JK Tyre & Industries Limited has reported a strong and broad-based financial performance for the third quarter of FY2025–26, underlining the company’s improving profitability and operational efficiency across markets.
The company’s consolidated net profit (PAT) surged nearly 3.7 times year-on-year to ₹209 crore in Q3, compared with ₹57 crore in the corresponding quarter last year. Consolidated revenue for the quarter stood at ₹4,235 crore, while EBITDA rose to ₹583 crore. EBITDA margins expanded significantly to 13.8 percent, marking an improvement of 470 basis points on a yearly basis. Profit before tax (PBT) for the quarter was reported at ₹254 crore.
Strong Domestic Demand Drives Growth
Commenting on the results, Chairman and Managing Director Dr. Raghupati Singhania said the company’s performance was supported by robust demand in the automobile sector, benefits from GST-related reforms, festive season momentum, and improving rural sentiment.
Domestic operations recorded double-digit growth of 16 percent year-on-year. The replacement segment grew by 12 percent, while the OEM segment registered a sharp increase of 27 percent, reflecting higher vehicle production and renewed demand from manufacturers. Despite ongoing geopolitical uncertainties, export performance also remained resilient during the quarter.
Margin Expansion Through Efficiency and Premiumisation
JK Tyre attributed the sharp improvement in profitability to product premiumisation, better operational efficiency, disciplined cost control, and favourable raw material prices. Enhanced execution across manufacturing and supply chains further supported margin expansion during the quarter.
Successful Merger of Cavendish Industries
A key strategic milestone during the quarter was the successful merger of Cavendish Industries Limited (CIL) into JK Tyre. Acquired in 2016, CIL has undergone a significant turnaround, with capacity utilisation improving from around 30 percent to over 95 percent. The company described this as another successful integration, following earlier turnarounds such as Vikrant Tyres and JK Tornel in Mexico.
International Operations and Outlook
JK Tornel, the company’s Mexico-based subsidiary, also reported notable improvement in financial performance, contributing positively to consolidated results.
Looking ahead, Dr. Singhania expressed confidence about the fourth quarter and the medium-term outlook. Supportive macroeconomic indicators, including positive consumer sentiment, lower interest rates, and stable demand across segments, are expected to sustain growth momentum into FY27.
Progress on Sustainability and ESG
Reaffirming its commitment to sustainable growth, JK Tyre announced that it has received a Silver rating in the latest EcoVadis ESG assessment, placing the company among the top 7 percent of global companies evaluated. This milestone supports its long-term vision of becoming a green company by 2050.
Overall, JK Tyre’s Q3 performance highlights its strengthened financial position, competitive advantage in domestic and international markets, and a clear strategic focus on sustainable, long-term growth.
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