MRF to Review Q1FY26 Results on August 12; Share Price Falls 1.37% Despite Strong Growth in Previous Quarters

Mumbai, 31 July 2025: MRF Ltd (NSE: MRF, BSE: 500290) has confirmed that its Board of Directors will meet on Tuesday, August 12, 2025, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2025 (Q1FY26). The announcement comes on the back of MRF’s strong earnings momentum over the past year, with consistently high revenue and profit across four successive quarters. However, despite this solid financial foundation, the company’s stock witnessed a dip on the bourses today.

Q1FY26 Earnings Awaited After Q1FY25 Revenue Peaked at ₹7,16,058 Lakh and EPS Touched ₹1,326.41

In Q1FY25 (April-June 2024), MRF posted its strongest-ever quarterly performance with standalone revenue at ₹7,16,058 lakh. Net profit during the same period was ₹56,255 lakh, and Earnings Per Share stood at a peak of ₹1,326.41. While the company continued to demonstrate financial resilience in subsequent quarters, the June 2024 quarter remains its top-performing period in FY25.

For Q2FY25 (July-September 2024), revenue stood at ₹6,87,243 lakh, and profit was ₹45,543 lakh with EPS at ₹1,073.84. In Q3FY25 (October-December 2024), MRF earned ₹6,97,977 lakh in revenue and ₹30,672 lakh in net profit, translating to an EPS of ₹723.20. The March 2025 quarter (Q4FY25) also showed strong performance with ₹7,05,530 lakh in revenue and ₹49,785 lakh profit, pushing EPS to ₹1,173.86.

On a consolidated basis for the entire FY25, MRF reported a total income of ₹7,18,760 lakh, net profit of ₹51,211 lakh and an EPS of ₹1,207.48.

MRF Stock Declines ₹2,055 to Close at ₹1,47,970 as Investors Book Profits Ahead of Results

Following the announcement regarding the Q1FY26 results board meeting, MRF shares declined by ₹2,055 or 1.37% to close at ₹1,47,970 on 31 July 2025 at 3:05 PM IST. The stock opened at ₹1,49,050 and touched an intraday high of ₹1,49,495 before falling to a low of ₹1,47,200.

The profit-booking by investors appears to be driven by caution ahead of earnings amid expectations of continued margin pressure due to raw material dynamics. The current market capitalisation stands at ₹62.76K crore with a P/E ratio of 33.57. Despite today’s dip, the stock remains close to its 52-week high of ₹1,53,000.

MRF’s Financial Ratios Highlight Strong Operating Margins but Weak ROE and Net Profit Growth

MRF continues to hold strong positions in operating efficiency and institutional trust. The company’s operating profit margin for the latest quarter stood at 15.2%, among the highest in the tyre industry, while its trailing twelve-month (TTM) OPM was 14.5%. Revenue growth on a quarterly YoY basis was 11.4%, and operating revenue TTM growth stood at 11.9%, both of which were above industry medians. Institutional holding also saw an increase of 0.57% to reach 30.33%.

However, some metrics reflect areas of concern. Net profit YoY growth for the quarter was a robust 29.3%, but net profit TTM growth showed a negative trend at -10.2%. Return on Equity (ROE) and Return on Assets (RoA) remained below the industry median at 10.1% and 6.3% respectively. The Piotroski Score was moderate at 6, indicating average financial health. Relative returns for the quarter were 9.2% vs Nifty50 and 0.3% vs sector, reflecting stable but unspectacular performance.

MRF Outlook Hinges on Demand, Exports and Margin Stability Amid Tyre Sector Tailwinds

With the Q1FY26 earnings due on August 12, investor focus will be on whether MRF can sustain the growth trajectory seen through FY25. Analysts will closely watch commentary on export volumes, domestic OEM demand, and input cost dynamics, particularly rubber and crude derivatives, which significantly influence margins. The domestic automobile sector continues to offer tailwinds, and the outcome of the Q1FY26 results will likely set the tone for the company’s stock movement in the upcoming quarters.

MRF Ltd: India’s Largest Tyre Maker with Strong Brand Equity and Diverse Product Portfolio

Headquartered in Chennai, MRF Limited is India’s largest tyre manufacturer, producing tyres for passenger vehicles, commercial trucks, two-wheelers, farm equipment, and off-road machinery. The company is listed on both the NSE and BSE and is widely recognised for its conservative capital management, premium brand equity, and strong dealer network. MRF has remained a bellwether stock in the auto components segment and is closely tracked by institutional investors and mutual funds for its steady performance and dividend history.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/491cc47f-2a0b-4dfd-8495-13e9c1942510.pdf

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