JK Tyre Q4 net profit jumps 83% to ₹188 crore; FY26 revenue hits record ₹16,384 crore amid ₹4,980-crore expansion drive

JK Tyre & Industries posted a sharp rise in earnings for the March quarter and closed FY26 with its highest-ever annual revenue, underlining the strength of domestic demand and the company’s aggressive growth push in the radial tyre segment. The tyre maker reported an 83% year-on-year rise in consolidated profit after tax at ₹188 crore for Q4 FY26, while consolidated revenue for the quarter stood at ₹4,233 crore.

For the full financial year, JK Tyre reported record consolidated revenue of ₹16,384 crore, up 11% year-on-year, while EBITDA rose 25% to ₹2,089 crore. The homegrown tyremaker's net profit during the period came in at ₹774 crore, with profit before tax crossing the ₹1,000-crore mark at ₹1,043 crore.

The New-Delhi headquartered firm also announced a 200% dividend, equivalent to ₹4 per equity share, signalling confidence in cash flows despite a large capital expenditure pipeline.

Operating leverage drives margin recovery

JK Tyre’s operating performance improved significantly during the quarter as higher sales volumes, easing raw material pressures and a richer product mix boosted profitability. Q4 EBITDA climbed 42% year-on-year to ₹546 crore, while EBITDA margin stood at 12.9%

The company said domestic sales volumes rose 21% during the quarter, led by a robust 42% growth in the OE segment. Export demand remained stable despite geopolitical disruptions, including continued tensions in West Asia.

JK Tyre Chairman and Managing Director Raghupati Singhania described FY26 as a “landmark year” for the company, citing strong demand driven by GST and personal tax reforms, softer interest rates and improved economic activity.

JK Tyre also said its Mexico subsidiary, JK Tornel, contributed meaningfully to consolidated earnings, while the company continued to focus on premium and value-added products across domestic and export markets as it prepares for rising input costs and global volatility in FY27

₹4,980-crore capex targets 24% capacity expansion

Alongside its earnings, JK Tyre unveiled a ₹4,980-crore expansion programme aimed at scaling up truck and bus radial (TBR) and passenger car radial (PCR) tyre production capacities by 24% by FY30. The phased expansion, approved by the board under SEBI disclosure norms, will be undertaken at the company’s Chennai and Vikrant units and funded through a mix of internal accruals and debt.

The move comes at a time when capacity utilisation across JK Tyre’s TBR and PCR operations has already crossed 90% , indicating sustained pressure on existing manufacturing lines amid rising domestic demand. The company currently operates combined annual TBR and PCR capacity of 210 lakh tyres, including capacities under implementation.

The company’s India business delivered 21% growth during the March quarter, led by a sharp 42% in the OE segment, reflecting strong traction from automobile manufacturers and infrastructure-linked freight movement. JK Tyre is also betting on higher contribution from value-added and premium products, which are expected to support margins even as input costs begin inching upward.

Singhania stated that the company had “laid a strong foundation through capacity expansion and a greater focus on higher value-added products for both domestic and export markets,” adding that the investments position JK Tyre to drive profitable growth despite near-term volatility in raw material prices and global markets.