The tyre maker’s standalone revenue rose to ₹8,524 crore in the September quarter, but expenses grew faster than sales.
Highlights
- Standalone net profit fell 27.8% to ₹369.15 crore from ₹511.59 crore a year earlier.
- Revenue from operations rose 17.6% to ₹8,523.96 crore, supported by resilient tyre demand.
- Cost of materials consumed jumped nearly 44% to ₹6,538.07 crore, while total expenses rose 22.2%.
- Consolidated net profit stood at ₹386.99 crore, with revenue from operations of ₹8,660.19 crore.
- The board declared a ₹3 interim dividend per share, with November 17 as the record date
New Delhi, November 10 — Tyre maker MRF Ltd reported a 27.8% year-on-year decline in standalone net profit to ₹369.15 crore for the July–September quarter of FY27 as higher raw material costs outweighed gains from strong tyre demand. The company had posted a profit of ₹511.59 crore in the same quarter last year. Revenue from operations increased 17.6% to ₹8,523.96 crore from ₹7,249.68 crore.
Raw material costs outpace revenue growth
The cost of materials consumed rose to ₹6,538.07 crore from ₹4,543.23 crore a year earlier. Total expenses increased to ₹8,153.50 crore from ₹6,673.97 crore, outpacing revenue growth. As a result, standalone profit before tax fell 27% to ₹498.13 crore from ₹682.41 crore. Compared with the June quarter, revenue rose about 2.8%, while net profit fell about 22%.
Steady dispatches from automakers supported tyre demand during the quarter, Reuters reported. At the same time, adverse weather and supply shortages in key producing countries kept natural rubber prices elevated. The cost pressure extended across the sector, with rivals CEAT and JK Tyre also reporting lower quarterly earnings as higher input prices squeezed margins.
First-half profit falls despite higher sales
For the six months ended September 30, MRF’s standalone revenue from operations rose 13.5% to ₹16,815.52 crore from ₹14,809.96 crore a year earlier. Standalone net profit fell 15.3% to ₹843.52 crore from ₹995.82 crore. On a consolidated basis, the company reported first-half revenue of ₹17,075.69 crore and net profit of ₹882.34 crore.
MRF dividend record date set for November 17
MRF’s board declared an interim dividend of ₹3 per equity share for the financial year ending March 31, 2027. The payout represents 30% of the share’s ₹10 face value. The company fixed November 17, 2026, as the record date to determine shareholder eligibility and said it would pay the dividend on or after December 1, 2026.
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