Mumbai — JK Tyre & Industries reported a 73% year-over-year decline in consolidated net profit for the first quarter of fiscal 2027 as higher raw material costs linked to tensions in West Asia squeezed margins despite strong domestic volume growth.
The tire manufacturer posted net profit of Rs 44 crore for the June quarter, down from Rs 163 crore in the same period a year earlier, according to a stock exchange filing.
Revenue from operations increased 2% to Rs 3,946 crore from Rs 3,869 crore, supported by healthy demand across major domestic market segments.
Operating profitability, however, deteriorated significantly. Earnings before interest, taxes, depreciation and amortization fell 36% to Rs 258 crore from Rs 403 crore a year earlier, while the EBITDA margin contracted to 6.5% from 10.4%.
The company recorded a one-time gain of Rs 11 crore during the quarter, compared with Rs 12.6 crore a year earlier. Other income declined to Rs 9.4 crore from Rs 21.6 crore.
Investors reacted negatively to the results, with JK Tyre shares falling 5.76% to Rs 389.45 during the session.
Chairman and Managing Director Raghupati Singhania said business momentum remained steady, supported by demand across market segments, customer-focused initiatives, product offerings and execution.
Domestic volumes increased 25% from a year earlier. Replacement tire volumes rose 12%, while original equipment volumes surged 42%. The company also reported a larger contribution from premium, value-added products.
Singhania said geopolitical tensions in West Asia had driven a sharp increase in raw material prices, putting significant pressure on gross and operating margins.
Nearly 70% of the tire industry’s raw materials are petroleum-based, making manufacturers particularly sensitive to changes in crude oil prices, he said. (Source: IANS)
