JK Tyre Accelerates with Record Q2 FY26 Performance and Strategic Expansions

JK Tyre & Industries Limited has reported a stellar performance for the second quarter of Fiscal Year 2026, showcasing robust growth and strategic foresight. The company achieved its highest-ever consolidated revenues, signaling strong operational momentum amidst a dynamic market environment. This impressive financial uptick is underpinned by a combination of resilient domestic demand, strategic product launches, and a disciplined approach to cost management.

For Q2 FY26, JK Tyre's consolidated revenues soared to Rs. 4,026 crores, marking a significant 10% increase year-on-year. This top-line growth was complemented by a remarkable improvement in profitability, with consolidated EBITDA reaching Rs. 536 crores. This represents a substantial 26% quarter-on-quarter and 21% year-on-year growth, pushing EBITDA margins to a healthy 13.3%. The company's profit after tax (PAT) also witnessed a robust surge, climbing 54% year-on-year to Rs. 223 crores. These figures reflect effective operational efficiencies and the benefits of softening raw material prices.

Driving Growth Across Segments

The company's performance was broad-based, with significant contributions from various product lines. The truck and bus segment continued to be a major revenue driver, accounting for 50% of the consolidated revenue mix in Q2 FY26. Passenger Line Radial tyres contributed 32%, while 2/3-wheelers and other categories made up the remaining 4% and 14% respectively. This diversified product portfolio caters to a wide range of vehicles, from commercial vehicles to passenger cars and farm equipment.

Domestic markets experienced a robust 15% growth in volumes, with commercial vehicles growing by approximately 9%, two-wheelers by 11%, and farm tyres by an impressive 28%. Even the passenger vehicle segment, despite a modest 2% growth initially, has started showing strong numbers. Exports also registered a double-digit growth of over 20% quarter-on-quarter, outpacing domestic growth, despite global trade uncertainties.

Strategic Initiatives and Future Outlook

JK Tyre is not just focusing on current performance but is actively investing in future growth. The company has three major capacity expansion projects underway in India, totaling Rs. 1,400 crores. These include expanding Passenger Car Radial (PCR) capacity at the Banmore plant (Rs. 1,025 crores), TBR capacity at the Laksar plant (Rs. 261 crores), and All Steel Light Truck Radial (ASLTR) capacity at the Mysuru plant (Rs. 112 crores). These projects are slated to commence production in Q3 FY26, with full ramp-up expected over the subsequent six months. An additional USD 21 million is being invested in Mexico for capacity expansion, expected to be online by Q1 FY27.

Innovation remains a cornerstone of JK Tyre's strategy. The company launched new EV tyre ranges, JETWAY JUX for commercial vehicles and Ranger HPe for passenger vehicles, demonstrating its commitment to the rapidly growing electric mobility market. These tyres are designed for enhanced safety, durability, and reduced rolling resistance, catering specifically to EV requirements. Furthermore, JK Tyre has embraced digital transformation, launching an AI-powered voice bot for superior customer interaction.

Commitment to Sustainability

JK Tyre's dedication to sustainability is evident in its top-notch CareEdge ESG1+ rating, which positions it as a leader in managing ESG risks. The company is the first Indian tyre manufacturer to publish an Environmental Product Declaration (EPD) on the International EPD System (IES) platform for three of its products. Initiatives such as using bio-sourced and recycled materials, continuous improvement in rolling resistance, GHG emission reduction, and achieving over 50% energy consumption from renewable sources highlight its strong environmental stewardship.

Confident Road Ahead

Management expressed confidence in maintaining a double-digit revenue growth guidance of 10% for FY26. They anticipate commercial vehicle and passenger car segments to grow in the mid-single-digit, while farm equipment and 2/3-wheeler categories are expected to see high single-digit growth. With robust macroeconomic fundamentals, buoyant domestic demand, and strategic investments in capacity and innovation, JK Tyre is well-positioned for sustained growth and market leadership in the coming years. The company's focus on operational excellence, product innovation, and sustainability underscores its strategic clarity and disciplined execution.