Goodyear India Q2 profit climbs 32%, half-year earnings fall

Goodyear India Limited reported profit of Rs 17.20 crore for the quarter ended September 30, 2026, up 32% year on year as revenue from operations rose 28% to Rs 760.86 crore. Goodyear India’s six-month profit nevertheless fell 13% to Rs 23.71 crore, despite an Rs 8.18 crore June-quarter exceptional-item reversal.

How did Goodyear India perform in the September 2026 quarter?

Goodyear India earned Rs 17.20 crore in the three months ended September 30, 2026, compared with Rs 13.07 crore in the corresponding quarter ended September 30, 2025. Profit before tax increased to Rs 23.36 crore from Rs 17.52 crore, while basic and diluted earnings per share rose to Rs 7.46 from Rs 5.67.

Revenue from operations rose by Rs 164.40 crore to Rs 760.86 crore from Rs 596.46 crore a year earlier. Other income was Rs 4.59 crore, against Rs 4.54 crore, taking total income to Rs 765.45 crore. Total expenses increased to Rs 742.09 crore from Rs 583.48 crore, leaving profit before exceptional items and tax of Rs 23.36 crore.

Goodyear India’s September-quarter profit was also above Rs 6.51 crore in the preceding quarter ended June 30, 2026, although revenue was slightly below Rs 774.35 crore. Profit before exceptional items and tax rose from Rs 0.52 crore in June to Rs 23.36 crore in September. The June-quarter result included an Rs 8.18 crore exceptional item, which lifted reported June-quarter profit before tax to Rs 8.70 crore.

What changed in Goodyear India’s costs during the quarter?

Goodyear India’s cost of materials consumed increased to Rs 366.32 crore in the September 2026 quarter from Rs 206.99 crore a year earlier, while purchases of stock-in-trade rose to Rs 254.87 crore from Rs 202.70 crore. Employee-benefit expense increased to Rs 55.52 crore from Rs 51.25 crore, and other expenses rose to Rs 114.22 crore from Rs 94.37 crore.

Inventory changes partly offset those increases. Goodyear India recorded a negative Rs 62.49 crore charge under changes in inventories of finished goods, work-in-progress and stock-in-trade, compared with a positive Rs 14.30 crore charge a year earlier. Finance costs were Rs 1.35 crore against Rs 1.30 crore, while depreciation and amortisation declined to Rs 12.30 crore from Rs 12.57 crore.

Tax expense rose to Rs 6.16 crore from Rs 4.45 crore as profit before tax increased. The September 2026 tax amount comprised current tax of Rs 6.72 crore and a deferred-tax credit of Rs 0.56 crore. In the year-earlier quarter, Goodyear India reported current tax of Rs 4.52 crore and a deferred-tax credit of Rs 0.07 crore.

Why did Goodyear India’s first-half profit decline?

Goodyear India’s profit for the six months ended September 30, 2026 was Rs 23.71 crore, compared with Rs 27.18 crore in the corresponding 2025 period. Revenue from operations increased 23% to Rs 1,535.21 crore from Rs 1,252.68 crore, but basic and diluted earnings per share declined to Rs 10.28 from Rs 11.78.

Profit before exceptional items and tax fell to Rs 23.88 crore from Rs 36.48 crore in the prior-year half year. The Rs 8.18 crore exceptional item recorded in the quarter ended June 30, 2026 raised reported first-half profit before tax to Rs 32.06 crore, still below Rs 36.48 crore a year earlier. The prior-year half-year result had no exceptional item disclosed.

The exceptional item followed employee-compensation restructuring in the June 2026 quarter. Goodyear India remeasured its gratuity and compensated-absence obligations, resulting in a reversal of past-service cost recognised in earlier quarters. The company said the Rs 8.18 crore reversal was accounted for under Indian Accounting Standard 19 on employee benefits after the November 21, 2025 notification of four Labour Codes.

What changed in Goodyear India’s balance sheet and cash flow?

Goodyear India’s total assets were Rs 1,378.33 crore at September 30, 2026, compared with Rs 1,253.59 crore at March 31, 2026. Current assets rose to Rs 943.81 crore from Rs 818.91 crore, with inventories increasing to Rs 320.09 crore from Rs 255.91 crore and trade receivables rising to Rs 342.54 crore from Rs 284.15 crore. Cash and cash equivalents declined to Rs 183.44 crore from Rs 231.34 crore.

Total equity fell to Rs 569.80 crore from Rs 606.19 crore, while total liabilities rose to Rs 808.53 crore from Rs 647.40 crore. Current liabilities increased to Rs 741.32 crore from Rs 573.48 crore. Trade payables due to creditors other than micro and small enterprises rose to Rs 612.79 crore from Rs 448.37 crore.

Net cash inflow from operating activities was Rs 23.97 crore for the half year, down from Rs 45.54 crore a year earlier. Cash generated from operations declined to Rs 37.20 crore from Rs 55.27 crore, while income taxes paid rose to Rs 13.23 crore from Rs 9.73 crore. The cash-flow statement recorded a Rs 64.18 crore increase in inventories and a Rs 166.46 crore increase in trade payables.

Investing activities used Rs 5.16 crore, compared with Rs 3.76 crore in the prior-year half year, including Rs 11.49 crore spent on property, plant and equipment. Financing activities used Rs 66.71 crore, led by Rs 61.13 crore of dividends paid. Shareholders approved a final dividend of Rs 26.50 per Rs 10 equity share at the annual general meeting held on August 12, 2026.

Conclusion

Goodyear India delivered higher September-quarter revenue and profit, with Rs 760.86 crore of revenue and Rs 17.20 crore of profit. The first-half comparison was less favourable because profit before exceptional items and tax declined to Rs 23.88 crore from Rs 36.48 crore, even as six-month revenue increased by Rs 282.53 crore.

The next results will show whether the September-quarter profit recovery continues after the June 2026 employee-benefit reversal. Goodyear India has not disclosed earnings guidance or a financial target in this filing; its next reported balance sheet will also show how inventories of Rs 320.09 crore, receivables of Rs 342.54 crore and cash of Rs 183.44 crore develop.