JK Tyre’s Profit in June Quarter Down by 26.9%

New Delhi, August 8, 2025 – JK Tyre & Industries Ltd. has announced its results for the first quarter of FY26. Profitability fell sharply on a year-over-year basis as revenues were only slightly up. Consolidated net profit fell to ₹154.83 crore compared to ₹211.74 crore in Q1 FY25. However, the cost of materials increased, and the lower tax credit impacted net profit. Its profit in the June quarter came down y-o-y by 26.9%.

As of 2:15 PM IST, 8 August 2025, JK Tyre shares are currently trading at ₹335.40, up 3.39%. The share opened at ₹325.25, which is above the previous close of ₹324.40. The stock reached an intraday low of ₹318.65 and an intraday high of ₹335.60 during the session. The stock continues to trade above the 52-week low of ₹243.00 and the 52-week high of ₹453.00.

Year-on-Year Consolidated Financial Performance

Consolidated revenue from operations increased 6.3% to ₹3,869 crore YoY in Q1 FY26, driven by strong domestic demand and healthy export growth in passenger car tyres. However, profit before tax declined 28.3% to ₹208.07 crore, with PAT declining 26.9% to ₹154.83 crore and EPS falling 21.9% to ₹6.03.

From a geographical perspective, the Indian operations contributed ₹3,453.42 crore (up 5.5%), and the Mexican operations contributed ₹505.34 crore (up 7.3%); pressure on margins and sub-optimal operating performance negated topline growth.

Standalone YoY Performance

The company’s standalone Q1 FY26 financial performance shows a solid level of growth, with revenue from operations increasing 15.5% YoY to ₹2,877.19 crore. Profit before tax rose 17.5% to ₹227.40 crore, while PAT increased 18.8% to ₹170.08 crore. The EPS improved to ₹6.21, an 18.7% increase from ₹5.23 in Q1 FY25, reflecting healthy operational growth momentum.

Management Commentary

Dr. Raghupati Singhania, Chairman & MD, said:

“The growth momentum in domestic markets remained robust in Q1, with sales rising 11% YoY, supported by demand in both replacement and OEM segments. Exports of passenger car tyres gained strong traction, reflecting the growing acceptance of JK Tyre products in global markets.”

He added that while raw material cost pressures weighed down profitability, operational efficiencies and strategic pricing improved margins.

About JK Tyre & Industries Ltd

JK Tyre is part of JK Organisation and is one of the world’s largest 20 tyre makers as well as the market leader in the truck and bus radial segment in India. JK Tyre operates 11 manufacturing plants (9 in India and 2 in Mexico) with a total annual capacity of more than (> 35 million tyres), and a dealer network in over 100 countries globally.

REF: https://nsearchives.nseindia.com/corporate/JKTYRE_08082025123427_results.pdf

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