Runaway raw material expenses took a heavy toll on India’s largest tyre maker. MRF Limited posted a 26.6% decline in consolidated net profit from continuing operations for the second quarter ended September 30, 2026, pulling net earnings down to ₹386.99 crore from ₹527.43 crore a year earlier. The bottom line cracked under pressure. On a standalone basis, net profit fell 27.8% to ₹369.15 crore.
Yet top-line vehicle demand held firm across replacement and original equipment channels. Consolidated revenue from operations jumped 17.4% year-on-year to ₹8,660.19 crore, beating the ₹7,378.72 crore logged in the corresponding quarter last year. Standalone revenue told a similar tale, climbing 17.6% to ₹8,523.96 crore. Fleet operators and car owners kept buying rubber, but every tyre leaving the factory floor generated far leaner returns.
Soaring input costs wiped out top-line gains. Cost of materials consumed surged 43% year-on-year to ₹6,552.57 crore, up from ₹4,577.49 crore in the second quarter of the previous fiscal year. Total consolidated expenses climbed to ₹8,269.77 crore against ₹6,788.55 crore, eroding operational spreads. Profit before tax slid to ₹521.81 crore from ₹700.45 crore.
| Metric (Consolidated) | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹8,660.19 cr | ₹7,378.72 cr | +17.4% |
| Cost of Materials Consumed | ₹6,552.57 cr | ₹4,577.49 cr | +43.1% |
| Profit Before Tax (PBT) | ₹521.81 cr | ₹700.45 cr | -25.5% |
| Net Profit (PAT) | ₹386.99 cr | ₹527.43 cr | -26.6% |
| Basic & Diluted EPS | ₹912.46 | ₹1,243.60 |
Working capital requirements also tied up significant liquid resources across the half-year. Standalone inventories expanded to ₹7,083.63 crore by September 30, 2026, compared to ₹5,337.66 crore on March 31, driven by higher-priced raw rubber and finished stock. Inventories absorbed ₹1,745.97 crore in operational cash flow over the six-month span. As a result, net cash generated from operating activities on a standalone basis contracted to ₹1,238.76 crore from ₹2,015.93 crore, while standalone capital expenditure reached ₹1,001.60 crore.
Despite tighter margins, the MRF board of directors cleared an interim dividend of ₹3 per equity share of ₹10 face value—a 30% payout—for the financial year ending March 31, 2027. The company fixed November 17, 2026 as the record date, with dividend disbursements scheduled to begin on or after December 1, 2026.
| -26.6% |