JK Tyre & Industries reported a 10% increase in revenue for Q2 FY26, reaching ₹4,026 crores. The company achieved its highest-ever consolidated revenue, driven by strong domestic volume growth of 15%. EBITDA stood at ₹536 crores with an improved margin of 13.3%. The company expects continued growth, with focus on exports and domestic market expansion.
Financial Performance
JK Tyre & Industries announced its Q2 FY26 results, highlighting significant growth and operational improvements:
- Revenue: Reached ₹4,026 crores, a 10% increase compared to the same quarter last year.
- EBITDA: Stood at ₹536 crores, with margins improving to 13.3%. This improvement is attributed to higher sales volumes and softening raw material prices.
- Profit After Tax: Increased by 54% YoY.
Operational Highlights
The company reported several key operational achievements:
- Domestic markets registered volume growth of 15%.
- Export volumes grew by 13% over the previous quarter.
- Radial capacity utilization remains above 90%.
Segment Performance
Growth was seen across various segments:
- TBR (Truck and Bus Radial) volumes in the replacement market grew by 22% YoY.
- Passenger line volumes increased by 16% in the replacement market.
- Farm category volumes saw robust growth, with 78% in OEM and 12% in the replacement market.
- 2/3 wheeler category volumes in OE segment grew by 155% YoY.
JK Tornel (Mexico)
JK Tornel demonstrated strong performance, achieving its highest-ever sales in six quarters. Sales have bounced back to ₹639 crores, a jump of 26% from the previous quarter. EBITDA grew nearly five-fold. The company is focusing on increasing sales in domestic and LATAM markets.
Capex and Expansion
The company has ongoing projects for capacity expansion with a total cash outflow of ₹1,200 crores scheduled for the year. This includes expansions for Passenger Car Radial (PCR), TBR, and All Steel Light Truck Radial tyres (ASLTR) categories.
Outlook and Strategy
JK Tyre is optimistic about sustained demand and expects to maintain double-digit revenue growth. The company is focusing on expanding its presence in both domestic and international markets.
Source: BSE