JK Tyre & Industries reported a weak performance for the June quarter of financial year 2027, with consolidated net profit plunging 73% year-on-year (YoY) to Rs 44 crore, compared with Rs 163 crore in Q1FY26.
The company reported a one-time gain of Rs 11 crore during the quarter, compared with a gain of Rs 12.6 crore in the year-ago period.
ALSO READ: Godrej Consumer Q1 Result: Net Profit Jumps 11%, Revenue Surges; Africa Business Grows 45%
Other income also declined to Rs 9.4 crore from Rs 21.6 crore YoY.
Revenue increased marginally by 2% YoY to Rs 3,946 crore from Rs 3,869 crore.
At the operating level, EBITDA declined 36% YoY to Rs 258 crore from Rs 403 crore, while EBITDA margin contracted to 6.5% from 10.4% in Q1FY26.
Last checked, the shares were trading under pressure, down 5.76% at Rs 389.45.
What Management Said
Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries, said the company continued its steady performance in Q1FY27, supported by strong demand momentum across segments. He said the performance was driven by a focus on customer centricity, product excellence and disciplined execution across markets.
Domestic volumes grew 25% YoY during the quarter, with replacement volumes rising 12% and original equipment (OE) volumes jumping 42%. The company also saw an increasing contribution from higher-value-added products.
However, Singhania said the continuing West Asia crisis led to a sharp increase in raw material prices, impacting gross and operating margins. He noted that around 70% of the tyre industry's raw materials are petro-based, making the sector highly vulnerable to oil price movements.
Looking ahead, Singhania said JK Tyre remains confident of improving its performance in FY27, with a sharper focus on operating leverage, cost reductions and increasing the share of premium products. The company is targeting double-digit revenue growth and higher profitability through strategic expansion.
JK Tyre & Industries is the flagship company of the JK Organisation and is among the top 20 tyre manufacturers globally. The company pioneered radial tyre technology in India, producing its first radial tyre in 1977, and is the market leader in the Truck Bus Radial segment.
The company provides end-to-end solutions across passenger vehicles, commercial vehicles, farm, off-the-road and two- and three-wheeler segments. It has 11 manufacturing facilities, nine in India and two in Mexico, with a combined capacity of over 38 million tyres annually.
JK Tyre has a network of more than 6,000 dealers and over 900 dedicated brand shops, including Steel Wheels, Truck Wheels and Xpress Wheels. It also exports to more than 100 countries through over 230 global distributors.
ALSO READ: BEML Q1 Results: Net Loss Narrows, FY26 Dividend Revised — Check Record Date
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
