Goodyear India demonstrated exceptional profitability growth in its third quarter results, with net profit registering a remarkable 159% year-over-year increase and EBITDA performance showing significant improvement. The tire manufacturer's bottom-line performance showcased substantial enhancement in operational efficiency and margin expansion despite facing revenue headwinds during the period.

Financial Performance Overview

The company's Q3 financial metrics present strong profitability gains alongside revenue challenges:

Profitability and Margin Expansion

The standout performance came from the company's net profit, which more than doubled to reach ₹246 million compared to ₹95 million in the corresponding quarter of the previous year. Additionally, EBITDA showed robust growth of 77%, rising to ₹422 million from ₹238 million year-over-year. The EBITDA margin expanded significantly to 6.95% from 3.77%, representing an improvement of 318 basis points.

Revenue Performance

While profitability metrics showed exceptional growth, revenue experienced a decline during the quarter. The company reported revenue of ₹6.10 billion, representing a decrease from ₹6.32 billion recorded in the same quarter last year. This 3.5% year-over-year decline in revenue highlights the challenging market conditions faced by the tire industry.

Operational Excellence

The contrasting trends between strong profit growth and revenue decline demonstrate that Goodyear India has successfully enhanced its operational efficiency and cost management capabilities. The substantial improvement in EBITDA margin from 3.77% to 6.95% indicates effective cost optimization and productivity enhancements. This performance reflects strong management execution in navigating market challenges while maintaining a sharp focus on profitability and margin expansion.

Goodyear India Limited has disclosed receiving an Income Tax Department order that disallows certain expenditures for FY 2021-22, creating a significant tax liability for the tyre manufacturer. The company received the order on January 16, 2026, and has made the disclosure under Regulation 30 of SEBI listing regulations.

Tax Order Details

The Income Tax authorities issued an order under Section 144C(1) of the Income Tax Act, 1961, for Assessment Year 2022-23. The order specifically targets four categories of expenditures that the department has disallowed:

Financial Impact

The disallowance has created substantial financial implications for the company. The total expenditure amount disallowed reaches ₹80.65 crores, which has generated a comprehensive tax impact.

Company's Response Strategy

Goodyear India has expressed confidence in challenging the Income Tax Department's decision. The company believes the disallowances lack legal sustainability and can be successfully defended on merit. Management has characterized these disallowances as contingent in nature, indicating they view the matter as disputable rather than definitive.

The company is preparing to file an appeal before the tribunal to contest the order. This legal recourse represents the standard procedure for companies disagreeing with income tax assessments and seeking judicial review of the department's decisions.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Anup Karnwal signed the regulatory filing, ensuring compliance with mandatory disclosure requirements for material events affecting listed companies.