JK Tyre & Industries Limited (JKTYRE)
₹338.40 +0.18% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, JK Tyre's revenue was ₹3,946 Cr (+2.0% year on year, -6.6% on the previous quarter), and net profit ₹44.1 Cr (-73.0% year on year); the operating margin was 6.5%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,946 | +2.0% | -6.6% |
| Operating profit | ₹258 | -35.8% | -51.9% |
| Net profit | ₹44.1 | -73.0% | -75.2% |
| EPS (₹) | 1.55 | -74.3% | -74.9% |
| Operating margin | 6.5% | — | — |
JKTYRE delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 40.0% of the JKTYRE shares traded on NSE were taken to delivery, against the stock's own 20-session average of 44.59%. That is close to its usual level.
Delivery in the last 5 sessions: 36.3% · 37.4% · 42.8% · 40.1% · 40.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
JK Tyre & Industries has received a Show Cause Notice from the GST Authority in Chennai demanding ₹94.86 crore for FY 2022-23 under Section 73 of the GST Act. The demand comprises ₹55.12 crore in tax, ₹34.23 crore in interest, and a penalty of ₹5.51 crore related to ITC mismatches, HSN classification, and employee recoveries. The total disputed amount represents approximately 14.5% of the company's TTM net profit of ₹652 crore. The company maintains that it has strong defensible positions and is preparing an adequate response within the due timeline.
- Total GST demand of ₹94.86 crore raised under Section 73 for FY 2022-23
- Demand includes ₹55.12 crore tax, ₹34.23 crore interest, and ₹5.51 crore penalty
- Notice issued by Deputy Commissioner (ST) III, GST, Large Taxpayers Unit, Chennai-35
- Issues relate to HSN/SAC code classification, ITC mismatches (GSTR 2A vs 3B), and deemed supplies
CARE Ratings Limited has reaffirmed JK Tyre & Industries Limited's credit ratings at 'CARE AA-; Stable' for long-term bank facilities and 'CARE A1+' for short-term facilities and commercial paper. The agency highlighted the company's leading position in the domestic Truck and Bus Radial (TBR) market and comfortable leverage profile. While PBILDT margins compressed to 6.5% in Q1 FY27 from 12.0% in FY26 due to raw material cost inflation (rubber and crude derivatives), CARE expects margins to recover from Q3 FY27 to 10.0%-11.0% for full-year FY27 as staggered price hikes take effect.
- CARE reaffirmed Long-Term bank facilities rating at 'CARE AA-; Stable'
- Short-Term facilities and Commercial Paper reaffirmed at 'CARE A1+'
- PBILDT margin moderated to 6.5% in Q1 FY27 vs 12.0% in FY26 due to input cost pressures
- Full-year FY27 PBILDT margin projected between 10.0% and 11.0% by CARE Ratings
- Margin recovery expected from Q3 FY27 onwards led by price hikes and premiumisation
JK Tyre reported a modest 2% YoY revenue growth to 3,956 crore for Q1 FY27, but profitability was severely hit by a 20% sequential surge in raw material costs. While domestic volumes grew strongly by 25% (led by a 42% jump in OEM sales), consolidated EBITDA margins contracted sharply to 6.8% from 10.9% a year ago. Net debt increased by 500 crore during the quarter to 4,945 crore, driven by higher working capital needs and ongoing capex. Management is banking on a 4,980 crore expansion plan at the Chennai plant and staggered price hikes to recover margins.
- Domestic volume growth reached 25% YoY, significantly outperforming the 2% revenue growth due to pricing lags and segment mix.
- Raw material costs spiked by approximately 20% compared to Q4 FY26, primarily due to natural rubber and crude-linked inputs.
- Consolidated EBITDA fell to 268 crore from 424 crore in the previous year's quarter, a 36.8% decline.
- Net debt rose to 4,945 crore as of June 30, 2026, representing a Net Debt/EBITDA ratio of 2.56x.
- The company reaffirmed a 4,980 crore capacity expansion for PCR and TBR segments at its Chennai plant.
JK Tyre & Industries has released the audio recording of its Q1 FY27 results conference call held on August 10, 2026. This follows the company's recent financial performance disclosure for the first quarter of the 2026-27 fiscal year. The recording provides management's perspective on the quarter's performance and is available on the company's investor relations website. This is a standard regulatory filing to ensure transparency for all stakeholders.
- Conference call conducted on August 10, 2026, at 4:00 PM IST
- Relates to the financial results for Quarter 1 of the 2026-27 financial year
- Filing made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015
- Recording link hosted on the company's official investor presentations page
JK Tyre has announced a significant phased capacity expansion plan with a board-approved outlay of Rs 4,980 crore, representing approximately 45% of its current market capitalization. This follows the successful commissioning of Rs 1,400 crore in PCR and TBR projects and an ongoing Rs 1,130 crore implementation for commercial tyres. For FY26, the company reported a 50% increase in PAT to Rs 774 crore, driven by an 11% revenue growth to Rs 16,384 crore and improved operating efficiencies. The turnaround of the Laksar plant, reaching 95% utilization from 30% at acquisition, highlights strong execution capability.
- Board approved a new phased capacity expansion investment of Rs 4,980 crore
- FY26 PAT increased by 50% to Rs 774 crore on consolidated revenue of Rs 16,384 crore
- Laksar Tyre Plant utilization ramped up to 95% from 30% at the time of acquisition
- Ongoing projects worth Rs 1,130 crore are currently under implementation for commercial tyres
- Carbon emission intensity reduced by 50% in FY26, meeting targets well ahead of 2030
JK Tyre & Industries Limited held its 73rd Annual General Meeting on August 6, 2026, where shareholders approved all six resolutions, including a dividend of Rs 4.00 per share for FY26. While all items passed with the requisite majority, there was significant institutional pushback on executive matters. Specifically, 61.98% of institutional votes were cast against the remuneration for Non-Executive Director Bharat Hari Singhania, and 47.17% were against the re-appointment of CMD Dr. Raghupati Singhania. The company maintains a TTM revenue of Rs 16,326 Cr and a PAT of Rs 772 Cr.
- Dividend of Rs 4.00 per equity share (200% of face value) approved for the financial year ended March 31, 2026.
- Dr. Raghupati Singhania re-appointed as Chairman & Managing Director for a 5-year term starting October 1, 2026.
- Significant institutional dissent recorded on Resolution 4 (remuneration) with 61.98% of institutional votes cast against.
- Institutional investors also showed high opposition (47.17% against) to the re-appointment of the CMD in Resolution 5.
- Total valid votes polled for the CMD re-appointment reached 22.19 Cr shares, representing 76.99% of total shares.
JK Tyre reported a weak Q1 FY27 with consolidated PAT falling 72% YoY to ₹43 Cr, despite a marginal 2% growth in total income to ₹3,956 Cr. Operating performance was significantly impacted as EBITDA margins compressed from 10.9% in Q1 FY26 to 6.8% in Q1 FY27, reflecting a 410 bps decline. On a sequential basis, the performance was even softer, with PAT dropping 77% from ₹188 Cr in Q4 FY26. The company continues to rely heavily on the replacement market, which contributed 61% of revenue in Q1 FY27.
- Consolidated PAT declined 72% YoY to ₹43 Cr in Q1 FY27 from ₹155 Cr in Q1 FY26
- EBITDA margins contracted sharply to 6.8% in Q1 FY27 compared to 12.9% in the preceding quarter
- Total Income for the quarter stood at ₹3,956 Cr, representing approximately 24% of TTM revenue
- Replacement market remains the primary revenue driver at 61%, followed by OEMs at 22% and Exports at 17%
- Maintained a combined installed capacity of 38 Mn+ tyres per annum across 11 manufacturing facilities
JK Tyre & Industries has approved an investment of Rs 1.38 Crore to acquire a 26% equity stake in STTY RE Banmore Ltd, a solar power developer. This acquisition is designed to qualify JK Tyre as a captive power user for a 6 MWp solar project, securing competitive electricity rates for a 25-year period. While the developer will fund the total project capex of approximately Rs 17.70 Crore, JK Tyre's involvement is limited to the equity requirement. The transaction is a related-party deal as the target is a promoter group constituent, but it has been cleared on an arm's length basis.
- Acquisition of 26% equity stake in STTY RE Banmore Ltd for Rs 1.38 Crore
- Enables access to a 6 MWp Solar Power Project under the captive power route
- Secures solar power at competitive market rates for a duration of 25 years
- Total project capex of Rs 17.70 Crore to be primarily met by the developer
- Target entity STTY RE Banmore reported a turnover of Nil for FY26
JK Tyre reported a resilient consolidated revenue of ₹3,946.24 Cr for Q1 FY27, a slight increase from ₹3,868.94 Cr YoY. However, Net Profit fell sharply by 73% to ₹44.09 Cr, primarily due to rising raw material costs and operational disruptions in its Mexico subsidiary. While domestic volumes grew by 25% (led by a 42% surge in OEM demand), margins were squeezed by high natural rubber and petro-based input prices. The Mexico segment reported a loss of ₹45.83 Cr compared to a profit of ₹30.18 Cr in the year-ago period.
- Consolidated Net Profit attributable to owners fell to ₹44.04 Cr from ₹163.46 Cr in Q1 FY26.
- Domestic volumes grew 25% YoY, with replacement market up 12% and OE markets up 42%.
- Mexico operations (JK Tornel) reported a segment loss of ₹45.83 Cr due to input constraints and labor negotiations.
- Consolidated EBITDA stood at ₹268 Cr, impacted by raw materials which constitute 70% of industry costs.
- Exceptional items included a ₹17.91 Cr foreign exchange gain and a ₹4.31 Cr VRS expense.
JK Tyre & Industries Limited concluded its 73rd Annual General Meeting on August 6, 2026, where shareholders approved a final dividend of Rs 4.00 per equity share (200% of face value). A significant leadership decision was the re-appointment of Dr. Raghupati Singhania as Chairman & Managing Director for a five-year term starting October 1, 2026. The meeting also formalized the adoption of FY26 financial statements, which showed a TTM revenue of Rs 16,326 Cr and a PAT of Rs 772 Cr. These proceedings ensure management continuity as the company targets a 10% growth rate through premiumisation and capacity expansion.
- Approved a final dividend of Rs 4.00 per equity share of Rs 2 each (200%) for the financial year ended March 31, 2026
- Re-appointed Dr. Raghupati Singhania as Chairman & Managing Director for a 5-year term effective October 1, 2026
- Adopted audited standalone and consolidated financial statements for FY26, reporting TTM PAT of Rs 771.63 Cr
- Approved remuneration for Shri Bharat Hari Singhania, Non-executive Director, for the financial year ending March 31, 2027
- Ratified the remuneration payable to Cost Auditors for the financial year 2026-27
JK Tyre & Industries has scheduled its Q1 FY2026-27 earnings conference call for August 10, 2026, at 4:00 PM IST. The call will be attended by top management, including the Managing Director and CFO, to discuss the company's quarterly performance. This follows a fiscal year (FY26) where the company achieved a revenue of ₹16,326 Cr and a PAT of ₹772 Cr. Investors will be looking for updates on the company's premiumisation strategy and the progress of its capacity expansions in the TBR and PCR segments.
- Conference call scheduled for August 10, 2026, at 4:00 PM IST to discuss Q1 FY27 results
- Management participation includes the Managing Director, CFO, and Director & President – International
- Company reported TTM revenue of ₹16,326 Cr and TTM PAT of ₹772 Cr as of FY26
- Operating Profit Margin (OPM) stood at 12.4% for the trailing twelve months
- Consolidated capacity utilization was reported at 88% in the preceding periods
JK Tyre & Industries Limited has received a communication from the Collector Stamps, Jaipur, waiving an interest amount of Rs 2 Crore. This follows a previous disclosure made on June 11, 2026, regarding proceedings under the Rajasthan Stamp Act, 1998. The waiver was officially communicated to the company on July 22, 2026. While the waiver is a positive development, the amount is immaterial compared to the company's TTM PAT of Rs 772 Crore.
- Interest waiver of Rs 2 Crore granted by the Collector Stamps, Jaipur
- Communication received by the company on July 22, 2026, at 3:30 P.M.
- Update to a previous regulatory filing dated June 11, 2026
- Waiver represents approximately 0.26% of the company's TTM PAT of Rs 772 Crore
JK Tyre has released its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, reporting a standalone turnover of Rs 14,668.99 crore. The company maintains a global footprint with 9 plants in India and 2 in Mexico, serving over 100 countries with exports contributing 11.93% of revenue. A key structural change is the completed amalgamation of Cavendish Industries Ltd, effective April 1, 2025, which now reflects in the merged entity's operational data. The report confirms zero data breaches and a 20% female representation on the Board of Directors.
- Standalone turnover for FY 2025-26 reached Rs 14,668.99 crore with a net worth of Rs 5,282.54 crore
- Exports accounted for 11.93% of the total entity turnover across 100+ countries
- Total workforce stands at 17,917 individuals, including 2,603 employees and 15,314 workers
- Female representation on the Board of Directors is 20% (2 out of 10 members)
- Zero instances of data breaches or customer privacy complaints were recorded in FY 2025-26
JK Tyre & Industries has fixed July 30, 2026, as the record date to determine shareholder eligibility for the final dividend of FY 2025-26. The dividend is subject to approval at the Annual General Meeting (AGM) scheduled for August 2026. Payment is expected to be processed within two weeks following the AGM. The company currently maintains a TTM PAT of ₹772 Cr and a ROCE of 19.0%.
- Record date for dividend eligibility fixed as July 30, 2026
- Dividend pertains to the financial year ended March 31, 2026
- Payment to be completed within 14 days of the AGM scheduled for August 2026
- Company reported TTM revenue of ₹16,326 Cr and TTM EPS of ₹27.57
JK Tyre & Industries has scheduled its 73rd Annual General Meeting (AGM) for August 6, 2026. The company has recommended a final dividend of ₹4 per equity share (200% of face value) for FY26, with July 30, 2026, set as the record date. Key resolutions include the re-appointment of Dr. Raghupati Singhania as Chairman & Managing Director for a five-year term starting October 1, 2026. Shareholders will also vote on a special resolution regarding the remuneration of non-executive director Shri Bharat Hari Singhania, which may exceed 50% of the total remuneration payable to all non-executive directors.
- Final dividend of ₹4 per equity share of ₹2 each (200%) recommended for FY26
- Record date for dividend entitlement fixed as July 30, 2026
- Proposed re-appointment of Dr. Raghupati Singhania as CMD for 5 years effective October 1, 2026
- Special resolution for Shri Bharat Hari Singhania's remuneration to potentially exceed 50% of total NED pool
- Cost Auditor remuneration for FY27 proposed at ₹3.50 Lakh
Financial Performance
Revenue Growth by Segment
Consolidated revenue for FY25 stood at INR 14,693 Cr, representing a 2.06% decline from INR 15,002 Cr in FY24. Standalone sales for FY25 were INR 10,063 Cr compared to INR 10,211 Cr in FY24. Despite market headwinds, the company reported Q2 FY26 revenue of INR 4,026 Cr, maintaining a trajectory toward double-digit growth.
Geographic Revenue Split
JK Tyre exports to over 100 countries. In Q2 FY26, export revenue grew by 10% sequentially (QoQ) despite tariff-related challenges. The Mexico subsidiary, JK Tornel, and domestic subsidiary Cavendish Industries contributed significantly to the consolidated financials, though specific regional percentage splits were not disclosed.
Profitability Margins
Profitability saw compression in FY25 with Consolidated Profit After Tax (PAT) at INR 806 Cr, a slight decrease from INR 811 Cr in FY24. PAT for Q2 FY26 stood at INR 223 Cr, a 54% increase YoY. The decline in FY25 was primarily due to the inability to fully pass on raw material price hikes in the commercial vehicle segment.
EBITDA Margin
Consolidated PBILDT margin moderated to 10.3% in FY25 from 14% in FY24, a decline of 370 bps. In Q1 FY26, the margin improved by 73 bps QoQ to 10.4%. Management expects a further 100-150 bps improvement in FY26 driven by premiumisation and stable rubber prices.
Capital Expenditure
Debt levels are expected to peak in FY26 as the company completes its planned capacity expansion for Truck and Bus Radial (TBR), Passenger Car Radial (PCR), and All Steel Light Truck Radial (ASLTR). While specific total project cost in INR Cr was not explicitly totaled, the company raised INR 500 Cr via QIP in Dec 2023 and INR 240 Cr via CCDs for expansion activities.
Credit Rating & Borrowing
CareEdge reaffirmed ratings at IND AA-/Stable for long-term and IND A1+ for short-term facilities. Net debt stood at INR 4,201 Cr as of September 30, 2025, up from INR 3,862 Cr in June 2025 due to increased working capital needs. Net Debt/PBILDT was 3.53x in FY25 compared to 2.40x in FY24.
Operational Drivers
Raw Materials
Key raw materials include natural rubber, which accounts for approximately 33.3% (one-third) of total raw material costs, and crude-linked derivatives such as carbon black and nylon cord.
Import Sources
Approximately 35-40% of raw material requirements are imported to meet production standards and volume needs, though specific country names were not disclosed in the provided text.
Capacity Expansion
The company is expanding capacities in TBR, PCR, and ASLTR segments, with completion expected by the end of FY26. Current consolidated capacity utilization was 88% in Q2 FY26, with radial capacity utilization exceeding 90%.
Raw Material Costs
Raw material price inflation, particularly in natural rubber, led to a 300+ bps decline in operating margins in FY25. The company uses a mix of inventory management and price hikes to manage these costs, though price pass-through was restricted in the CV segment post-elections.
Manufacturing Efficiency
Efficiency is driven by high capacity utilization (88% consolidated) and a focus on 'digital leadership' to optimize the mobility ecosystem. Operational efficiencies helped improve PBILDT from 9% in 2020 to 14% in FY24.
Logistics & Distribution
The company maintains a wide marketing and distribution network across India and exports to over 100 countries, though specific logistics costs as a % of revenue were not provided.
Strategic Growth
Expected Growth Rate
10%
Growth Strategy
Growth will be achieved through a double-digit revenue guidance driven by a 'premiumisation' strategy (increasing the share of high-margin products), the ramp-up of new margin-accretive capacities in H2 FY26 (TBR, PCR, ASLTR), and sustained marketing efforts in both domestic and international markets.
Products & Services
Truck and Bus Radial (TBR) tyres, Passenger Car Radial (PCR) tyres, All Steel Light Truck Radial (ASLTR) tyres, and Commercial Vehicle (CV) tyres.
Brand Portfolio
JK Tyre, Cavendish, and JK Tornel (Mexico).
New Products/Services
Focus on margin-accretive new capacities in ASLTR and premium PCR segments; specific revenue contribution % for new launches was not disclosed.
Market Expansion
Expansion of the premium portfolio and increasing market share in the passenger tyre segment. The Mexico subsidiary (JK Tornel) is a key pillar for international growth.
Market Share & Ranking
JK Tyre holds a leadership position in the domestic Truck and Bus Radial (TBR) segment.
Strategic Alliances
The company is undergoing a scheme of amalgamation with its subsidiary, Cavendish Industries Limited (CIL), to streamline operations.
External Factors
Industry Trends
The industry is shifting toward radialization and premiumisation. JK Tyre is positioning itself with >90% radial capacity utilization and expanding ASLTR capacities to meet evolving mobility needs.
Competitive Landscape
The industry is highly competitive with volatile input prices. JK Tyre competes by focusing on operational efficiency and a premium product mix.
Competitive Moat
The moat is built on a leadership position in the TBR segment, a strong brand, and an extensive distribution network. This is sustainable due to high entry barriers in tyre manufacturing and established OEM relationships.
Macro Economic Sensitivity
Revenues are highly sensitive to the cyclicality of the automotive industry and GDP growth, particularly affecting the commercial vehicle segment which saw subdued demand post-elections.
Consumer Behavior
There is an increasing consumer preference for premium tyres and a shift toward radial tyres in the light truck segment.
Geopolitical Risks
The present geopolitical landscape presents risks due to the industry's deep integration with the global economy and reliance on imported raw materials.
Regulatory & Governance
Industry Regulations
Operations are subject to environmental regulations regarding carbon emissions and health/safety standards due to the energy-intensive nature of tyre manufacturing.
Environmental Compliance
The company has adopted a 6 'R' strategy for sustainability. Specific compliance costs in INR were not disclosed.
Taxation Policy Impact
The consolidated provision for tax was INR 400 Cr in FY25 on a Profit Before Tax of INR 1,211 Cr, implying an effective tax rate of approximately 33%.
Legal Contingencies
The company received a certificate stating no directors have been debarred by SEBI or MCA. No specific pending court case values in INR were disclosed in the provided text.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (natural rubber and crude) is the primary uncertainty, with a potential to swing PBILDT margins between 8% and 15% based on historical trends.
Geographic Concentration Risk
While global, the company has significant exposure to the Indian market and Mexico (via JK Tornel).
Third Party Dependencies
Dependency on natural rubber suppliers is high, as it constitutes 1/3 of raw material costs.
Technology Obsolescence Risk
The company is mitigating technology risks through 'digital leadership' and R&D in radial technology and green manufacturing.
Credit & Counterparty Risk
Receivables and inventory are managed through strict controls; liquidity is considered 'Adequate' with cash and bank balances of INR 755 Cr as of March 2024.
