Tyre major MRF Ltd reported a consolidated net profit of ₹495.35 crore for Q1FY27, marginally lower by 1.3% from ₹501.82 crore in the year-ago quarter, as higher input costs offset the benefit of strong demand.
Consolidated total income, however, rose 10.3% year-on-year to ₹8,610.56 crore for the quarter ended June 30, 2026, from ₹7,804.23 crore in Q1FY26.
The company’s profit before tax (PBT) stood at ₹649.69 crore, compared with ₹671.83 crore in the corresponding quarter of the previous year, marking a decline of around 3.3%.
Demand remains resilient
MRF said it delivered a resilient operating performance during the quarter, supported by healthy demand across its product segments.
Demand from original equipment manufacturers (OEMs) remained buoyant as vehicle sales across segments recorded strong growth. Replacement sales also remained healthy, with demand continuing to be robust.
However, higher input costs weighed on profitability during the quarter.
The company said raw material prices continued to remain firm amid the ongoing conflict in the Middle East, with the impact of elevated costs on margins expected to continue.
Price hikes, cost measures offer support
MRF has implemented price increases and undertaken cost-management measures during the quarter to partially offset the increase in input costs.
Despite these measures, the pressure on margins remained, resulting in a decline in PBT and net profit even as revenue registered double-digit growth.
The company said it would continue to focus on managing costs while responding to market demand and the evolving input-cost environment.
MRF’s Q1 performance comes against the backdrop of strong vehicle sales and healthy replacement demand, providing support to tyre volumes. However, sustained firmness in raw material prices remains a key challenge for profitability going forward.
With demand conditions remaining favourable but input costs elevated, MRF’s ability to protect margins through pricing and operational efficiencies will remain critical in the coming quarters.