The tyre maker is optimistic about domestic and export markets; sees limited impact from U.S. tariffs.
20 May 2025 | 721 Views | By Darshan Nakhwa
JK Tyre & Industries Ltd expects to clock double-digit revenue growth in FY26, driven by anticipated growth across vehicle segments and replacement demand. The company’s optimism stems from expectations of ample opportunities in both domestic and export markets. The tyre maker has also lined up maintenance capex of ₹250–300 crore ...
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JK Tyre & Industries Ltd expects to clock double-digit revenue growth in FY26, driven by anticipated growth across vehicle segments and replacement demand. The company’s optimism stems from expectations of ample opportunities in both domestic and export markets. The tyre maker has also lined up maintenance capex of ₹250–300 crore for FY26, in addition to the overall capital expenditure of ₹1,400 crore announced for FY25 and FY26 last year.
"The overall tyre industry is projected to grow at about 6% to 8% in FY26, in line with GDP growth, but we are targeting double-digit growth," said Sanjeev Aggarwal, Chief Financial Officer of JK Tyre. “With ample opportunities in both domestic and export markets and new PCR (passenger car radial) capacities coming onstream, we are confident of double-digit revenue growth.”
Managing Director Anshuman Singhania expressed confidence in sustained growth, citing several favorable factors, including the government's focus on infrastructure development, upcoming vehicle launches, potential interest rate reductions, and expectations of a normal monsoon season.
For FY25, JK Tyre reported weak consolidated financial performance. The company posted revenue from operations of ₹14,692.92 crore, down from ₹15,001.78 crore in FY24. Its operating profit (PBIDT) for the year stood at ₹1,677.83 crore, lower than ₹2,121.95 crore in FY24, mainly due to higher raw material costs. The company’s profit after tax (attributable to owners) fell significantly to ₹495.04 crore in FY25, from ₹786.23 crore in the previous year.
Regarding the company’s capex plan, the management said it is being deployed across three key product lines: truck-bus radial tyres (TBR), all-steel light truck radials (LTR), and passenger car radials (PCR). Production under the LTR category will commence by July 2025, followed by PCR in September and TBR by November.
“We are expanding our capabilities in high rim sizes in India, particularly in the replacement market. This will help us double our growth and improve the product mix,” said Singhania. “In the commercial segment, our recently launched XM, XD, and XF tyres are already gaining traction.”
JK Tyre expects a broad-based pickup in vehicle sales across categories. The company has forecasted mid-single-digit growth in the truck segment, a strong single-digit rise in passenger vehicles led by new launches, and high single-digit growth in the two- and three-wheeler segments. Tractor demand is expected to rise in the mid-single digits on the back of a favorable monsoon.
“We are seeing strong momentum in infrastructure and core sectors like cement, mining, and steel, which is likely to support OEM demand across commercial vehicles,” said Singhania.
On the replacement side, the company expects mid-single-digit growth in commercial vehicles and high single-digit growth in the passenger and two-wheeler segments.
The U.S. recently imposed a 25% tariff on truck and passenger radials and 10% on other tyre categories, raising concerns about the competitiveness of Indian tyre exports. However, JK Tyre sees a silver lining.
"Despite the new tariffs, India still enjoys a relatively favorable position compared to competitors like Thailand and Vietnam, which face even higher duties,” said Singhania.
Furthermore, the company’s exposure to other regions like Latin America, the Middle East, Europe, Southeast Asia, and other countries is expected to help offset the impact on exports due to U.S. tariffs, JK Tyre’s management said. The company exports to more than 100 countries. Its export volumes grew 4% sequentially in the March quarter, underlining sustained demand.
JK Tyre operates 11 manufacturing plants—nine in India and two in Mexico—with a combined annual capacity of 35 million tyres. It also boasts a distribution network of over 6,000 dealers and more than 900 branded retail outlets.
To reduce raw material dependency, the company is expanding its natural rubber procurement from plantations in the Northeast. About 75,000 hectares have already been developed as part of a 2 lakh-hectare initiative.
“We’ve seen a 2.5% decline in raw material prices from the previous quarter and expect further stability,” said Singhania.
Despite a 10% rise in raw material costs last year, which the company couldn’t fully pass on to customers, JK Tyre remains optimistic about improving its financial performance in FY26, riding on healthy demand and new capacity ramp-ups.