JK Tyre & Industries announced its financial results for Q3 of FY’26, reporting the highest ever consolidated revenue of INR 4,235 crores, a 15% YoY increase. EBITDA margin expanded significantly to 13.8%. Profit After Tax (PAT) surged 3.7x to INR 209 crores, driven by premiumization, operating leverage, and favorable raw material costs. The company also successfully completed the merger of its subsidiary, Cavendish Industries Limited.
Q3 FY’26 Highlights and Performance
JK Tyre & Industries successfully concluded the third quarter of FY’26 with robust performance across all key metrics. The management highlighted achieving the highest ever consolidated revenue of INR 4,235 crores, marking a 15% year-on-year (YoY) growth over the corresponding quarter’s INR 3,694 crores.
EBITDA stood at INR 583 crores, resulting in an improved margin of 13.8%, representing a strong 470 basis points expansion YoY. Profit After Tax (PAT) witnessed a massive surge, jumping 3.7x to INR 209 crores, compared to INR 57 crores in Q3 FY’25. Consequently, Earnings Per Share (EPS) grew 4x to INR 7.29.
Operational and Market Dynamics
The domestic market demonstrated healthy growth, with overall volume increasing by 16% YoY, supported by 11% growth in the replacement segment and 24% growth in the OE segment (excluding 2/3W). Export volumes grew by 9% despite geopolitical uncertainty. The management noted a sustained demand momentum, with capacity utilization in India reaching 90% and consolidated utilization above 85%.
Product mix improvement was a key driver, evidenced by 16-inch & above PCR tyres contribution rising to nearly 31% from 27% last year. Furthermore, the company secured new OEM approvals for EV tyres for Hyundai Creta and Tata Punch variants. The company also completed the merger of subsidiary Cavendish Industries Limited (CIL), expecting significant operational and financial synergies.
Strategic Expansion and Outlook
To capitalize on market opportunities, JK Tyre has decided to expand capacities across TBR, ASLTR, and PCR categories at an aggregate cost of INR 1,130 crores, which will increase overall capacity by nearly 7%. This is part of a larger five-year CAPEX plan. The company maintained its EBITDA margin guidance of 13% to 15%, confident in OE demand and premiumization traction.
Mexico (JK Tornel) Performance
The Mexican subsidiary, JK Tornel, reported significant growth, with revenues increasing 21% YoY to INR 639 crores (from INR 507 crores in Q3 FY’25), primarily benefiting from a favorable rupee depreciation against the Mexican peso. In constant currency terms, revenues were flat. EBITDA reached INR 58 crores, up 45% YoY, with margins improving to 9.4%. Exports contributed nearly 40% of JK Tornel’s revenue, with the management targeting mid-single-digit growth for the business going forward.
Exceptional Items Noted
The financial results included several one-time exceptional items totaling INR 56.75 crores related to the newly notified Labor Codes. Other exceptional charges included stamp duty due to the merger and mark-to-market foreign exchange losses. The effective tax rate for the quarter remained broadly at 25%.
Source: BSE
