JK Tyre Profit After Tax Drops 73% To ₹44.09 Crore In Q1 FY27

Mumbai: JK Tyre & Industries on Thursday announced its consolidated financial results for the quarter ended 30 June 2026, with profit after tax falling sharply to ₹44.09 crore from ₹163.35 crore in the corresponding quarter of the previous fiscal year.

Revenue Performance

The company's consolidated revenue from operations for Q1 FY27 stood at ₹3,946.24 crore, a slight decrease from ₹3,868.94 crore reported in Q1 FY26. Total income for the quarter was ₹3,955.66 crore, compared to ₹3,890.57 crore in the year-ago period.

Expenses and Operating Profit

Total expenses for the first quarter rose to ₹3,912.75 crore from ₹3,695.08 crore in the same quarter last year. Operating profit (PBIDT) for the quarter was ₹267.64 crore, down from ₹423.76 crore in Q1 FY26.

Earnings Per Share

Consolidated basic earnings per share (EPS) for the quarter ended 30 June 2026 was ₹1.55, a significant drop from ₹5.74 in Q1 FY26.

Exceptional Items

Exceptional items for the current quarter amounted to a gain of ₹10.85 crore. The company noted that the operations at JK Tornel, Mexico, were impacted by geopolitical disruptions and IR issues, leading to constrained availability of key inputs and affecting productivity.

Management Commentary

Raghupati Singhania, Chairman and Managing Director, said the company continued its steady performance with a consolidated turnover of ₹3,956 crore, supported by strong demand momentum.

He added that the West Asia crisis led to a sharp increase in raw material prices, impacting gross and operating margins, given that approximately 70 per cent of the tyre industry's raw materials are petro-based.

Outlook

Singhania expressed confidence in improving performance in FY27 through a focus on operating leverage, cost reductions, and an increasing share of premium products, aiming for double-digit revenue growth and increased profitability through strategic expansions.

Other Income and Tax

Other income for Q1 FY27 was ₹9.42 crore, compared to ₹21.63 crore in the year-ago quarter. The company reported a profit before tax of ₹53.76 crore for the quarter, a decrease from ₹208.07 crore in Q1 FY26. Current tax for the quarter was a negative ₹3.58 crore, while deferred tax was ₹14.63 crore.

Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.