JK Tyre & Industries Q2 FY27 results: net profit down 71.3% to ₹65.07 crore, revenue up 20.7%

How did JK Tyre & Industries perform in Q2 FY27?

On a consolidated basis, JK Tyre reported Q2 FY27 revenue of ₹4,841 crore, compared with ₹4,011 crore in Q2 FY26 and ₹3,946 crore in Q1 FY27. Revenue increased 20.7% year on year and 22.7% sequentially. EBITDA was ₹333.91 crore, down 36.0% from ₹521.38 crore a year ago but up 29.3% from ₹258.22 crore in the previous quarter, while the margin was 6.9% against 13.0% and 6.5%, respectively.

Profit before tax fell 69.2% to ₹93.57 crore from ₹304.08 crore, and profit after tax fell 71.3% to ₹65.07 crore from ₹226.86 crore. Basic EPS was ₹2.29, down from ₹8.08 a year ago but up from ₹1.55 in Q1 FY27. On a standalone basis, revenue was ₹4,452.06 crore and profit after tax was ₹60.68 crore, compared with profit before tax of ₹167.66 crore.

What changed in JK Tyre & Industries' costs and profit?

Total expenses rose 27.7% to ₹4,744 crore from ₹3,714 crore in Q2 FY26. Cost of materials increased by ₹947.26 crore, or 38.7%, to ₹3,393 crore, while other expenses rose by ₹80.35 crore to ₹709.39 crore. Employee benefit expense declined by ₹18.35 crore to ₹396.17 crore, finance costs rose by ₹1.51 crore to ₹109.15 crore, and depreciation rose by ₹11.63 crore to ₹128.11 crore.

Other income fell by ₹5.07 crore to ₹9.23 crore from ₹14.30 crore. The quarter included an exceptional charge of ₹12.31 crore, against a ₹7.48 crore charge in Q2 FY26. Tax expense fell by ₹47.95 crore to ₹33.58 crore. Management said higher raw-material costs due to the West Asia crisis and continued volatility affected near-term profitability, while pricing, product mix and internal efficiencies were used to manage the pressure.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue rose 11.5% to ₹8,786.97 crore from ₹7,880.25 crore in H1 FY26, while total income increased 11.2% to ₹8,805.62 crore from ₹7,916.18 crore. Profit before tax fell 71.2% to ₹147.33 crore from ₹512.15 crore.

Profit after tax declined 72.0% to ₹109.16 crore from ₹390.21 crore, and basic EPS fell 72.9% to ₹3.83 from ₹14.11. The interim results filed with the BSE showed an exceptional charge of ₹1.46 crore in H1 FY27, against ₹5.10 crore in H1 FY26.

What do the balance sheet and cash flow show?

Total assets increased to ₹17,760.31 crore as of 30 September 2026 from ₹15,995.86 crore at 31 March 2026. Total equity was ₹6,065.99 crore, compared with ₹6,060.16 crore, while borrowings rose to ₹5,986.79 crore from ₹4,746.0 crore. Cash and cash equivalents fell to ₹156.91 crore from ₹236.67 crore; inventories were ₹3,415.07 crore and trade receivables were ₹3,562.60 crore.

H1 FY27 operating cash flow was negative ₹145.55 crore, compared with positive ₹866.15 crore in H1 FY26. Investing cash flow was negative ₹828.95 crore against negative ₹405.12 crore, while financing cash flow was positive ₹892.95 crore against negative ₹512.35 crore. Capital expenditure was ₹813.0 crore, compared with ₹611.73 crore a year earlier.

How has JK Tyre & Industries done over the last 8 quarters?

Revenue rose year on year in each of the last seven quarters. It reached ₹4,840.73 crore in Q2 FY27, the highest point in the reported series, after falling to ₹3,946.24 crore in Q1 FY27. Profit after tax was ₹65.07 crore in Q2 FY27, above ₹44.09 crore in the previous quarter but below ₹226.86 crore in Q2 FY26.

EBITDA margin increased from 6.5% in Q1 FY27 to 6.9% in Q2 FY27, but remained below its 13.5% peak in Q3 FY26. The lowest margin in the series was 6.5%, while profit after tax bottomed at ₹44.09 crore in Q1 FY27.

Which businesses drove the quarter?

India segment revenue was ₹4,453.19 crore in Q2 FY27, up 26.6% from ₹3,516.23 crore in Q2 FY26. Segment EBIT fell to ₹208.08 crore from ₹386.53 crore, and the reported segment margin was 4.7%.

Mexico segment revenue fell 25.1% to ₹478.31 crore from ₹638.77 crore, while EBIT declined to ₹7.06 crore from ₹32.60 crore; the reported margin was 1.5%. Others revenue was ₹0.61 crore, down 10.3%, with EBIT of negative ₹0.11 crore and a reported margin of negative 18.0%.

What else did the company announce?

The board approved the consolidated and standalone unaudited results for the quarter and half year ended 30 September 2026 on 23 October 2026. It also approved the re-appointment of Dr. Arun Kumar Bajoria as Whole-time Director with the designation Director & President – International for two years from 20 January 2027, subject to shareholder approval.

The same-day investor presentation reported that consolidated Q2 FY27 sales rose 20% while profit after tax fell 73%. The filing did not announce a dividend or a fund raise.

What did JK Tyre & Industries' management say?

The Managing Director said India utilisation remained above 90%, OE sales rose 65%, and overall domestic sales rose 32% year on year. Management also identified crude-linked input inflation, pass-through delays, working-capital and capex needs, Mexico recovery, US trade conditions, and weaker farm and tractor demand as risks.

How did JK Tyre & Industries shares react?

After the filing appeared after market close, the stock was down 1.2% after five minutes, down 0.3% after 15 minutes and unchanged after 30 minutes. It closed 2.9% below its pre-results close on the reaction day, while the Tyres & Rubber Products industry median moved 0.3% lower.

By the next day's close, the stock was down 1.8% from its pre-results close, compared with a 0.8% rise for the industry median and a 3.3% rise for the Nifty Smallcap 250. By the fifth session, it was up 4.5% from the pre-results close, against a 0.1% fall for the industry median and a 3.7% rise for the market index. Earlier reaction-day moves included 4.5% on 26 May 2026 and 3.1% on 6 February 2026.