JK Tyre & Industries Limited has informed the Exchange about Transcript
JKTYRE · price
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JK Tyre reported its highest-ever quarterly consolidated revenue of Rs. 4,026 crores in Q2FY26, up 10% year-on-year, with EBITDA rising 21% YoY to Rs. 536 crores and margins expanding 240 basis points quarter-on-quarter to 13.3%. Profit after tax grew 54% YoY to Rs. 223 crores, driven by softer raw material prices (down 3% QoQ), higher volumes, and improved operational efficiency. The Mexican subsidiary JK Tornel bounced back sharply with sales of Rs. 639 crores (up 26% QoQ) and a near five-fold jump in EBITDA to Rs. 49 crores at 7.6% margins. Management guided EBITDA margins to stay in the 13–15% range and reaffirmed double-digit revenue growth, while flagging total capex of about Rs. 1,200 crores for FY26 across three expansion projects (PCR, TBR, and light truck radials). The merger with Cavendish is expected to be completed by end-November 2025, and the GST cut from 28% to 18% on tyres has been fully passed on to customers, supporting demand.
Strong quarter with margin expansion and robust volume growth across segments is positive for shareholder sentiment. The margin guidance of 13–15% and double-digit revenue growth outlook, combined with capacity expansion coming on stream in Q3, suggest continued earnings momentum. Net debt has risen modestly to fund capex and working capital but leverage at 0.75x debt-to-equity remains comfortable.