JK Tyre & Industries Limited announced its Q2 FY27 financial results, achieving a record consolidated turnover of ₹4,850 crore, a 20% increase year-on-year. Consolidated EBITDA rose by 28% sequentially to ₹343 crore. The company highlighted robust domestic sales growth, driven by a strong OE market performance and premiumization trends, alongside strategic expansion and cost management initiatives.
JK Tyre Reports Strong Q2 FY27 Performance
JK Tyre & Industries Limited has announced its financial results for the second quarter (Q2) of the fiscal year 2027 (FY27), marking a significant milestone with its highest-ever consolidated turnover of ₹4,850 crore. This represents a robust 20% increase compared to the same period last year, when the turnover stood at ₹4,026 crore.
EBITDA and Profitability Growth
The company’s consolidated EBITDA for Q2 FY27 recorded at ₹343 crore, showing a substantial 28% increase quarter-on-quarter from ₹268 crore in Q1 FY27. This translated to an improved EBITDA margin of 7.1%, up from 6.8% in the previous quarter. Profit After Tax (PAT) also saw a significant surge, growing by 40% sequentially to ₹60 crore. Consolidated Earnings Per Share (EPS) stood at ₹2.29 for the quarter.
Operational Highlights and Market Performance
The domestic market experienced healthy volume growth of 22%, driven by a strong 25% increase in the Original Equipment (OE) market and a 20% growth in the replacement market. Truck, Bus Radial (TBR) and Passenger Car Radial (PCR) segments continued to be cornerstones, with impressive OE volume growth of 76% and 35% respectively. Premiumization played a key role, with nearly 30% of passenger line volumes sold in H1 FY27 attributed to premium SKUs (16 inches and above).
India’s auto industry is navigating a healthy demand cycle, benefiting from government policies and rising consumer aspirations. JK Tyre has also seen a 24% surge in its EV volumes quarter-on-quarter, underscoring its leadership in the electric truck and bus segment. The company further expanded its customer reach by adding 250+ brand shops and Pitstops, onboarding over 80 new dealers.
Raw Material Costs and Pricing Strategy
Despite the challenging global environment, including supply chain disruptions and increased commodity prices, JK Tyre managed its raw material costs effectively. The average raw material cost saw an increase of approximately 9% sequentially in Q2, following a 22% rise in Q1 FY27. The company is mitigating these pressures through product mix improvements, calibrated pricing actions, and internal efficiencies. The average selling price (NSR) has been increased by 7% on a quarter-on-quarter basis.
JK Tornel Performance and Future Outlook
The JK Tornel subsidiary in Mexico reported a financial turnaround, with total revenue reaching ₹479 crore and EBITDA of ₹23 crore in Q2 FY27. The company’s upgradation and modernization project at JK Tornel is progressing as planned. Looking ahead, JK Tyre is focused on operating efficiencies, cost optimization, and leveraging its R&D and innovative capabilities to drive sustained growth.
Financial Health and Capex
Consolidated net debt stood at ₹5,696 crore as of September 30, 2026. The company’s balance sheet remains healthy, with a net debt-to-equity ratio of 0.94x. JK Tyre has guided for a total capex of approximately ₹500 crore for the remaining period of the fiscal year, building on the INR 1,400 crore projects completed recently.
Source: BSE
