Goodyear India, MRF surge up to 16% after strong Q3 result

Volume growth of tyre companies remained healthy, supported by robust momentum in both the OEM and replacement segments, along with continued premiumisation, said Ceat management.

Goodyear India, MRF share price today

 

Tyre shares MRF and Goodyear India rallied up to 16 per cent on the BSE in Friday’s intra-day trade after these companies reported strong earnings for the third quarter of the financial year 2025-26 (Q3FY26).

 

Shares of Goodyear India zoomed 16 per cent to ₹920, while MRF surged 10 per cent to ₹149,000 in intra-day deals. Meanwhile, Ceat jumped 3 per cent to ₹3,977 and Balkrishna Industries added 2 per cent to ₹2,748.

 

At 02:26 PM; these stocks were trading higher by up to 9 per cent, as compared to 0.19 per cent rise in the BSE Sensex.

 

 

Goodyear India, MRF Q3 results

 

For Q3FY26, MRF reported a robust 119 per cent year-on-year (YoY) jump in its consolidated profit after tax (PAT) at ₹691.83 crore, as against ₹315.46 crore in Q3FY25. Revenue from operations grew by 15 per cent YoY at ₹8,050 crore. Reported earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded to 17.38 per cent in Q3FY26 from 11.92 per cent in Q3FY25.

 

Goodyear India posted stellar Q3FY26 results, with standalone PAT more-than-doubling to ₹24.63 crore from ₹ 9.48 crore in Q3FY25, on healthy operational performance. Revenue from operations, however, declined 3.9 per cent YoY to ₹606.91 crore.

 

Volume growth of tyre companies remained healthy, supported by robust momentum in both the OEM and replacement segments, along with continued premiumisation.

 

Brokerage view on Ceat, Balkrishna Industries

  Meanwhile, the management of Ceat said the demand is sustaining, aided by recent GST cuts with healthy growth across OEM replacement, though sustenance of the same is monitorable beyond 2-3 quarters. Replacement demand staged a recovery post GST rationalisation, with mid-teens growth driven by improvement in underlying consumption across segments rather than channel restocking; the management guided to a high single-digit replacement growth in FY27.

 

The company's management remains confident of sustaining double-digit growth in the domestic market in the near term, aided by favourable GST rates, positive rural sentiment, and rising premiumisation.

 

Looking ahead, the management expects replacement demand to grow at a high single-digit rate in FY27, with inventory levels now normalised. In the OEM segment, MHCV demand is showing early signs of recovery with high double-digit growth expected, while 3W demand is supported by e-commerce and quick commerce. PV volumes are expected to grow in double digits, aided by a revival in entry-level demand and improved financing, and 2W demand is also expected to sustain double-digit growth, analysts at JM Financial Institutional Securities said in Ceat’s Q3 result update.

 

Meanwhile, reduction in reciprocal tariffs from 50 per cent to 18 per cent is more positive for the ancillary space vs. the OEM domain.

 

Balkrishna Industries is the leader in the niche tyre segment (OHT) used in heavy machinery for mining and agriculture purposes. Exports form lion’s share of its sales at ~71 per cent as of FY25. The US is an important geography for the company with contribution to sales pegged at 15 per cent and thus stands to benefit from decline in reciprocal tariffs. With improved growth outlook, analysts at ICICI Securities upgraded the stock to 'BUY' with a revised target price of ₹2,885 i.e. 30x PE on FY28E.  =====================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.