MRF Limited has filed disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated 11th May, 2026, providing updates on ongoing income tax litigations for the quarter ended 31st March, 2026. The disclosures pertain to two separate appeals before the Income Tax Appellate Tribunal (ITAT), both involving the Deputy Commissioner of Income-Tax, Central Circle 3(3), Chennai, as the opposing party.

Key Litigation Updates

The company has reported favourable outcomes in both tax disputes, with the Income Tax Appellate Tribunal allowing MRF's appeals on major grounds in each case. The remaining matters in both proceedings have been restored to the Assessing Officer for fresh verification. Notably, following the Tribunal's decisions, the tax demand in each case has been reduced to Nil.

The details of both litigations are summarised below:

Regulatory Compliance

The disclosures were made in accordance with Para B (8) of Part A of Schedule III of SEBI (LODR) Regulations, read with the corresponding provisions of Annexure 18 of the SEBI Master Circular dated 30th January, 2026. The filing was signed by Thulsidass Velayudhan Tharayil, Vice President, General Counsel & Company Secretary of MRF Limited. No settlement terms, compensation, or penalties were reported in connection with either proceeding, and neither case involved litigation against key management personnel, promoters, or any ultimate person in control.

MRF continues to face a cautious outlook from Kotak Securities, which has maintained its Sell rating on the stock while revising the target price upward to ₹1,25,000 from ₹1,20,075. The brokerage's stance reflects concerns over a muted quarterly performance alongside a challenging cost environment driven by rising crude oil and rubber prices.

Analyst Rating and Target Price

The key details of Kotak Securities' latest assessment of MRF are summarised below:

Margin Headwinds and Competitive Pressures

Kotak Securities points to rising crude oil and rubber prices as primary drivers of potential margin compression for MRF. These input cost pressures, combined with a muted quarter, are expected to weigh on the company's near-term profitability. The brokerage acknowledges that MRF is likely to continue outperforming its peers operationally, but notes that this advantage is already reflected in the stock's expensive valuations.

Adding to the cautious outlook is the increasing competitive intensity within the domestic tyre market. Notably, Balkrishna's entry into the domestic Truck and Bus Radial (TBR) and Passenger Car Radial (PCR) segments is identified as a key development that could intensify rivalry and limit MRF's pricing power and market share gains going forward.

Key Concerns at a Glance

• Muted quarterly performance weighing on near-term earnings visibility
• Rising crude oil and rubber prices creating margin headwinds
• Expensive valuations limiting room for further stock price appreciation
• Increasing competitive intensity, including Balkrishna's foray into domestic TBR and PCR segments

Despite the revised target price being higher than the previous one, Kotak Securities' Sell rating underscores the view that current market valuations for MRF do not adequately account for the headwinds facing the company. The combination of cost pressures, competitive dynamics, and stretched valuations forms the basis of the brokerage's cautious stance on the stock.