MRF Q1 Profit Slips To ₹495 Crore, Higher Input Costs Weigh On Margins

Mumbai: Tyre manufacturer MRF Limited reported a marginal 1.3 percent year-on-year decline in consolidated net profit to Rs 495.35 crore for the quarter ended 30 June 2026, compared with Rs 501.82 crore in the corresponding period last year.

Higher raw material costs weighed on profitability despite a strong rise in income and healthy demand across key market segments.

Income Rises

Consolidated total income increased 10.3 percent to Rs 8,610.56 crore during Q1 FY27 from Rs 7,804.23 crore in Q1 FY26, reflecting firm demand for the company’s products.

However, consolidated profit before tax fell to Rs 649.69 crore from Rs 671.83 crore a year earlier. The company made a tax provision of Rs 154.34 crore for the quarter, resulting in the reported net profit of Rs 495.35 crore.

Demand Remains Healthy

MRF said demand from original equipment manufacturers remained buoyant during the quarter, supported by strong vehicle sales across segments. Replacement market sales were also healthy, strengthening the company’s overall operating performance.

The demand momentum helped lift total income, although cost pressures prevented the revenue growth from translating into higher earnings. Net profit declined by Rs 6.47 crore from the year-ago quarter.

Costs Pressure Margins

The tyre maker said elevated input costs adversely affected profitability during the reporting period. Raw material prices remained firm amid the continuing conflict in the Middle East, adding pressure to production costs and operating margins.

MRF implemented price increases and pursued cost-management measures to partly absorb the impact of dearer inputs. Nevertheless, the company expects elevated raw material costs to continue affecting margins in the near term.

The results indicate that while demand conditions remain supportive across both original equipment and replacement channels, the company’s earnings outlook will depend significantly on commodity prices and its ability to pass additional costs to customers over the coming quarters amid geopolitical uncertainty worldwide.

Disclaimer: This article is based on company exchange filings and is intended solely for informational purposes. Investors should independently assess the relevant risks before making investment decisions.