Goodyear India Q2 FY27 Profit Rises 32% Despite Higher Expenses

Goodyear India reported a 31.6% year-on-year increase in profit after tax (PAT) to Rs 17.2 crore for the second quarter ended September 30, 2026, compared with Rs 13.1 crore in the corresponding period last year. Revenue from operations rose 9.2% to Rs 760.9 crore from Rs 696.5 crore in Q2 FY26.

However, the company's expenses increased at a faster rate than revenue during the quarter, rising 27.2% to Rs 742.1 crore from Rs 583.5 crore a year earlier. This limited the improvement in operating profitability, with profit before tax increasing to Rs 23.4 crore from Rs 17.5 crore.

The difference between revenue growth and expenditure growth was particularly evident in the company's material costs. Cost of materials consumed increased to Rs 368.3 crore from Rs 207 crore, while purchases of stock-in-trade rose to Rs 254.9 crore from Rs 202.7 crore. Other expenses also increased to Rs 114.2 crore from Rs 94.4 crore.

Employee benefit expenses stood at Rs 55.5 crore, compared with Rs 51.3 crore in the year-ago quarter.

Goodyear India's H1 FY27 Profit Declines 13%

For the six months ended September 30, 2026, Goodyear India's revenue from operations increased 18.8% to Rs 1,535.2 crore, compared with Rs 1,292.7 crore in the corresponding period last year.

However, total expenses rose 24.2% to Rs 1,521.7 crore, outpacing revenue growth. Consequently, profit before tax declined 34.5% to Rs 23.9 crore from Rs 36.5 crore, while PAT fell 12.8% to Rs 23.7 crore from Rs 27.2 crore in H1 FY26.

The half-year results indicate that the increase in expenditure has weighed on profitability despite higher revenue. The company reported total income of Rs 1,545.6 crore for the six-month period, against Rs 1,268.9 crore a year earlier.

Dividend and Other Financial Updates

The company's board had declared a final dividend of Rs 26.50 per equity share of face value Rs 10 for FY26 at its annual general meeting held on August 12, 2026.

Goodyear India also reported cash and cash equivalents of Rs 183.4 crore as of September 30, 2026, compared with Rs 231.3 crore at March 31, 2026.

Net cash generated from operating activities during H1 FY27 stood at Rs 24 crore, against Rs 45.5 crore in the corresponding period last year. The company also reported capital expenditure of approximately Rs 11.5 crore during the six-month period.