JK Tyre Q3 Profit Soars Four-Fold to ₹207 Crore in FY26

JK Tyre Reports Four-Fold Profit Jump in Q3 FY26

JK Tyre & Industries Ltd announced a remarkable performance for the third quarter of the financial year 2025-26, ending December 31, 2025. The company's consolidated net profit surged nearly four times to ₹207 crore, a substantial increase from the ₹52.6 crore reported in the same period last year. This robust growth was underpinned by strong domestic demand, favourable raw material costs, and significant operational efficiencies that led to a sharp expansion in margins.

Revenue from operations for the quarter grew by 15% year-on-year, reaching ₹4,223 crore compared to ₹3,673 crore in Q3 FY25. The strong top-line growth reflects healthy traction across all of the company's product segments, including both the original equipment manufacturer (OEM) and replacement markets.

Robust Financial Performance

The company's operating performance was a key highlight of the quarter. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by a notable 82% year-on-year to ₹571.3 crore from ₹313.8 crore in the corresponding quarter of the previous year. This substantial increase in operating profit propelled the EBITDA margin to expand sharply to 13.5%, a significant improvement from 8.5% a year ago. Management attributed this margin expansion to a strategic focus on product premiumisation, excellence in execution, and the benefits of softer raw material prices.

Ahead of the strong earnings report, the market sentiment was positive, with shares of JK Tyre & Industries Ltd closing 0.74% higher at ₹540 on the National Stock Exchange.

Key Financial Metrics: Q3 FY26 vs Q3 FY25

Domestic Demand and Operational Efficiency Drive Growth

The primary engine for JK Tyre's impressive quarter was its domestic business, which recorded a healthy double-digit growth of 16% year-on-year. This growth was broad-based, with the replacement segment growing by 12% and the OEM segment delivering a powerful 27% growth. The strong OEM numbers align with the broader recovery and record sales seen in India's passenger vehicle and two-wheeler markets during the fiscal year.

Exports also remained resilient, contributing positively to the overall performance despite geopolitical uncertainties impacting global trade. The company's ability to maintain export volumes demonstrates its strong brand presence and diversified market strategy.

Management's Perspective on the Quarter

Commenting on the results, Chairman & Managing Director, Dr. Raghupati Singhania, stated that JK Tyre delivered a robust performance supported by momentum from the festive season, positive rural sentiments, and structural reforms like GST. He emphasized that the strong demand across both OEM and replacement channels reflected customers’ continued trust in the brand's quality and reliability. Looking ahead, Dr. Singhania expressed confidence in sustaining this growth trajectory into the fourth quarter and the next financial year, citing healthy demand, positive consumer sentiment, and the potential for lower interest rates to further boost the auto sector.

Strategic Developments: CIL Merger and International Strength

A significant milestone during the quarter was the successful completion of the merger of Cavendish Industries Limited (CIL) with JK Tyre, following the receipt of all statutory approvals. This merger formalizes a successful turnaround story, as JK Tyre has scaled up CIL's capacity utilization from approximately 30% at the time of its acquisition in 2016 to over 95% today. This achievement adds to the company's track record of successful acquisitions, including Vikrant Tyres and JK Tornel in Mexico.

Furthermore, the company's international subsidiary, JK Tornel (Mexico), also delivered a significant improvement in its financial performance, providing a strong boost to the consolidated results and reinforcing the company's global operational strength.

Industry Context and Future Outlook

JK Tyre's performance comes against the backdrop of a resilient Indian automotive industry, which has seen record sales in several segments. The company is well-positioned to capitalize on this momentum with its ongoing capacity expansion of INR 14 billion. New passenger car radial capacity is expected to be fully operational by mid-2026, ensuring the company can meet rising demand, particularly for premium tyres required by the growing SUV market.

With a strong order book, normalized dealer inventories, and favorable macroeconomic factors, JK Tyre is optimistic about its future performance. The company's focus on premium products, operational efficiency, and strategic expansions provides a solid foundation for continued growth.

Conclusion

JK Tyre & Industries' third-quarter results for FY26 showcase a company firing on all cylinders. The nearly four-fold increase in profitability, driven by strong revenue growth and margin expansion, highlights its strong market position and operational prowess. With strategic initiatives like the CIL merger completed and capacity expansions underway, the company is well-equipped to leverage the positive momentum in the automotive sector and deliver sustained value to its stakeholders.