Matangi Rubber Limited IPO

01At a glance

What the company does — makes tyre flaps and tubes used in trucks, buses and heavy vehicles, rubber compound, and recently two- and three-wheeler tyres, at five plants: two in Selaqui, Uttarakhand, two in Bhind, Madhya Pradesh, and one in Gummidipoondi, Tamil Nadu (AP p.3, AP p.4).

Who pays it — tyre makers, for which it makes flaps under their logos or processes their material for a conversion charge; it names JK Tyre & Industries as a large OEM customer (AP p.3, AP p.4). The top five customers were 85.37% of revenue in the nine months to December 2025 (AP p.4).

Why it is raising money — ₹450.00 million to repay borrowings, ₹190.59 million for a rubber-recycling plant and ₹84.35 million for a solid-tyre plant, both at Bhind, and the rest for general purposes (AP p.6).

How fast it has grown — revenue from ₹863 million in FY23 to ₹1,013 million in FY25; profit from ₹27 million to ₹200 million (AP p.8).

The one thing to understand — profit quadrupled in FY25 on revenue up 12%, because material costs fell. The document attributes the drop to buying ready-made premix instead of mixing components in-house, and to lower rubber prices (AP p.8, DRHP p.351).

02The business, in plain words

A tyre flap is a rubber strip that sits between the tube and the rim in a truck tyre. Tyre companies outsource some of this work to makers like Matangi: either the maker buys its own rubber and supplies finished flaps with the customer's logo (contract manufacturing), or the tyre company supplies the rubber and pays a fee to convert it (job work).

A tyre company needs flaps for its truck tyres → it orders from Matangi → Matangi buys premix rubber, moulds the flaps with the customer's logo at Selaqui and ships them → it is paid per piece.

The company also makes tubes under its own brand and has started job work on two- and three-wheeler tyres (AP p.3, AP p.4). It has a long-term supply agreement with JK Tyre & Industries for raw materials; other materials are bought on the spot market (DRHP p.28).

Earnings equation: Profit ≈ pieces × (price − rubber premix and conversion cost). Material cost fell from about 67% of revenue in FY24 to about 44% in FY25 (our arithmetic, AP p.8, DRHP p.351).

03Where the money comes from

Source: AP p.3, AP p.4. Converted from ₹ lakh.

Contract-manufactured flaps fell from 96.57% of revenue in FY23 to 75.31% in the nine months to December 2025 as tube job work grew (AP p.3, AP p.4). Revenue comes from 15 states, with Uttarakhand the largest (AP p.4, AP p.9).

04The growth record

Source: AP p.8, DRHP p.357. Converted from ₹ lakh. FY23 and FY24 are standalone; later periods consolidated.

05What the growth is made of

Margin, not volume. Cost of materials consumed fell 26.24% in FY25, to ₹445.53 million, while revenue grew 12% (DRHP p.351). The document gives two reasons: a switch to buying ready-made premix, which it calls more cost-effective, and a fall in synthetic and natural rubber prices (DRHP p.351). The document lists raw-material price volatility among its main risks (AP p.9).

The industry section of the same document gives different figures for earlier years — EBITDA of ₹80.95 million in FY23 and profit of ₹34.14 million in FY23 and ₹45.57 million in FY24 — from those in the restated summary (DRHP p.187, AP p.8).

06Earnings quality

Operating cash flow was ₹27.10 million in the nine months to December 2025 against profit of ₹168.02 million (DRHP p.357). Depreciation was ₹0.75 million in the nine months, against ₹30.88 million in FY25, and FY25 profit included a ₹19.26 million gain on selling fixed assets and ₹16.27 million of balances written back (DRHP p.357). The auditors made no qualifications (AP p.11). The company reports delays in paying statutory dues (AP p.9).

07The balance sheet

Source: AP p.7, AP p.8. Converted from ₹ lakh.

Equity share capital rose from ₹34.30 million to ₹102.89 million in the nine months to December 2025 (AP p.7). The issue is made under Regulation 6(2) of the SEBI ICDR Regulations because the company does not meet Regulation 6(1)(b) (AP p.1).

08What the money is for

Source: AP p.6. Converted from ₹ lakh.

09Who is selling

Source: AP p.1.

10Promoters

The promoters are Radhika Gupta, joint managing director, associated with the company since inception; Mohit Gupta, managing director, since 2005; Manju Gupta, executive director, since 2004; and Vandana Rubber and Chemicals, a company incorporated in 1979 (AP p.5, AP p.6).

11Who already owns it

Source: AP p.6, AP p.7.

Promoters hold 81.11% (AP p.7).

12What changed just before the IPO

• Margins — EBITDA margin up from 11.52% to 30.49% in FY25 (AP p.8).
• Tubes — job-work tube revenue started in FY25 and grew to ₹144.42 million in nine months (AP p.4).
• Capital — share capital tripled in nine months (AP p.7).
• Borrowings — up from ₹295 million to ₹1,142 million since FY23 (AP p.8).

13Capacity and expansion

Five plants in three states (AP p.4). The proceeds fund a rubber-recycling plant and a solid-tyre plant, both new products, at Bhind (AP p.6). Capacity and utilisation were not read for this study.

14Market size and industry structure

The industry report cited in the offer document estimates the Indian tyre market at $12.17 billion in 2025 and projects about $24.55 billion by 2035 (AP p.5). Those projections are the report's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• A long relationship with tyre makers, including JK Tyre (AP p.4, DRHP p.28).
• Plants in three regions (AP p.4).

Against that: 85% of revenue from five customers, and margins tied to rubber prices (AP p.4, AP p.9).

16Peers the company named

Source: DRHP p.124. Converted from ₹ lakh. The document dates peer prices "May 21, 2025".

The peer table gives the company a return on net worth of 31.95% for FY25, while the KPI table gives return on equity of 23.52% (DRHP p.124, AP p.8). No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Customer concentration. Five customers were 85% of recent revenue (AP p.4).
• Rubber prices. The FY25 margin gain rests partly on lower rubber prices (DRHP p.351).
• Uttarakhand. A significant share of revenue (AP p.9).
• Fire. Rubber is combustible (AP p.9).
• Debt. Borrowings nearly quadrupled since FY23 (AP p.8).
• New products. Recycling and solid tyres are new businesses (AP p.6).

18Litigation and regulatory matters

Source: AP p.11. Converted from ₹ lakh.

19Related-party transactions

Not read in detail for this study. Vandana Rubber and Chemicals, a promoter, is a company (AP p.6).

20What the offer document does not say

In the sections read for this study, the document does not give:

• The names and shares of the five main customers, other than JK Tyre.
• Why depreciation nearly vanished in the nine months to December 2025.
• Why the industry section's FY23 and FY24 figures differ from the restated figures.
• Capacity and utilisation by plant, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What share of revenue comes from JK Tyre?
2. How much of the FY25 margin gain came from premix and how much from lower rubber prices?
3. Why was depreciation only ₹0.75 million in the nine months to December 2025?
4. Which fixed assets were sold in FY25, and to whom?
5. Who will be the customers for recycled rubber and solid tyres from the new Bhind plants?

2Sources and cited facts

This study was read from 2 documents the company filed. The 29 figures it cites are listed under the document each came from, with the page and the sentence as printed.