MRF Q1 results: Net profit declines over 12% YoY to ₹500 crore; EBITDA margin shrinks

Tyre major Madras Rubber Factory Ltd (MRF) on Tuesday, August 12, reported a 12.35% year-on-year (YoY) decline in its consolidated net profit to ₹500.47 crore in the June quarter of the 2025-26 financial year (Q1FY26).

In the corresponding period a year earlier, it had clocked a profit of ₹571.02 crore. The profit for the quarter was impacted by an increase in input costs.

The first quarter of the fiscal year normally sees an uptick in demand for vehicles, and therefore sales to OEMs improve along with improvement in replacement demand. However, tariff issues in April, followed by a war in May and early monsoons, impacted the overall market sentiments, the company said in a regulatory filing.

April 2025 started with a tariff issue, which was followed by a war in May and then early monsoons.

Its revenue from operations surged 6.66% YoY to ₹7,675.69 crore during the quarter under review, compared to ₹7,196.45 crore in the first quarter of FY25.

Original Equipment (OE) vehicle sales across categories were negative or flat except for the farm segment, which remained unaffected. The firm's total income grew by 7% year on year and 9% over the previous quarter, it added.

At an operational level, the company's EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operational profit, decreased by 7.62% YoY to ₹1,071 crore in Q1FY26. In the first quarter of the previous fiscal year, its EBITDA stood at ₹1,160 crore.

Its EBITDA margin shrank to 13.96% during the reporting quarter, as against 16.11% in Q1FY25.

MRF stock performance

Following the result announcement, shares of MRF fell 3.49% to an intraday low of ₹1,37,215 apiece on the National Stock Exchange (NSE) on Tuesday.

At around 1:55 pm, the scrip was trading 0.57% lower at ₹1,41,355 per equity share.

MRF, India’s highest-priced stock, fell 2.19% over the previous week and 4.36% since the beginning of August. The scrip surged 26.34% in the June quarter of FY26 and 8.13% on a year-to-date basis.

While the stock hit a 52-week high of ₹1,53,000 on July 16, 2025, it reached a year’s low of ₹1,02,124.05 apiece on March 5, 2025.

MRF has a total market capitalisation of ₹59,910.39 crore as of August 12, 2025, as per data on the NSE.

MRF Q4 result

During the fourth quarter of FY25, the company’s consolidated net profit (attributable to owners of the company) surged 33% YoY to ₹492.72 crore, compared to ₹370.52 crore in Q4FY24.

Its revenue from operations stood at ₹7,074.82 crore, jumping 11.4% YoY from ₹6,349.36 crore in the year-ago period.