JK Tyre Q4 Net Profit Rises 83%; Approves Rs 4,980 Crore Capacity Expansion Plan

JK Tyre & Industries reported an 83 percent year-on-year increase in consolidated net profit for the fourth quarter of FY2026 and announced a Rs 4,980 crore capacity expansion programme for truck, bus and passenger car radial tyres as it prepares for rising domestic demand.

The company’s board approved phased expansion of Truck & Bus Radial (TBR) tyre capacity at its Chennai Tyre Plant and Vikrant Tyre Plant, along with Passenger Car Radial (PCR) tyre expansion at the Chennai facility. The proposed expansion will increase TBR and PCR capacity by 24 percent by FY2030.

JK Tyre said the projects would be funded through internal accruals and debt. The company currently has a combined TBR and PCR capacity of 210 lakh tyres per annum, including capacities under implementation, with utilisation levels running at over 90 percent.

The company said the expansion was aimed at maintaining market presence as the Indian tyre industry continues to witness strong demand across segments.

For the January–March quarter, JK Tyre posted consolidated revenue of Rs 4,233 crore, while EBITDA rose 42 percent year-on-year to Rs 546 crore. EBITDA margin for the quarter stood at 12.9 percent. Profit before tax came in at Rs 277 crore, while profit after tax increased to Rs 188 crore.

For the full financial year FY2026, consolidated revenue rose 11 percent year-on-year to Rs 16,384 crore. EBITDA increased 25 percent to Rs 2,089 crore, with EBITDA margin at 12.8 percent. Profit after tax for the year stood at Rs 774 crore, while profit before tax reached Rs 1,043 crore.

The board has also recommended a dividend of 200 percent, or Rs 4 per equity share.

Chairman and Managing Director Raghupati Singhania said FY2026 was a record year for the company, with growth supported by GST and personal tax reforms, lower interest rates, improved economic activity and festive season demand.

The company said sales volumes in India increased 21 percent year-on-year across segments during the fourth quarter, led by 42 percent growth in the original equipment segment. Exports remained stable despite geopolitical uncertainty, including the ongoing conflict in West Asia.

JK Tyre added that its Mexico subsidiary, JK Tornel, contributed to consolidated earnings during the quarter. The company also said it continued to focus on higher value-added products for domestic and export markets as it prepares for FY2027 amid rising input costs and global volatility.