JK Tyre & Industries , a leading player in the Indian tyre market, has announced ambitious plans for expansion and innovation, signaling a strong push for growth in both domestic and international markets.

Expansion Plans

JK Tyre & Industries has revealed its intention to invest Rs 5,000 crore over the next 5-6 years to expand its production capacity. This investment will focus on increasing output for both car and truck tyres, including dedicated export lines. The announcement comes as the company is wrapping up a previous Rs 4,000 crore investment cycle that began four years ago and is expected to conclude in the next quarter.

Smart Tyre Innovation

In a significant technological advancement, JK Tyre & Industries has launched India's first embedded smart tyres for passenger vehicles. These innovative tyres feature:

• Advanced sensors for monitoring air pressure
• Temperature tracking capabilities
• Potential leak detection

The smart tyres are manufactured at the company's Banmore facility in Madhya Pradesh and will be available through dealerships in sizes ranging from 14 to 17 inches.

Export Challenges and Strategies

JK Tyre & Industries currently derives 14% of its revenue from exports to 110 global markets. However, the company faces challenges in the US market due to high tariffs:

To address these challenges, JK Tyre & Industries is:

1. Shifting focus to other international markets
2. Increasing utilization of its Mexico plant for US exports

Industry Outlook

Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries, provided insights on the industry's prospects:

• Expects the domestic tyre industry to grow by 5-7% this year
• Anticipates JK Tyre & Industries to perform slightly better than the industry average
• Cites potential GST changes and small car market revival as supporting factors for growth

The company's strategic investments, focus on innovation, and adaptive export strategies position JK Tyre & Industries to capitalize on both domestic and international market opportunities, despite facing some regulatory challenges in key export markets.

JK Tyre & Industries has reported its highest-ever quarterly consolidated revenue of Rs 4,026.00 crores in Q2 FY26, marking a 10% year-on-year increase. The company's strong performance was driven by robust growth across various segments and improved operational efficiencies.

Financial Highlights

• Consolidated EBITDA grew 21% year-on-year to Rs 536.00 crores
• EBITDA margins improved to 13.3% from 10.9% in the previous quarter
• Profit after tax increased 54% year-on-year to Rs 223.00 crores
• Cash profits for the quarter stood at Rs 428.00 crores, up 33% year-on-year

Segment Performance

Key Drivers

• GST reduction on tyres from 28% to 18%, which was entirely passed on to customers
• Strong performance in the Mexican subsidiary, JK Tornel
• Robust growth in domestic and export markets despite uncertainties

Expansion Plans

JK Tyre & Industries is implementing three expansion projects worth Rs 1,400.00 crores:

1. Passenger Car Radial (PCR) expansion at Banmore plant (Rs 1,025.00 crores)
2. Truck Bus Radial (TBR) expansion at Laksar plant (Rs 261.00 crores)
3. All Steel Light Truck Radial (ASLTR) expansion at Vikrant tyre plant, Mysuru (Rs 112.00 crores)

These projects are expected to start production in Q3 FY26, with full ramp-up over the following 6 months.

Future Outlook

• Management expects to maintain double-digit revenue growth
• EBITDA margins are projected to be in the range of 13-15%
• The company aims to capitalize on the growing demand in both domestic and export markets

JK Tyre & Industries' strong performance in Q2 FY26 demonstrates its ability to navigate challenging market conditions while capitalizing on growth opportunities. The company's focus on expansion and operational efficiency positions it well for continued success in the coming quarters.