JK Tyre & Industries (530007) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever consolidated revenue of INR 4,235 crore in Q3 FY26, up 15% year-over-year, driven by strong volume growth across segments and operational excellence.

• Profit after tax surged 3.7x year-over-year to INR 209 crore, with EPS increasing to INR 7.29 per share.

• Completed merger of Cavendish Industries Limited, enhancing operational synergies, capacity utilization, and financial performance.

• Recognized for sustainability and innovation, including launches of embedded Smart Tyres and India's greenest tyre, and received top ESG ratings.

• International subsidiary JK Tornel (Mexico) delivered significant improvement, strengthening consolidated results.

Financial highlights

• Q3 FY26 consolidated revenue: INR 4,235 crore (+15% YoY); EBITDA: INR 583 crore (+74% YoY); EBITDA margin: 13.8% (+470 bps YoY).

• PAT: INR 209 crore (+3.7x YoY); EPS: INR 7.29 (+4x YoY); cash profit: INR 478 crore.

• JK Tornel (Mexico) Q3 revenue: INR 616 crore (+21% YoY); EBITDA: INR 58 crore (+45% YoY); PAT: INR 42 crore.

• 9MFY26 consolidated total income: INR 12,151 crore (+11% YoY); PAT: INR 586 crore (+42% YoY); basic EPS: INR 20.99.

• Net debt as of Dec 31: INR 4,183 crore; debt-to-equity: 0.71; debt-to-EBITDA: 2.17x.

Outlook and guidance

• Expecting raw material prices to remain range-bound with a 1%-2% increase; margins anticipated to remain intact due to volume push and premiumization.

• Targeting mid-double-digit revenue growth if current momentum continues; EBITDA margin guidance maintained at 13%-15% for FY27.

• CapEx of INR 1,130 crore planned for capacity expansion over 1.5 years, part of a larger INR 50 billion five-year plan.

• Focus on expanding sustainable product offerings, leveraging R&D, and strengthening global OEM relationships.

• Management confident entering Q4, citing healthy demand, positive sentiment, and macro tailwinds.