Mumbai: MRF Ltd reported a sharp 121.4 percent year-on-year rise in standalone net profit to Rs 679.1 crore for the third quarter ended December 31, 2025, aided by strong revenue growth and operating leverage. Revenue from operations increased 15.3 percent YoY to Rs 7,933.7 crore in Q3 FY26. Sequentially, profit rose 32.8 percent from Rs 511.6 crore in Q2 FY26, underlining a strong three-quarter performance trajectory.
The tyre major’s total income for the quarter climbed to Rs 8,056.8 crore, compared with Rs 7,356.4 crore in the preceding quarter and Rs 6,979.8 crore a year earlier. Profit before tax stood at Rs 900.5 crore in Q3 FY26, significantly higher than Rs 682.4 crore in Q2 FY26 and Rs 413.1 crore in Q3 FY25, reflecting improved cost efficiencies and scale benefits amid steady demand.
Sequential growth builds momentum
On a quarter-on-quarter basis, revenue from operations increased by nearly Rs 684 crore, while operating performance improved despite higher employee costs and depreciation. Total expenses rose to Rs 7,079.0 crore in Q3 FY26 from Rs 6,674.0 crore in Q2 FY26, mainly due to increased material consumption and inventory adjustments. Operating margin expanded to 11.7 percent in the quarter from 8.9 percent in the previous quarter, indicating better absorption of fixed costs.
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The company reported an exceptional expense of Rs 77.2 crore, linked to a one-time increase in gratuity and leave liabilities following the implementation of new labour codes. Even after accounting for this item, net profitability remained robust.
Key drivers and shareholder payout
Earnings per share (EPS) for the quarter rose to Rs 1,601.33, up from Rs 1,206.26 in Q2 FY26 and Rs 723.20 in Q3 FY25, mirroring the sharp rise in profitability. The board declared a second interim dividend of Rs 3 per equity share, with February 13, 2026 fixed as the record date.
Nine-month performance remains strong
For the nine months ended December 2025, MRF posted a standalone net profit of Rs 1,675.0 crore, compared with Rs 1,324.7 crore in the corresponding period last year. Revenue from operations for the nine-month period rose to Rs 22,743.7 crore, reinforcing sustained demand momentum and operational resilience heading into the final quarter of FY26.
Disclaimer: This article is based on official unaudited financial results disclosed by MRF Limited for Q3 FY26. All data has been verified from source statements, with no forward-looking commentary included.
