cited as a primary risk.
Key Suppliers
Not specifically disclosed; however, the company has significant trade payables of INR 71.44 Cr (total liabilities) and is struggling with vendor reconciliations.
Capacity Expansion
Current capacity is underutilized due to a 2-year CIRP period and inadequate working capital. The new management is targeting a boost in capacity utilization but has not provided specific MTPA targets.
Raw Material Costs
Purchases declined by 54% YoY in FY 2024-25, reflecting reduced production activity. Input costs are highly sensitive to global commodity price fluctuations.
Manufacturing Efficiency
Manufacturing efficiency was severely hampered by the CIRP process; however, the company has restarted production and exports under new management.
Strategic Growth
Growth Strategy
The strategy focuses on streamlining business activities post-CIRP, optimizing costs, and boosting capacity utilization. The company aims to leverage government relaxations and 'ease of doing business' initiatives to accelerate revenue.
Products & Services
Automotive Tyres and Tubes for various vehicle segments.
Brand Portfolio
Innovative Tyres & Tubes.
Market Expansion
The company has restarted export operations, with an initial realization of INR 69.24 Lacs, though currently facing regulatory delays in payment realization.
Strategic Alliances
The company has ongoing related party transactions for sales and purchases with Ten on Ten Rubtech Pvt Ltd, TOT Tyres Pvt Ltd, and Ten on Ten International Pvt. Ltd.
External Factors
Industry Trends
The industry is seeing a shift toward evolving environmental standards and regulatory changes. The company is currently positioned in a recovery phase following insolvency.
Competitive Landscape
Faces intense competition from both domestic tyre majors and global players, which limits pricing flexibility.
Competitive Moat
No significant moat identified; the company is currently focused on operational survival and stabilizing its negative net worth of INR 16.29 Cr.
Macro Economic Sensitivity
Highly sensitive to the automobile sector's cyclicality and GDP growth, which dictates freight and passenger movement demand.
Consumer Behavior
Demand is driven by vehicle production and the replacement tyre market.
Geopolitical Risks
International instability is cited as the reason for the 'stuck up' export proceeds of INR 69.24 Lacs from overseas customers.
Regulatory & Governance
Industry Regulations
Non-compliance with FEMA Regulation 9(1) due to failure to realize export proceeds within 9 months. Contravention of Section 73 of the Companies Act, 2013, regarding unappropriated advances of INR 49.27 Lacs held for over 365 days.
Taxation Policy Impact
The company has a GST ITC mismatch of INR 28.98 Lacs where credit was reversed in books but not on the GST portal.
Legal Contingencies
The company recently emerged from the NCLT process (CIRP). It faces potential penalties for FEMA non-compliance and Section 73 violations mentioned in the audit qualifications.
Risk Analysis
Key Uncertainties
The primary uncertainty is the ability of the new management to stabilize operations post-CIRP. The company has a negative net worth of INR 16.29 Cr and a 97% decline in sales.
Geographic Concentration Risk
Heavily concentrated in the domestic Indian market, with a small, problematic export component (1.47% of revenue).
Third Party Dependencies
High dependency on a few major debtors and creditors for whom balance confirmations (INR values not specified) are currently unavailable.
Technology Obsolescence Risk
The company needs to monitor evolving environmental standards to avoid product obsolescence.
Credit & Counterparty Risk
High risk; major debtors have not provided balance confirmations, and export proceeds from one party are overdue by >9 months.
