JK Tyre Q4FY26 profit nearly doubles; plans ₹4,980 crore expansion

The tyre maker posted strong fourth-quarter earnings driven by robust demand and announced a phased capacity expansion amid rising domestic and export opportunities

JK Tyre and Industries on Tuesday posted that its consolidated net profit increased nearly twofold on a year-on-year basis to ₹178 crore for the fourth quarter (Q4) of the financial year 2025-26 (FY26). Similarly, revenue from operations rose 12.4 per cent to ₹4,223 crore.

 

The rise in profits was attributed to robust demand, which was supported by continued GST momentum along with softening interest rates and improved economic activity.

 

For the full year, profit was up 52 per cent at ₹776 crore while revenue from operations went up 11 per cent.

 

The results were announced after market hours. The company’s stock rose 1.97 per cent, ending the day’s trade at ₹394 per share on the BSE.

 

 

Raghupati Singhania, chairman and managing director (CMD), said: “FY26 has been a landmark year for JK Tyre. We delivered record volumes across segments, attaining the highest-ever annual consolidated revenue of ₹16,384 crore and achieving an EBITDA of ₹2,089 crore, an increase of 25 per cent over the previous year.”

 

The company said domestic tyre volumes grew 21 per cent during the quarter, led by a 53 per cent jump in truck and bus radial tyres and strong original equipment manufacturer (OEM) demand. Passenger car radial volumes also remained robust, supported by rising sport utility vehicle (SUV) demand and premiumisation trends.

 

The company has also approved a phased ₹4,980 crore expansion of its truck and bus radial and passenger car radial tyre capacities at its Chennai tyre plant and Vikrant tyre plant, with nearly 90 per cent of the investment earmarked for the Chennai facility.

 

The expansion, to be implemented in three phases till December 2029, will increase overall truck and bus radial (TBR) and passenger car radial (PCR) capacity by 24 per cent from the existing 210 lakh tyres per annum, including capacities under implementation. The company said its plants are currently operating at over 90 per cent utilisation and the capex will be funded through a mix of internal accruals and debt. JK Tyre said the expansion is aimed at meeting rising domestic and export demand while maintaining market presence amid robust growth across categories in the Indian tyre industry.

 

Management said the ongoing West Asia conflict has sharply increased crude-linked raw material costs, freight rates, container shortages, and shipping disruptions, which are expected to impact profitability in Q1FY27. The company expects raw material costs to rise 15 to 20 per cent during the quarter and has already implemented a 4 to 5 per cent price hike in the replacement market, with another 5 to 6 per cent increase under consideration. The company clarified that OEM price hikes typically happen with a lag under indexation-linked contracts, while export prices have already been raised by nearly 7 per cent.

 

To mitigate supply-chain risks, JK Tyre said it has diversified sourcing towards East Asian markets such as Taiwan, Korea, and China, while also accelerating research and development efforts on alternative and sustainable materials. The company said it had developed a passenger car radial tyre made with 80 per cent biodegradable materials, placing it among a handful of global tyre makers pursuing such technology. The company said the tyres are undergoing testing and are expected to be commercialised in the future as part of its long-term strategy to reduce dependence on volatile raw material supply chains.

 

On exports, the company said the India-UK free trade agreement could improve opportunities in the UK market, while exports from its Mexico business, which contributes nearly 20 per cent of consolidated revenue, are expected to stabilise following clarity on US tariff policies.

 

JK Tyre also highlighted strong momentum in the EV segment, stating that over 70 per cent of electric buses operating in India run on its tyres. The company supplies EV tyres to several two-wheeler makers and has secured OEM business for electric passenger vehicles, including models from Renault, Hyundai, and Tata Motors.