Tyre stocks rally up to 4% in weak market; MRF hits record high

Among other tyre makers, Balkrishna Industries, Apollo Tyres and Ceat were up 2 per cent to 3 per cent on the BSE in intra-day trade.

Shares price of tyre companies today

 

Shares of tyre makers were in demand and rallied up to 4 per cent on the BSE in Wednesday’s intra-day trade in an otherwise subdued market on expectations of improved financial performance, driven by higher volumes across the automobile sector, alongside continuous cost control efforts.

 

Shares of MRF hit a record high of Rs 160,119.90, surging 4 per cent on the BSE in intra-day trade. Balkrishna Industries, Apollo Tyres and Ceat were up 2 per cent - 3 per cent. In comparison, the BSE Sensex was down 0.22 per cent at 81,745 at 11:47 AM.  READ LATEST STOCK MARKET UPDATES LIVE

OEM's strong volumes growth in September

 

As the festive season commenced along with anticipated GST rate cuts, OEM wholesale volume for September 2025 came in healthy. Notably, exports continue to stage a healthy growth on YoY basis for most of the OEMs. CV space reported healthy volume prints for the month of September 2025 with green shoots of recovery visible in the LCV segment, according to ICICI Securities.

 

With GST 2.0 reforms expected to meaningfully lift volumes in the auto space in the near to medium term, margins showing signs of recovery. Rubber & crude derivatives form bulk of raw material costs at tyre companies. Consequently, the domestic tyre industry has largely witnessed a volatile margin profile with industry realising healthy margins during periods of benign raw material prices. The brokerage firm sees green shoots of margin recovery for domestic tyre players, which coupled with swift volume recovery, to meaningful aid profit growth going forward.

 

The GST Council has provided a much-needed booster shot to the auto sector by reducing the tax rates on the majority of auto segments. These timely rate cuts, coupled with other sectoral tailwinds like normal monsoon boosting rural sentiment, a ~100bp reduction in interest rates in CY25 and income tax benefits, are expected to revive demand for the auto sector from this festive season, Motilal Oswal Financial Services said.  ALSO READ | Yatharth Hospital, Aster DM surge up to 8%, stocks at new highs; here's why

MRF outlook

 

With a long track record of operations and well-established pan-India distribution network, MRF enjoys a strong brand image. As on March 31, 2025, the company had an active network of over 5,000 dealers, translating into a strong presence in the replacement market, which is critical to the overall profitability. 

 

MRF has a strong presence in the replacement market which contributed to 70 per cent of the total revenue in FY25. With such a high share of revenue coming from the replacement market, risks arising out of strong competition and the cyclical nature of the automobile industry are relatively limited. In addition to this, the company has strong export revenue which contributed up to 8 per cent of the total revenue in FY25. Major export destinations of MRF in FY25 continued to be Philippines, Bangladesh, Nepal, and UAE.

 

MRF’s export to the United States of America is negligible; and hence, the impact of the 50 per cent reciprocal tariff on exports to US from August 27, 2025, is expected to be negligible, according to CareEdge Ratings.

 

Stable outlook for MRF reflects its likelihood to maintain its market position in the domestic tyre industry which coupled with a healthy demand scenario for tyre players should enable it to sustain its healthy operating and financial performance over the medium term, the rating agency said.