JK Tyre & Industries Limited , one of India's leading tyre manufacturers, has announced robust financial results for the second quarter of fiscal year 2026, showcasing significant growth across key metrics.

Financial Highlights

The company reported impressive financial performance for Q2 FY26:

JK Tyre's consolidated revenue from operations stood at Rs. 4,014.31 crores for the quarter. The company's profit after tax surged by 54% year-on-year to Rs. 223 crores, marking a substantial improvement in profitability.

Operational Performance

Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre, highlighted the company's strong performance, attributing it to growth momentum across various segments:

• Domestic Market: Volumes grew by 15%, driven by notable upticks across all segments.
• Export Market: Despite uncertainties surrounding US tariff rates, export volumes increased by 13% compared to the previous quarter.
• EBITDA: Consolidated EBITDA reached Rs. 536 crores with an improved margin of 13.3%.

The improved operational performance was attributed to higher sales volumes, softening raw material prices, and enhanced operational efficiencies.

Segment Performance

Both Cavendish (India) and Tornel (Mexico) subsidiaries demonstrated significant improvement in their performance during Q2, contributing positively to the company's overall financials.

Market Outlook

Dr. Singhania expressed optimism about the automobile sector's growth trajectory, stating, "With high-frequency indicators pointing towards a pickup in economic activity, we believe the automobile sector is on a strong growth track and will create higher demand for tyres across segments going ahead."

He also noted that the implementation of GST 2.0 is a progressive step that is expected to boost demand and contribute to economic growth.

Sustainability Recognition

JK Tyre has once again secured the top-notch CareEdge ESG 1+ rating for the third consecutive year, underscoring its commitment to sustainability. The company received an overall ESG score of 81.2, demonstrating leadership in managing environmental, social, and governance risks through best-in-class disclosures, policies, and performance.

The ESG rating breakdown is as follows:

• Environmental score: 80.6
• Social score: 84.9
• Governance score: 77.5

This recognition highlights JK Tyre's proactive efforts in carbon and energy management, product safety and quality, employee health and safety, community support, and strong governance practices.

Future Outlook

JK Tyre remains committed to leveraging opportunities to enhance its role as a preferred mobility partner. The company aims to deliver superior value to customers through innovation and technology-led solutions.

As the automobile sector continues to grow, JK Tyre is well-positioned to capitalize on the increasing demand for tyres across various segments, supported by its strong market presence and focus on sustainability.

JK Tyre & Industries Ltd. has demonstrated its commitment to environmental, social, and governance (ESG) practices by securing a CareEdge-ESG1+ rating from CARE ESG Ratings Limited. This rating places the company in the 'Leadership' category, reflecting its strong performance across key sustainability metrics.

ESG Performance Breakdown

The company's ESG performance can be summarized in the following table:

Environmental Leadership

With an environmental score of 80.60, JK Tyre & Industries has shown exceptional performance in:

• Proactive carbon and energy management
• Implementation of comprehensive policies
• Advanced monitoring systems
• Significant investments in renewable energy
• Adoption of decarbonisation technologies

These initiatives have positioned the company above the industry median in environmental stewardship.

Social Responsibility

The company's social score of 84.90 reflects its leadership among industry peers in several key areas:

• Product safety and quality
• Employee health and safety
• Community support and development
• Consumer protection
• Value chain management

Governance Practices

JK Tyre & Industries' governance score of 77.50 indicates strong ethical and compliance systems, contributing to its overall leadership position in ESG practices.

Implications and Future Outlook

This ESG rating not only recognizes JK Tyre & Industries' current efforts but also positions the company as a leader in sustainable business practices within its industry. As investors and consumers increasingly prioritize sustainability, this rating may enhance the company's reputation and potentially its market position.

The confirmation of these ratings underscores JK Tyre & Industries' ongoing commitment to ESG principles and may serve as a benchmark for other companies in the sector.

As global focus on sustainability intensifies, JK Tyre & Industries' strong ESG performance could potentially influence its relationships with stakeholders, including investors, customers, and regulators, while also setting a standard for responsible business practices in the tyre industry.