MRF Limited reported a 26.6% decline in net profit from continuing operations for the quarter ended 30th September 2026, with consolidated profit after tax coming in at Rs 386.99 crore compared to Rs 527.43 crore in the same quarter of the previous year. On a standalone basis, net profit for the quarter stood at Rs 369.15 crore, down 27.8% from Rs 511.59 crore in Q2 FY26.
Revenue from operations rose 17.4% year-on-year to Rs 8,660.19 crore, up from Rs 7,378.72 crore in Q2 FY26, while total income including other income of Rs 131.39 crore stood at Rs 8,791.58 crore. Sequentially, revenue grew modestly from Rs 8,415.50 crore in Q1 FY27. On a standalone basis, revenue from operations grew 17.6% to Rs 8,523.96 crore from Rs 7,249.68 crore, with total income at Rs 8,651.63 crore.
The sharp fall in profitability despite healthy revenue growth was driven primarily by a steep rise in input costs. Cost of materials consumed jumped to Rs 6,552.57 crore from Rs 4,577.49 crore in Q2 FY26, an increase of approximately 43% year-on-year, compressing margins significantly. The standalone figure showed a similar trend, with materials cost rising to Rs 6,538.07 crore from Rs 4,543.23 crore. Total expenses for the quarter rose to Rs 8,269.77 crore from Rs 6,788.55 crore in Q2 FY26, against standalone total expenses of Rs 8,153.50 crore versus Rs 6,673.97 crore a year earlier.
Profit before tax for the quarter stood at Rs 521.81 crore, down from Rs 700.45 crore in Q2 FY26, with the standalone figure at Rs 498.13 crore against Rs 682.41 crore. Total comprehensive income attributable to owners of the company for the quarter was Rs 417.19 crore, compared to Rs 540.13 crore in Q2 FY26, while the standalone figure stood at Rs 393.17 crore versus Rs 518.49 crore.
For the half year ended 30th September 2026, revenue from operations grew 13.4% to Rs 17,075.69 crore from Rs 15,054.36 crore in the corresponding period of the previous year. Net profit for the half year declined to Rs 882.34 crore from Rs 1,029.25 crore, a fall of approximately 14.3%. The standalone numbers for the first half showed revenue from operations at Rs 16,815.52 crore, up from Rs 14,809.96 crore, and net profit at Rs 843.52 crore against Rs 995.82 crore.
Basic and diluted earnings per share for continuing operations for Q2 FY27 stood at Rs 912.46, compared to Rs 1,243.60 in Q2 FY26. For the first half, EPS was Rs 2,080.43 against Rs 2,426.82 in the year-ago period. The standalone EPS for Q2 FY27 was Rs 870.40, down from Rs 1,206.26, while the half-year standalone EPS stood at Rs 1,988.90 compared to Rs 2,348.00.
Total assets as at 30th September 2026 stood at Rs 34,912.31 crore, up from Rs 31,953.51 crore as at 31st March 2026, with total equity at Rs 21,774.07 crore against Rs 20,974.75 crore at the end of FY26. On a standalone basis, total assets grew to Rs 34,190.39 crore from Rs 31,296.46 crore, with total equity at Rs 21,207.75 crore.
Inventories increased sharply over the period. Standalone inventories rose to Rs 7,083.63 crore as at 30th September 2026 from Rs 5,337.66 crore as at 31st March 2026, reflecting a build-up in finished goods and raw materials, with the consolidated figure rising to Rs 7,163.15 crore from Rs 5,416.82 crore. The standalone cash flow statement shows inventories of finished goods and raw materials together consumed Rs 1,745.97 crore in cash during the half year, against a net inflow in the prior year period.
Net cash from operating activities on a standalone basis fell to Rs 1,238.76 crore for the half year from Rs 2,015.93 crore in H1 FY26, while on a consolidated basis it declined more sharply to Rs 634.16 crore from Rs 1,869.48 crore. Capital expenditure on a standalone basis stood at Rs 1,001.60 crore for the half year, up from Rs 618.42 crore in the year-ago period.
The results include the performance of six subsidiaries: MRF Corp Limited, MRF Lanka (Private) Limited, MRF SG Pte Ltd and MRF Foundation, all wholly owned, as well as MRF DB–FZCO as a step-down subsidiary and MRF International Limited as a subsidiary. Two subsidiaries and one step-down subsidiary together accounted for the group's share of total assets of Rs 571.07 crore as at 30th September 2026, with combined revenues of Rs 244.86 crore and net profit after tax of Rs 34.97 crore for the half year.
The board of directors, at its meeting held on 10th November 2026, declared an interim dividend of Rs 3 per equity share of Rs 10 face value, representing 30% of face value, for the financial year ending 31st March 2027. The record date has been fixed as 17th November 2026, with payment to be made on or after 1st December 2026.