JK Tyre Q1 profit plunges 73 pc to Rs 44 crore; shares fall nearly 6 pc

Mumbai, Aug 7 (AHN) JK Tyre & Industries on Friday reported a 73 per cent decline in earnings for the first quarter of FY27, as higher raw material costs amid the continuing West Asia crisis weighed heavily on profitability despite healthy volume growth and higher revenue.

The tyre maker posted a consolidated net profit of Rs 44 crore for the June quarter, down 73 per cent from Rs 163 crore in the corresponding period last financial year (Q1 FY26 ), according to its stock exchange filing.

The company also reported a one-time gain of Rs 11 crore during the quarter, compared with Rs 12.6 crore in the year-ago period, while other income declined to Rs 9.4 crore from Rs 21.6 crore.

Revenue from operations, however, rose marginally by 2 per cent year-on-year to Rs 3,946 crore from Rs 3,869 crore, supported by robust domestic demand across key segments.

Operating performance remained under pressure during the quarter. EBITDA fell 36 per cent year-on-year to Rs 258 crore from Rs 403 crore a year ago, while EBITDA margin narrowed sharply to 6.5 per cent from 10.4 per cent.

Following the earnings announcement, the company's shares came under selling pressure and were last trading 5.76 per cent lower at Rs 389.45.

Commenting on the performance, Chairman and Managing Director Raghupati Singhania said the company continued to witness steady business momentum during the quarter, backed by strong demand across market segments, customer-focused initiatives, product excellence and disciplined execution.

Domestic volumes registered a robust 25 per cent year-on-year growth during the quarter. Replacement tyre volumes increased 12 per cent, while original equipment (OE) volumes surged 42 per cent. The company also recorded a higher contribution from value-added premium products.

However, Singhania said the continuing geopolitical tensions in West Asia resulted in a sharp rise in raw material prices, significantly affecting gross and operating margins. He noted that nearly 70 per cent of the tyre industry's raw materials are petro-based, making the sector highly sensitive to fluctuations in crude oil prices.