Goodyear India Q2 Net Profit Jumps 32% to ₹17.2 Crore Amid Soaring Production Costs

Goodyear India pulled off a 31.6% climb in second-quarter net profit, generating ₹17.2 crore for the quarter ended September 30, 2026, up from ₹13.1 crore during the same window last year. Revenue from operations climbed 9.2% to ₹760.9 crore against ₹696.5 crore a year prior.

Raw expenses nearly wiped out those gains.

Total outlays jumped 27.2% to ₹742.1 crore, up from ₹583.5 crore in the year-ago period. The expenditure spike outpaced revenue expansion by a wide margin, squeezing operational headroom and keeping profit before tax at ₹23.4 crore compared to ₹17.5 crore in the second quarter of fiscal 2026.

Escalating Raw Material Bills and Operational Spend

The real weight fell directly on procurement. Cost of materials consumed shot up to ₹368.3 crore from ₹207 crore twelve months earlier—an increase that directly reflects the heavy price tag of rubber, carbon black, and processing chemicals hitting manufacturing floors across the automotive supply chain.

Purchases of stock-in-trade climbed to ₹254.9 crore from ₹202.7 crore. Other expenses mounted to ₹114.2 crore against ₹94.4 crore, while employee benefit expenses ticked up to ₹55.5 crore from ₹51.3 crore.

Market Context: For vehicle owners and commercial fleet operators, tyre replacement costs track commodity spikes closely. When manufacturer procurement expenditures surge over 75% in a single quarter, retail tyre price hikes across passenger and commercial vehicle networks generally follow to safeguard plant margins.

Half-Year Contraction and Operating Cash Drag

Look past the single-quarter bump, and the broader six-month picture tells a far tougher story. Goodyear India recorded an 18.8% growth in half-year operational revenue to ₹1,535.2 crore for the six months ended September 30, 2026, up from ₹1,292.7 crore a year earlier. Total income stood at ₹1,545.6 crore against ₹1,268.9 crore.

Yet total expenses over the six-month stretch advanced 24.2% to ₹1,521.7 crore.

That spending pace crippled half-year profitability. Profit before tax plummeted 34.5% to ₹23.9 crore from ₹36.5 crore, while profit after tax dropped 12.8% to ₹23.7 crore from ₹27.2 crore posted in the corresponding six months of fiscal 2026.

Cash reserves took an immediate hit. Goodyear India closed the half-year with cash and cash equivalents of ₹183.4 crore on September 30, 2026, down from ₹231.3 crore on March 31, 2026. Net cash generated from operating activities slumped to ₹24 crore for the six months, roughly half the ₹45.5 crore logged during the same period last year.

Capital expenditure remained restrained at approximately ₹11.5 crore over the six months. Meanwhile, the tyre maker cleared its shareholder commitments, with the board executing a final dividend payout of ₹26.50 per equity share of face value ₹10 for fiscal 2026, following shareholder clearance at the annual general meeting on August 12, 2026.