JK Tyre & Industries (530007) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue was ₹3,956 crore, with EBITDA at ₹268 crore and PAT at ₹43 crore, reflecting steady year-over-year topline growth but a sequential decline in profitability due to higher input costs.

• Domestic sales volume grew 25% year-over-year, with OEM volumes up 42% and replacement market also strong.

• The company focused on customer centricity, product excellence, and execution, with higher value-added products and ongoing investments in digital, manufacturing, and EV-oriented portfolios.

• Despite geopolitical disruptions and higher input costs, operational efficiency measures and price increases were implemented to offset margin pressures.

• Maintains a global presence with 11 manufacturing facilities, over 38 million tyre capacity, and operations in 100+ countries.

Financial highlights

• Q1 FY27 consolidated revenue rose 2% year-over-year to ₹3,956 crore; EBITDA was ₹268 crore, down from ₹424 crore in Q1 FY26.

• EBITDA margin declined to 6.8% from 10.9% year-over-year and from 12.9% sequentially, mainly due to a 20% increase in raw material costs.

• PAT for Q1 FY27 was ₹43 crore, with EPS at ₹1.55, compared to ₹6.03 in Q1 FY26.

• Net debt as of June 30, 2026, was ₹4,945 crore, up ₹500 crore sequentially, mainly due to CapEx and working capital needs.

• FY26 consolidated total income reached ₹16,384 crore, up 11% year-over-year, with EBITDA at ₹2,089 crore and PAT at ₹774 crore.

Outlook and guidance

• Management expects double-digit revenue growth for FY27, with improved profitability through strategic expansions, price hikes, and increased share of premium products.

• Margins are expected to improve in the second half as raw material prices stabilize and price hikes take effect, targeting 10%-11% EBITDA margin for the year.

• Additional price hikes of 5%-6% are planned to offset input cost increases.

• Capacity expansion projects are underway, with a 7% increase in total capacity expected next year.

• Continued investments in R&D, green technologies, and expanding product portfolio, including EV and smart tyres.