MRF shares flat ahead of Q2 results; will the company post solid numbers like CEAT, JK Tyre?

At the time of writing this article, the stock was trading at ₹1,58,550, up 0.15% on the NSE.

MRF Q1 results

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.

CEAT Ltd

Tyre maker CEAT on Friday reported a 54% year-on-year (YoY) increase in its consolidated net profit to ₹186 crore for the second quarter ended September 30, 2025.

The company reported a net profit of ₹121 crore in the July-September quarter of the last fiscal.

Revenue from operations rose to ₹3,773 crore for the second quarter as against ₹3,304 crore seen in the year-ago period, CEAT Ltd said in a regulatory filing.

"We have maintained strong double-digit growth this quarter, with revenue rising by approximately 12%," CEAT MD & CEO Arnab Banerjee said.

One of the key developments in this quarter has been a reduction in GST rates on tyres and vehicles, which the company expects will have a positive impact on demand across domestic categories, he added.

"Looking ahead, with a positive growth momentum, we look forward to double-digit growth in the second half of the year," Banerjee said.

JK Tyre & Industries

JK Tyre & Industries Ltd on Monday reported a 62.33% jump in consolidated net profit to ₹226.86 crore in the second quarter ended September 30, 2025 (Q2 FY26), riding on strong revenue.

The company had posted a consolidated net profit of ₹139.75 crore in the corresponding period last fiscal, JK Tyre & Industries Ltd said in a regulatory filing.

Consolidated revenue from operations in the second quarter stood at ₹4,011.31 crore as against ₹3,621.56 crore in the year-ago period, it added.

Total expenses in the quarter were higher at ₹3,714.05 crore as compared to ₹3,433.55 crore in the same period last fiscal year, the company said.

Commenting on the performance, JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said, "Domestic markets registered a growth of 15 per cent in volumes driven by a notable uptick across segments. Export volumes grew by 13 per cent over the previous quarter, despite the prevailing uncertainty around US tariff rates."

He further said, "This growth reflects our superior product quality offerings, deeper penetration in existing markets and introduction of higher margin products for diversifying into new geographies."

Both Cavendish (India) and Tornel (Mexico) witnessed a significant improvement in their performance in Q2 and added to the overall financials of the company, JK Tyre said.

Singhania said GST 2.0 will go a long way in boosting demand and ultimately economic growth.

On the outlook, the company said, "With high-frequency indicators pointing towards a pickup in economic activity, we believe the automobile sector is on a strong growth track and will create higher demand for tyres across segments going ahead.