Tyre stock jumps 6% after reporting 59% YoY increase in net profit

Synopsis:
Shares of this company jumped more than 6% following the announcement of its Q2 results which highlighted a growth of 59% in its net profit.

This company is one of the leading tyre manufacturers in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments that includes Truck/Bus, LCV (Light commercial vehicles), Passenger Cars, MUV (Multi utility vehicles) and Tractors and its share were in focus today as the company declared its Q2 result which showcased growth metrics.

With a  market cap of Rs 11,670 crore , the shares of JK Tyre & Industries Ltd gained more than 6% and made an intraday high of Rs 439.85 compared to its previous day close of Rs 412.2. Today’s high also marks its  52 week high and the shares have given a return of  152% in the last 3 years.

Q2 Results highlights

JK Tyre & Industries Ltd in its Q2 FY26 results declared a sales of Rs 4,011 crore compared to Q2 FY25 which was at Rs 3,622 crore indicating a YoY growth rate of 10.76% and QoQ growth rate of 3.67% compared to Q1 FY26 sales of Rs 3,869 crore. 

The bigger highlight would be its net profit which grew by 59% YoY when we compare Q2 FY25  profit of Rs 140 crore with Q2 FY26 profit of Rs 227 crore. The QoQ net profit growth is at 39%.

The EBITDA for this quarter stood at Rs 536 crore which has increased by 13.3% . This Improved operational performance is a result of higher sales volumes along with softening raw material prices, apart from higher operational efficiencies.

About the company and outlook

JK Tyre is a leading Indian tyre manufacturer and among the top 20 globally, making a wide range of tyres for all vehicle types including cars, trucks and buses. As a pioneer of radial tyre technology in India, the company uses advanced methods with a strong focus on quality, innovation, and research to serve its customers. The company has expanded from one plant making half a million tyres to a global business with 11 facilities producing 35 million tyres annually.

Commenting on the results the CMD of JK tyres has said “”JK Tyre performed well in Q2FY26 supported by the growth momentum. Domestic markets registered a growth of 15% in volumes driven by notable uptick across segments”. “Export volumes grew by 13% over the previous quarter, despite the prevailing uncertainty around US Tariff rates. This growth reflects our superior product quality offerings, deeper penetration in existing markets and introduction of higher margin products for diversifying into new geographies”  He also said “GST 2.0 is indeed a very progressive step, it will go a long way in boosting demand and ultimately economic growth”.

The company has done a key product launch of a new EV tyre range called “jetway jux” which will give extra KM’s per charge , will have lowest noise in truck tyres (60 db) and will have enhanced safety and durability. With such product development the company seems to be ready for a positive future outlook but actual results are yet to be seen.

Written by Leon Mendonca

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