MRF Q1 FY 2026-27 Results: EBITDA Falls 7.5%, Margin Contracts To 11.77%
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MRF Q1 FY 2026-27 Results: MRF reported a 9.6% growth in its topline during the June quarter to ₹8,415.5 crore, compared to ₹7,675.6 crore during the year-ago quarter, even as EBITDA fell 7.5% to ₹990.6 crore and margin contracted to 11.77% from 13.95%.
MRF Q1 FY 2026-27 Results: Tyre manufacturer MRF Ltd reported its financial results for the quarter ended June 30, 2026, on Tuesday, August 11.
Consolidated net profit declined 1.3% year-on-year to Rs 495.35 crore, compared with Rs 501.82 crore in the corresponding quarter last year, as higher input costs weighed on profitability. Profit before tax fell 3.3% to Rs 649.69 crore from Rs 671.83 crore, after a tax provision of Rs 154.34 crore during the quarter.
Revenue from operations rose 9.6% year-on-year to Rs 8,415.50 crore, compared with Rs 7,675.64 crore in the year-ago period. Total income, including other income of Rs 195.06 crore against Rs 128.59 crore a year earlier, rose 10.3% to Rs 8,610.56 crore.
EBITDA fell 7.46% year-on-year to Rs 990.63 crore, compared with Rs 1,070.43 crore in the year-ago quarter. EBITDA margin contracted by 218 basis points to 11.77% from 13.95% a year earlier.
Business Performance
Total expenses rose 11.6% year-on-year to Rs 7,960.87 crore from Rs 7,132.40 crore, with the cost of materials consumed climbing to Rs 5,854.23 crore from Rs 4,622.99 crore. Employee benefits expenses rose to Rs 499.87 crore from Rs 477.67 crore, while depreciation and amortisation stood at Rs 447.67 crore against Rs 428.78 crore a year earlier. Finance costs eased to Rs 88.33 crore from Rs 98.41 crore in the year-ago period.
The quarter marked a reversal from the preceding March quarter, when the company had reported EBITDA of Rs 1,263 crore and a margin of around 16%.
Separately, total comprehensive income attributable to owners of the company stood at Rs 479.25 crore for the quarter, against Rs 512.67 crore a year earlier, a figure distinct from consolidated net profit that reflects other comprehensive income items recorded during the period.
Management Commentary
MRF said demand for its products remained healthy during the quarter, with vehicle sales across segments supporting strong OEM demand, while replacement sales also stayed robust. The company said raw material prices remained firm due to the ongoing conflict in the Middle East, and it expects this impact on margins to continue.
To offset the rise in input costs, MRF said it has taken price increases and implemented cost management measures, which helped partially cushion the impact. The company added that the cost environment is expected to remain a key factor for margins in the coming quarters, particularly with raw material prices staying firm.
MRF's board approved the appointment of two senior management personnel with effect from August 11. Prasanth Puliakottu, Senior General Manager - ITS, has been designated head of the Information Technology Services function, while Santhosh Mathew, Senior General Manager - HRS, has been designated head of the Human Resources & Services function.
MRF Share Price
Shares of MRF pared some losses to trade at Rs 1,31,125, down Rs 2,725 or 2.04%, as the market closed for the day.
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 has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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