Emerald Tyre Manufacturers Ltd. (ETML)
SME CapAuto stocks · SME cap · NSE
Emerald Tyre Manufacturers Ltd. (ETML) is a leading Indian manufacturer and exporter of Off-Highway and Industrial Tyres, headquartered in Chennai. Incorporated in 2002, it offers a comprehensive range including solid resilient, press-on bands, industrial pneumatic tyres, and wheel rims, serving material handling, mining, and agriculture sectors globally under the 'GRECKSTER' brand.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹113 Cr | NDF | +7.6% |
| EBITDA | ₹13 Cr | +0.0% | -13.3% |
| Operating margin | 11.0% | -200 bps | -300 bps |
| PAT | ₹3 Cr | NDF | -62.5% |
| PAT margin | 2.6% | -131 bps | -497 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Consolidated H1 FY26 revenues grew to ₹10,521.65 Lakhs (H1 FY25: ₹9,853.46 Lakhs). EBITDA increased to ₹1,867.53 Lakhs (H1 FY25: ₹1,627.03 Lakhs), with EBITDA Margin expanding to 17.15% (H1 FY25: 16.13%). PAT rose to ₹755.89 Lakhs (H1 FY25: ₹638.23 Lakhs), and PAT Margin improved to 6.94% (H1 FY25: 6.33%). However, EPS declined to ₹3.88 (H1 FY25: ₹4.40).
Despite revenue, EBITDA, and PAT growth in H1 FY26, the consolidated EPS declined significantly YoY, likely due to share capital increase (FY25 vs FY24). While the company is expanding capacity and global presence, this dilution raises questions about per-share value creation. Management's focus on expansion and market share needs to translate into improved EPS.
Off-Highway Tyre Market Growth
Global OTR tyre market forecasted CAGR of 4.7% (2024-2032) to USD 25.23 Billion. India OTR tyre market forecasted CAGR of 6.05% (2024-2033) to 20.9 Million Units.
Infrastructure Development
Rising demand from construction, mining, agriculture & ports, and infrastructure development in emerging economies are key growth drivers.
Global Expansion & OEM Relationships
Strong global presence across 6 continents with subsidiaries in Belgium and UAE. Recognized as a preferred OEM supplier and trusted export partner.
R&D and Innovation
Advanced R&D division, integrated testing facilities, and in-house mould & design capabilities drive product innovation and customization.
New Rubber Mixing Unit
New Rubber Mixing Unit underway as part of ongoing expansion plans.
Solid Tyre & Pneumatic Divisions Expansion
Expanding Solid Tyre and Industrial Pneumatic divisions are underway to become a top global player.
Off-Highway Tyre Segment Entry
Entered Off-Highway tyre segment with planned capex for high-growth market in 2024.
Global OTR Market Growth
Global Off-the-Road (OTR) Tyre Market is projected to grow at a CAGR of 4.7% from 2024 to 2032, driven by construction, mining, and agriculture.
India Infrastructure Push
Surge in construction & infrastructure development (highways, bridges, power grids) and growing agriculture mechanization in India.
Green Tyre Technology Focus
Growing focus on green tire technology, sustainable manufacturing, and eco-friendly solutions aligns with company's 'Green Tyre Revolution' commitment.
China + 1 Strategy
Opportunity from the 'China + 1' strategy, potentially diverting manufacturing and sourcing to other countries like India.
Raw Material Price Volatility
Volatility of raw materials pricing poses a threat to profitability and cost management.
Competition
Competition from China and Sri Lanka in the off-highway tyre segment.
Capacity Constraints
Existing capacity constraints are identified as a weakness, potentially limiting growth.
Delay in Expansion
Delay in expansion to meet increasing customer demand could lead to loss of market position.
Market & Economic Risks
Performance of Indian and international economies, industry competition, and ability to implement strategy are identified risks.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
H1 FY26 results represent a half-year period, making year-over-year comparison the most appropriate method to account for potential seasonality and provide a consistent view of performance trends.
Volume Growth (FY25 YoY)
Solid Resilient production increased to 4,872.16 MT in FY25 from 4,196.78 MT in FY24. Industrial Pneumatic production grew to 3,170.73 MT in FY25 from 3,040.95 MT in FY24.
Capacity Utilization (FY25)
Solid Resilient utilization was 82.30% (FY25 vs 70.89% FY24). Industrial Pneumatic utilization was 94.37% (FY25 vs 90.50% FY24). Press On was 75.19% (FY25 vs 67.88% FY24).
Exports
Company has a strong global presence, supplying across 6 continents with wholly-owned subsidiaries in Belgium and UAE. Recognized as a preferred OEM supplier and trusted export partner.
Cost of Materials Consumed (% of Revenue, H1 FY26 YoY)
Consolidated Cost of Materials Consumed as a percentage of revenue decreased to 54.47% in H1 FY26 from 57.73% in H1 FY25, indicating improved cost management or pass-through.
Top 5 Global Player Goal
Goal is to rank among the top 5 global players in the product segment through innovation, quality, and customer service.
Customer-Centric Mission
Mission to be a customer-centric organization, prioritizing customer needs and enhancing value for all stakeholders.
Scalable Growth Opportunity
Planned capacity expansion, new product development, and participation in global exhibitions are key to future growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated EPS | ₹3.88 (H1 FY26) | Monitor if EPS recovers and grows in line with revenue and profit, indicating effective capital deployment and value creation. |
| Capacity Utilization | Solid Resilient: 82.30% (FY25), Industrial Pneumatic: 94.37% (FY25) | Track utilization rates across product segments, especially for Industrial Pneumatic, to assess efficiency and need for new capacity. |
| Debt to Equity Ratio | 0.81x (FY25) | Monitor debt levels, especially with ongoing capacity expansion, to ensure financial leverage remains manageable. |
| EBITDA Margin | 17.15% (H1 FY26) | Watch for sustained or improved EBITDA margins, indicating effective cost management and pricing power amidst raw material volatility. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
27Bearishfull bear SMA stack · MACD − · near 52W low · sector -3.3pp vs Nifty (3M)
Technical chart
ETMLdaily · 1Y · AUTO-12.4%Daily technical trend read
NeutralTrend is undirectional — long-term trend down. RSI 48.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 48 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 41% off 52W high · 13% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 42 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 42 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 61.1%.
- Growth contributes 20/25 to the score.
- Valuation contributes 19/30 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 13th percentile of the scored universe and 6th percentile within Auto. Main check: balance sheet trust is weak at 39/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Only 1 years of positive FCF.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Auto: 6th pctile, median 74 · SME: 14th pctile, median 64
5 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸OPM spread across recent quarters is 3%.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸Debt/equity is 1.18.
- ▸Interest coverage is 1.9x.
- ▸ROCE trend is -2.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 15.40
- P/B
- 1.39
- EV/EBITDA
- 8.71
- Market Cap
- 160.00Cr
Profitability
- ROE
- 9.19%
- ROCE
- 12.30%
- ROA
- 3.50%
- Dividend Y
- 1.22%
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 37.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 12.00%
Balance Sheet
- Debt/Equity
- 1.18
- Interest Coverage
- 1.93×
- Altman Z
- 2.25
- Book Value
- 59.20
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 21.00 Cr
- EPS TTM
- 5.30
Shareholding
- Promoter Hold
- 50.31%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 14%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Auto, ranked by similarity
Peers
Business-comparable names in Auto, ranked by similarity
Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.