JK Tyre & Industries (530007) Q2 25/26 earnings summary

Executive summary

• Achieved consolidated quarterly revenue of INR 4,026 crores in Q2 FY26, up 10% year-over-year, with H1 FY26 revenue at INR 7,916 crores, driven by strong domestic and export demand.

• Profit after tax for Q2 FY26 reached INR 223 crores, a 54% increase year-over-year; H1 FY26 PAT was INR 377 crores.

• Recognized for sustainability leadership, including top-tier ESG ratings, India's greenest tyre launch, and advanced EV tyre range.

• Robust growth across commercial, two-wheeler, farm, and export segments, with notable market share gains in OEM and replacement markets.

• Digital transformation advanced with new AI-powered customer support.

Financial highlights

• Q2 FY26 consolidated EBITDA was INR 536 crores, up 21% year-over-year, with margin improving to 13.3%.

• Q2 FY26 basic EPS rose to INR 8.08 from INR 4.93 year-over-year.

• Profit after tax for Q2 FY26 was INR 223 crores; cash profits for Q2 FY26 were INR 428 crores.

• Net debt increased to INR 4,201 crores, mainly due to higher working capital and project CapEx.

• Net cash flow from operating activities for H1 FY26 was INR 866.15 crores, a turnaround from a net outflow in H1 FY25.

Outlook and guidance

• Revenue growth guidance maintained at double-digit (10%) for the year, supported by strong demand and GST cuts.

• EBITDA margin expected to remain in the 13%-15% range over the next 2-3 quarters.

• Focus on expanding sustainable product offerings and leveraging R&D for future growth.

• Continued investment in renewable energy and decarbonization technologies.

• The company continues to focus on operational efficiency and cost management to sustain profitability.