JK Tyre & Industries, one of India’s leading tyre manufacturers, reported a 71.3% decline in consolidated net profit to ₹65.11 crore in the second quarter of FY27, compared with ₹226.89 crore in the corresponding quarter last year, despite a 20.7% increase in revenue.
Revenue from operations rose to ₹4,840.73 crore in the July-September quarter from ₹4,011.31 crore a year earlier, reflecting strong sales growth across markets and product segments.
The sharp decline in profit came despite an improvement in operating performance on a sequential basis, with consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rising 28% quarter-on-quarter to ₹343 crore.
The company said persistently high input costs and supply chain constraints, including container freight rates significantly above historical levels, continued to pose challenges. Geopolitical tensions in West Asia have also made the operating environment difficult.
Domestic sales gain momentum
JK Tyre said its domestic business gained momentum following the implementation of GST 2.0, with original equipment (OE) market demand increasing 65% and domestic sales growing 32% year-on-year.
“JK Tyre’s strong performance in Q2FY27 demonstrates remarkable progress towards our zeal to be amongst the most profitable tyre companies in India, achieving highest-ever consolidated revenue of ₹4,850 crore, registering a robust growth of 20% on a year-on-year basis. This performance was broad-based across markets and product segments,” said JK Tyre & Industries Chairman and Managing Director, Raghupati Singhania.
He attributed the growth to disciplined execution across markets and product segments.
Mexican subsidiary rebounds
JK Tornel, the company’s Mexican subsidiary, recorded revenue of ₹479 crore during the quarter, rebounding from its earlier performance and reinforcing its strategic importance to JK Tyre’s international growth plans.
The company is banking on healthy customer traction across segments to sustain demand in the coming quarters.
“Looking ahead, we remain optimistic on the demand backed by healthy customer traction visible across segments and we continue to remain focused on delivering sustainable and profitable growth by leveraging our technologically advanced manufacturing facilities, pan India service network for fleets, wide international presence and strong customer partnerships,” Singhania said.
JK Tyre said its research and development capabilities, innovative product portfolio and focus on sustainability position it to capitalise on the emerging mobility transition.