JK Tyre & Industries (530007) Q1 25/26 earnings summary

Executive summary

• Achieved best-ever domestic performance with double-digit revenue growth, driven by innovative and premium products, strong brand-building, and a leading position in India’s tyre market with global reach.

• Consolidated Q1 FY26 revenue was ₹3,891 crore, up 6% year-on-year and 3% sequentially; net profit after tax reached ₹163.35 crore, up from Q4 but down year-over-year.

• Maintained strong R&D focus, launched new EV and green tyres, and achieved significant sustainability milestones, including a 70% reduction in GHG emissions by 2025.

• Recognized as a Superbrand for the 10th time, received multiple marketing awards, and secured 'Best in Class' ESG rating for the second consecutive year.

• Total comprehensive income for Q1 FY26 was ₹208.62 crore, up from Q4 FY25.

Financial highlights

• Q1 FY26 consolidated revenue was ₹3,891 crore, EBITDA at ₹424 crore with a margin of 10.9%, and PAT at ₹155 crore; EPS at ₹6.03, up from Q4 FY25 but down from Q1 FY25.

• Net debt reduced to ₹3,862 crore from ₹4,081 crore in the previous quarter; net debt to equity at 0.74x and net debt to EBITDA at 2.4x.

• Cavendish Industries posted revenue of ₹800 crore and EBITDA of ₹51 crore in Q1.

• Net worth as of 30 June 2025 was ₹5,064.10 crore, up from ₹4,642.71 crore a year ago.

• FY25 consolidated revenue was ₹14,772 crore, down 2% year-over-year, with PAT at ₹516 crore, a 36% decline.

Outlook and guidance

• Focus on innovation, sustainability, expanding product lines including EV and green tyres, and continued investment in R&D.

• Expectation of continued margin improvement due to benign raw material prices and increased premium product mix.

• Double-digit revenue growth anticipated for the full year, led by replacement demand and infrastructure push.

• CapEx projects of ₹1,400 crore progressing on schedule, with new capacities to come online from Q3.

• Mexico business margins expected to normalize from Q2 onwards as export uncertainties subside.