MRF Q4 FY26 profit up 43%, declares ₹229 final dividend

Stock reaction after results and dividend

MRF shares traded higher on Thursday after the company reported a stronger March-quarter performance and announced a large final dividend for FY26. The stock rose 1.01% to ₹1,31,685 in one update, and was also seen trading nearly 1% higher around ₹1,31,450 on the NSE after the results. Another update pegged the move at about 1.3%, with the stock around ₹1,31,865.

The dividend announcement was made alongside the Q4 earnings release. The company has not disclosed the record date for the dividend payment yet. MRF’s equity shares have a face value of ₹10.

Q4 FY26 consolidated: profit and revenue rise

For the fourth quarter ended March 2026 (Q4 FY26), MRF reported a sharp year-on-year increase in consolidated net profit. Consolidated net profit surged 42.66% YoY to ₹700.68 crore in Q4 FY26.

Revenue from operations rose 13.70% YoY to ₹8,044.22 crore during the quarter. Profit before exceptional items and tax increased 38.93% YoY to ₹915.77 crore in the March quarter.

The company also reported exceptional items worth ₹13.96 crore, linked to labour code compliance.

Q4 FY26 standalone: EBITDA growth and margin improvement

Separately, MRF reported a 37% year-on-year rise in standalone net profit to ₹680 crore for the fourth quarter, compared with ₹498 crore in the corresponding period last year, as per a regulatory filing dated May 7.

Standalone revenue from operations grew 14% to ₹7,908 crore from ₹6,944 crore a year earlier. Including other income, total income for the quarter increased 14% to ₹8,041 crore from ₹7,055 crore.

EBITDA for the quarter rose 21.5% year-on-year to ₹1,305.3 crore from ₹1,075 crore, while EBITDA margin improved to 16.2% from 15.2%.

Exceptional items and profit before tax

On the standalone side, profit before exceptional items and tax was reported at ₹885 crore versus ₹645 crore a year earlier, marking a 37% increase. After accounting for an exceptional gain of ₹15 crore, profit before tax stood at ₹900 crore, up 39% from the March 2025 quarter.

On the consolidated side, the company’s profit before exceptional items and tax was reported at ₹915.77 crore, and exceptional items were cited at ₹13.96 crore related to labour code compliance.

These disclosures indicate that MRF’s profitability improved in Q4, with operating metrics supported by higher income and improved margin, alongside the stated treatment of exceptional items.

Cost trends: expenses rise, finance costs fall

MRF’s expenses increased year-on-year during the quarter, reflecting higher operating scale and cost movements. Consolidated total expenses rose 11.28% to ₹7,267.51 crore in Q4 FY26, compared with ₹6,531.04 crore in Q4 FY25.

In the same consolidated cost breakup, cost of material consumed stood at ₹4,994.25 crore (up 5.79% YoY), employee benefit expenses were ₹550.83 crore (up 16.98% YoY), and finance cost was ₹86.33 crore (down 11.84% YoY).

On the standalone side, total expenses were reported at ₹7,157 crore for the quarter, up 12% from ₹6,410 crore a year ago. Raw material consumption rose 6% to ₹4,945 crore from ₹4,680 crore, employee benefit expenses climbed 17% to ₹537 crore, and other operating expenses increased 23% to ₹1,231 crore.

Dividend details: ₹229 final, ₹235 total for FY26

MRF’s board of directors recommended a final dividend of ₹229 per equity share (face value ₹10) for FY26, subject to shareholders’ approval at the upcoming annual general meeting.

The company had already declared and paid two interim dividends of ₹3 per share each during the financial year. With the final dividend, the total dividend payout for FY26 stands at ₹235 per equity share, described as 2,350% on equity shares of ₹10 each. The final dividend of ₹229 per share is also described as 2,290% on the ₹10 face value.

Full-year FY26 snapshot

For the full financial year FY26, MRF reported revenue from operations of ₹30,652 crore, up 11% from ₹27,665 crore in FY25. Total income rose 11% to ₹31,140 crore from ₹28,068 crore.

Annual net profit increased 29% to ₹2,355 crore compared with ₹1,823 crore in the previous financial year. Profit before tax for FY26 stood at ₹3,133 crore, up 29% from ₹2,420 crore a year earlier.

Key numbers at a glance

Business profile and what investors track next

MRF is engaged in manufacturing rubber products such as tyres, tubes, flaps and tread rubber, and also trades in rubber and rubber chemicals. The Q4 update places attention on operating margins, raw material consumption and the company’s dividend policy.

The next formal step on dividends is shareholder approval at the annual general meeting, while the record date for the final dividend remains undisclosed in the update. Investors will also track how costs and margins evolve after the quarter in which the company recorded exceptional items linked to labour code compliance.