MRF Q1FY26 results: Profit slips 14% to ₹484 cr on higher rubber prices

Indian tyre maker MRF reported a nearly 14 per cent drop in first-quarter profit on Tuesday, pressured by higher rubber costs.

Company's net profit fell to ₹484 crore ($55.24 million) for the quarter ended June 30, compared with ₹563 crore last year.

Revenue from operations rose 6.8 per cent to ₹756 crore, while total expenses increased 9.8 per cent, driven largely by a 6.4 per cent rise in the cost of materials consumed, which accounts for more than half of overall expenses.

Shares of MRF dropped 3.5 per cent following the earnings announcement.  Tyre manufacturers such as MRF, which supplies to automakers including Hyundai Motor India and Bajaj Auto, rely heavily on vehicle sales for a significant portion of their revenue.

Total vehicle sales in the country slipped 5.1 per cent in the reported quarter, compared with a 16.4 per cent growth in the year-ago period.

A surge in domestic rubber prices weighed on tyre manufacturers' first-quarter earnings, analysts said.

Rivals CEAT missed its quarterly profit estimate last month, while Goodyear India reported a lower profit on Monday, pressured by weak auto demand.