JK Tyre & Industries Ltd has released its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, disclosing its environmental, social, and governance performance alongside operational metrics. The company, which operates 11 manufacturing plants nationally and internationally, reported a total workforce of 17,917, comprising 2,603 employees and 15,314 workers. The report highlights the company's sustainability initiatives, including its commitment to reducing carbon emission intensity by 50% by 2030 and achieving net zero by 2050.

The company’s operations are primarily focused on the manufacturing and sale of automotive tyres, tubes, and flaps, which accounted for 100% of its turnover. JK Tyre serves 29 states across India and exports to over 100 countries, with exports contributing 11.93% to the total turnover. The report notes that the figures for FY 2025-26 reflect the operations of the merged entity following the Scheme of Amalgamation of Cavendish Industries Ltd., effective December 22, 2025.

Environmental Performance

JK Tyre has implemented Zero Liquid Discharge (ZLD) systems across all its manufacturing facilities. The company reported specific energy consumption and greenhouse gas emissions data, verified by BSI India. Key environmental projects undertaken during the year included condensate recovery for fuel efficiency, thermal insulation in the curing process, and the installation of variable frequency drives to optimize power consumption. The company also commissioned biomass-feeding systems in process boilers at two locations to substitute fossil coal.

Social and Governance Metrics

The report provides detailed statistics on the company's workforce. Women comprised 2.61% of the total employees and 3.21% of the total workers. The Board of Directors included 2 female members out of 10, representing 20% representation. The company reported that 100% of permanent employees and other-than-permanent employees were covered by health and accident insurance. For workers, 79.67% of permanent workers and 100% of other-than-permanent workers were covered by health insurance.

Key Workforce Statistics

The Corporate Social Responsibility and Sustainability Committee of the Board, chaired by Dr. Raghupati Singhania, oversees the implementation of business responsibility policies. The company has identified material issues such as emissions, energy management, and water security, and has set targets aligned with the Science Based Targets initiative (SBTi). The report also confirms that the company has not been involved in any material fines or penalties during the financial year, aside from a pending legal matter regarding a Competition Commission of India order from 2018.

JK Tyre & Industries Ltd reported a robust financial performance for the financial year ended March 31, 2026, driven by high asset utilisation and premiumisation-led mix improvement. The company recorded its highest revenue from operations, which rose 11% to ₹16,384 crore on a consolidated basis.

Operating leverage strengthened as the company transitioned from expansion to optimisation. EBITDA increased by 25% to ₹2,089 crore, while profit after tax surged 50% to ₹774 crore. Net debt was approximately ₹4,445 crore, reflecting disciplined capital allocation and working capital optimisation.

Financial Performance

The company’s financial resilience was supported by margin expansion and stronger operating leverage. Key performance indicators for the year included a return on capital employed of approximately 16.8% and a return on equity of 14%. The earnings per share stood at ₹27.20, while the dividend was ₹4 per equity share (200%).

Strategic Developments

During the year, JK Tyre advanced its multi-pronged strategy to adapt to an evolving business scenario. Innovation efforts were directed at reducing resource intensity while preserving product integrity. The company launched India’s first embedded Smart Tyres for passenger vehicles, reinforcing its move towards smarter, safer and connected mobility.

The amalgamation of Cavendish Industries Ltd. with the company, effective from April 1, 2025, was a significant milestone. This merger enhanced operational synergies, wider distribution reach and portfolio diversification. The Laksar Plant, formerly Cavendish Industries Ltd., achieved 95% capacity utilisation following a successful turnaround.

Sustainability and ESG

Sustainability remained a strategic priority, with a focus on decarbonisation and renewable energy. The company achieved its internal 2030 target for reducing carbon emission intensity ahead of schedule. The renewable power mix reached approximately 46%, and coal consumption was reduced by around 3% despite production growth.

The company secured a CareEdge ESG 1+ rating with an overall score of 81.2, surpassing the industry average of 67.4. This rating highlighted significant investments in renewable energy and decarbonisation technologies.