Expansion across TBR, LTBR and passenger car radial tyres to come on stream by Q2 FY28.
06 Feb 2026 | 335 Views | By Darshan Nakhwa
JK Tyre & Industries Ltd’s board today approved a Rs 1,130 crore investment to expand the capacity of truck and bus radial (TBR), all-steel light truck radial (LTBR) and passenger car radial (PCR) tyres, with the additional output slated to come on stream by the second quarter of the financial ...
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JK Tyre & Industries Ltd’s board today approved a Rs 1,130 crore investment to expand the capacity of truck and bus radial (TBR), all-steel light truck radial (LTBR) and passenger car radial (PCR) tyres, with the additional output slated to come on stream by the second quarter of the financial year 2027-28.
The company will add TBR capacity at its Vikrant Tyre Plant and Laksar Tyre Plant, while LTBR capacity will be expanded at the Vikrant facility. Additional PCR capacity will be created at the Banmore Tyre Plant, according to an exchange filing.
JK Tyre currently has an installed capacity of about 204 lakh tyres per year across these segments, including ongoing expansions. The latest investment will raise capacity by around 6.5%, or roughly 13.5 lakh tyres annually. The expansion will be funded through a mix of internal accruals and debt, the company said.
In the December quarter, JK Tyre reported a 3.7-fold rise in net profit to Rs 209 crore, compared with Rs 57 crore a year earlier, driven by improved operating performance across segments. Consolidated revenue stood at Rs 4,235 crore, while EBITDA rose to Rs 583 crore, translating into a margin of 13.8%—an expansion of 470 basis points year on year.
The margin improvement was supported by product premiumisation, operating leverage and benign raw material costs during the quarter. The domestic business recorded 16% year-on-year growth, led by strong traction in both original equipment manufacturer (OEM) and replacement channels. Replacement demand grew 12%, while OEM sales rose 27%, indicating a broad-based recovery.
Chairman and Managing Director Raghupati Singhania said the performance reflected supportive demand conditions, aided by GST-led reforms, festive buying and improving rural sentiment.