MRF Ltd. suffered a 13% slide in second-quarter net profit, hit by severe operational margin erosion that washed out double-digit topline gains. Net profit for the September quarter slipped to ₹417 crore from ₹479 crore in the year-ago period, according to the company's regulatory filing on Tuesday.
Topline growth stayed brisk. Revenue from operations climbed 17.4% to ₹8,660 crore against ₹7,379 crore posted twelve months earlier. But ballooning operating costs devoured those volume gains—leaving India's premier tyre heavyweight unable to protect its bottom line.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 14.9% year-on-year to ₹957 crore, falling from ₹1,125 crore in the corresponding quarter last year. Operating profitability took a severe beating. EBITDA margin contracted 425 basis points to 11% from 15.25% a year prior.
| Financial Metric | Q2 Current Period | Q2 Prior-Year Period | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹8,660 crore | ₹7,379 crore | +17.4% |
| Operating EBITDA | ₹957 crore | ₹1,125 crore | -14.9% |
| EBITDA Margin | 11.00% | 15.25% | -425 bps |
| Net Profit (PAT) | ₹417 crore | ₹479 crore | -13.0% |
To reward shareholders, the board declared an interim dividend of ₹3 per equity share of face value ₹10 each—equivalent to a 30% payout—for the financial year. The company fixed November 17, 2026, as the record date to determine eligible investors. Payouts will begin on or after December 1, 2026.
Selling pressure set in ahead of the corporate disclosure. Shares of MRF settled 1.26% lower at ₹1,25,105 on Monday, as institutional desks trimmed exposure amid broader auto ancillary margin headwinds.