JK Tyre Q1 FY 2026-27 Results: Net Profit Plunges 73% To Rs 44 Crore, Margins Contract
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JK Tyre reported a sharp decline in June quarter profit as elevated raw material costs from the West Asia crisis weighed on margins, even as domestic volumes grew strongly.
JK Tyre Q1 FY 2026-27 Results: Tyre manufacturer JK Tyre & Industries Ltd reported its financial results for the quarter ended June 30, 2026, on Friday, August 7.
Consolidated net profit fell 73% year-on-year to Rs 44.09 crore, compared with Rs 163.35 crore in the corresponding quarter last year. The company had reported a one-time gain of Rs 11 crore during the quarter, against a gain of Rs 12.6 crore in the year-ago period.
Revenue from operations edged up 2% year-on-year to Rs 3,946.24 crore, compared with Rs 3,868.94 crore a year ago.
At the operating level, EBITDA declined 35.8% year-on-year to Rs 258.1 crore, compared with Rs 402 crore in the year-ago period. EBITDA margin consequently contracted to 6.54% from 10.39%.
Total expenses for the quarter stood higher at Rs 3,912.75 crore, compared with Rs 3,695.08 crore in the year-ago period. Cost of materials consumed rose significantly to Rs 3,036.51 crore from Rs 2,266.69 crore in the corresponding quarter last year.
Management Commentary
Commenting on the performance, Raghupati Singhania, Chairman and Managing Director of JK Tyre, said the company saw strong demand momentum across segments during the quarter, supported by a focus on customer centricity, product excellence and disciplined execution across markets.
He said domestic volumes grew 25% year-on-year during the quarter, with replacement volumes rising 12% and original equipment volumes increasing 42%. The company also saw an increasing contribution from higher-value-added products.
On the cost pressures, Singhania said the continuing West Asia crisis led to a sharp increase in raw material prices, which impacted gross and operating margins. He added that approximately 70% of tyre industry raw materials are petro-based, making the sector highly vulnerable to oil price movements.
Looking ahead, Singhania said JK Tyre remains confident of improving its performance in FY27, with a sharper focus on operating leverage, cost reductions and increasing the share of premium products. The company is targeting double-digit revenue growth and higher profitability through strategic expansion.
JK Tyre Share Price
Shares of JK Tyre & Industries fell over 5% after the earnings announcement, touching an intraday low of Rs 384.15 on the NSE, before trading down 5.76% at Rs 389.45.
Also Read - Paras Defence Q1 FY 2026-27 Results: Net Profit Rises 42.7% To Rs 21.22 Crore, Announces Dividend
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
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