JK Tyre Reports 3.7-Fold Surge in Q3 Profit Amid Strong Demand and Margin Expansion

JK Tyre & Industries Limited reported a sharp 3.7-fold increase in net profit for the third quarter ended December 31, 2025, reaching Rs 209 crore compared to Rs 57 crore in the corresponding period last year, reflecting strong operational performance across business segments.

The company's consolidated total revenues stood at Rs 4,235 crore for the quarter, with EBITDA climbing to Rs 583 crore, translating to a margin of 13.8% – a substantial expansion of 470 basis points year-on-year.

Domestic Market Drives Growth

The domestic business segment demonstrated robust momentum with 16% year-on-year growth, supported by both original equipment manufacturer (OEM) and replacement channels. The replacement segment grew 12%, while OEM sales surged 27%, indicating broad-based demand recovery.

Dr. Raghupati Singhania, Chairman & Managing Director, attributed the performance to multiple factors including GST-led reforms, festive season demand, and improved rural sentiment. "Strong traction across both OEM and replacement segments once again underscores customers' enduring trust in the JK Tyre brand," he stated.

Margin Improvement Through Strategic Initiatives

The significant EBITDA margin expansion was driven by the company's focus on product premiumisation, operational leverage, and execution excellence. Benign raw material prices during the quarter also contributed favorably to profitability.

The company successfully completed the merger of Cavendish Industries Limited (CIL) during the quarter, following receipt of all statutory approvals. Acquired in 2016, CIL's capacity utilization improved from approximately 30% to over 95% under JK Tyre's management, marking another successful turnaround alongside Vikrant Tyres and JK Tornel, Mexico.

JK Tyre's Mexican subsidiary, JK Tornel, also delivered improved financial performance, strengthening consolidated results. Meanwhile, exports demonstrated resilience despite ongoing geopolitical uncertainties.

Sustainability Recognition and Future Outlook

The company received a Silver rating in the latest EcoVadis ESG assessment, placing it among the top 7% of companies globally. This recognition aligns with JK Tyre's stated vision of becoming a green company by 2050.

Looking ahead to Q4 and FY27, Dr. Singhania expressed confidence in sustained momentum, citing healthy demand across segments, positive consumer sentiment, and lower interest rates as favorable tailwinds.

The company emphasized its commitment to leveraging emerging technologies and pursuing process excellence to strengthen its competitive position in the global automotive ecosystem, supported by India's strong talent pool and manufacturing capabilities.

JK Tyre operates 11 manufacturing facilities globally – nine in India and two in Mexico – with a combined annual production capacity of over 35 million tyres. The company serves domestic and international markets through a network of 6,000+ dealers and exports to over 100 countries.