Tyre major reports strong earnings growth on higher margins, declares interim dividend; shares surge over 8 per cent
Tyre manufacturer MRF reported a sharp rise in earnings for the December quarter, with consolidated net profit more than doubling year-on-year. The company posted a profit of Rs 692 crore for Q3FY26, compared with Rs 315.46 crore in the same period last year. Profit also improved sequentially, rising 31.6 per cent from Rs 525.64 crore in the previous quarter.
The strong performance was driven by a significant expansion in profitability, as net profit margin widened to 8.46 per cent from 4.44 per cent a year earlier. However, the company noted a one-time expense of Rs 77.2 crore linked to higher gratuity and leave liabilities following the rollout of new labour codes.
Revenue from operations grew 15 per cent year-on-year to Rs 8,050.43 crore, up from Rs 7,000.82 crore in the corresponding quarter last year. On a quarter-on-quarter basis, revenue increased 9.1 per cent from Rs 7,378.72 crore.
MRF’s top line was supported by healthy growth in the automobile sector. Industry data showed overall vehicle sales rose 17.6 per cent during the quarter, led by a 20.6 per cent increase in passenger vehicle sales and nearly 17 per cent growth in two-wheeler volumes.
Separately, the company unvieled an interim dividend of Rs 3 per share and fixed 13 February as the record date.
Following the earnings reporting, MRF shares gained 8.57 per cent to trade at Rs 1,46,495 on the BSE at 4:10 pm on Friday.
