JK Tyre & Industries Limited reported its highest ever annual consolidated revenue of ₹16,384 crore for FY26, a growth of 11% over the previous year. The company achieved an EBITDA of ₹2,089 crore, an increase of 25%, while Profit After Tax (PAT) rose by 50% to ₹774 crore. The Board has approved a brownfield expansion plan worth ₹4,980 crore to increase capacities for PCR and TBR segments by 24% by 2029 to meet rising demand.

Financial Performance

The company recorded a consolidated revenue of ₹4,233 crore in Q4FY26, up 12% year-on-year. EBITDA for the quarter stood at ₹546 crore, registering a 42% growth, with margins expanding by 270 basis points to 12.9%. Profit after tax for Q4 jumped 83% to ₹188 crore. The strong performance was driven by record volumes across segments, an improved product mix, and sustained cost optimization initiatives.

Key Financial Metrics

Operational Highlights

Domestic markets recorded a volume growth of 21% in Q4, led by a 42% growth in the OE market. TBR volumes in the replacement market grew by 19% and in the OE market by 53%. The Farm category saw a significant volume growth of 58% year-on-year. JK Tormel, the Mexican subsidiary, contributed a revenue of ₹2,138 crore for FY26, with EBITDA of ₹141 crore.

Expansion and Strategy

To meet rising demand, the Board approved a further brownfield expansion for PCR and TBR segments at an aggregate cost of ₹4,980 crore, in addition to the ongoing ₹1,130 crore projects. This will increase TBR and PCR capacities by 24% in phases until 2029. The company is also implementing price hikes of 4-5% in the replacement market and 5-7% in export markets to mitigate rising raw material costs, which are expected to increase by 18-20% in Q1FY27.

JK Tyre & Industries Ltd reported a 50% rise in consolidated profit after tax (PAT) to ₹774 crore for the financial year ended March 31, 2026, driven by record volumes and operational efficiency. The board recommended a dividend of ₹4 per equity share, or 200%, for the fiscal year, subject to shareholder approval at the Annual General Meeting. The company achieved its highest-ever annual consolidated revenue of ₹16,384 crore, an 11% increase from the previous year, while EBITDA grew 25% to ₹2,089 crore.

Financial Performance

For the quarter ended March 31, 2026, consolidated revenue stood at ₹4,233 crore, with EBITDA at ₹546 crore, reflecting a 42% year-on-year increase. The Q4 EBITDA margin expanded significantly to 12.9% from 10.2% in the same quarter of the previous year. PAT for the quarter rose 83% to ₹188 crore. The standalone PAT for the year was ₹748 crore on revenue of ₹14,669 crore. The growth was attributed to robust domestic demand, a 21% increase in sales volumes across segments, and a 42% surge in the original equipment (OE) market. The Mexico subsidiary, JK Tornel, contributed significantly to the consolidated results.

The table below summarises the key financial metrics for the full year:

The following table highlights the Q4 performance:

Dividend and Shareholder Returns

The board has recommended a dividend of ₹4 per equity share of ₹2 each, totaling 200% for FY26. The payout is scheduled to be credited or dispatched within two weeks of the ensuing Annual General Meeting. The trading window for designated persons, which closed on April 1, 2026, will reopen on May 29, 2026.

Operational Highlights and Exceptional Items

The company operates through three geographical segments: India, Mexico, and Others. India generated segment revenue of ₹14,614 crore for the year, while Mexico contributed ₹2,137 crore. Exceptional items for the year included a foreign exchange loss of ₹25.95 crore, a voluntary retirement scheme (VRS) expense of ₹30.16 crore, and a stamp duty expense of ₹32.50 crore related to the amalgamation of subsidiary Cavendish Industries Ltd. Additionally, the company assessed an incremental impact of ₹56.98 crore towards retiral obligations due to new Labour Codes.

Amalgamation and Restatement

The financial statements incorporate the impact of the Scheme of Amalgamation of Cavendish Industries Ltd. with the company, effective April 1, 2025. Consequently, comparative figures for the previous year have been restated. The auditors, Lodha & Co LLP, issued an unmodified opinion on the audited standalone and consolidated financial results. The company also noted it was adjudged 'Best in Class' for ESG rating for the third consecutive year.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE573A01042/c889a014d79e4c35.pdf