JK Tyre & Industries Ltd has announced board approval for a major capacity expansion initiative worth Rs 1,130 crore, targeting increased production of commercial and passenger vehicle tyres. The board meeting, concluded on February 6th, 2026, approved the expansion under SEBI Regulation 30 disclosure requirements.

Expansion Details and Investment

The capacity expansion encompasses three key tyre categories across multiple manufacturing facilities. The company plans to increase production of Truck & Bus Radial (TBR) tyres, All Steel Light Truck Radial (ASLTR) tyres, and Passenger Car Radial (PCR) tyres by 6.5%.

Manufacturing Facilities and Product Focus

The expansion will be implemented across three strategic locations to enhance the company's manufacturing footprint:

• Vikrant Tyre Plant (VTP): TBR and ASLTR tyre production expansion
• Laksar Tyre Plant (LTP): TBR tyre manufacturing enhancement
• Banmore Tyre Plant (BTP): PCR tyre capacity addition

The current capacity of 204 lakh tyres per annum includes capacity additions already under implementation, indicating the company's ongoing commitment to scaling operations.

Financing Strategy

The Rs 1,130 crore investment will be funded through a combination of internal accruals and debt financing. This financing approach reflects the company's balanced capital structure strategy while supporting significant growth investments.

Market Rationale and Industry Outlook

The company cited robust demand across tyre categories in the Indian market as the primary driver for this expansion. The strategic initiative aims to increase JK Tyre & Industries' market presence in the automotive tyre sector, capitalizing on favorable industry conditions.

With capacity utilization already exceeding 90%, the expansion addresses immediate market demand while positioning the company for sustained growth in the commercial and passenger vehicle segments.

JK Tyre & Industries Limited delivered exceptional financial performance in Q3FY26, reporting a remarkable 3.7x surge in consolidated net profit and strong revenue growth across all business segments.

Outstanding Financial Performance

The company's Q3FY26 consolidated results demonstrated robust growth across key financial metrics:

For the nine months ended 31st December 2025, the company maintained strong momentum with revenue from operations reaching ₹12,103.21 crores compared to ₹10,934.32 crores in the corresponding period last year, representing an 11% increase.

Segment-wise Performance Analysis

The company's geographic segments showed varied performance during Q3FY26:

The India segment contributed the largest share to total revenues, while the Mexico operations through JK Tornel showed significant improvement in financial performance during the quarter.

Operational Excellence and Market Position

Dr. Raghupati Singhania, Chairman & Managing Director, highlighted the company's strong performance driven by healthy automobile demand supported by GST-led reforms, festive season momentum, and positive rural sentiments. The domestic business recorded healthy double-digit growth of 16% on a year-on-year basis, with the replacement segment growing 12% and the OEM segment achieving robust 27% growth.

The company's EBITDA margin expansion of 470 basis points to 13.8% reflects continued focus on product premiumisation, operating leverage, and execution excellence, along with favorable raw material price conditions.

Strategic Corporate Actions

During Q3FY26, JK Tyre successfully completed the merger of Cavendish Industries Limited (CIL) with the company following receipt of all statutory approvals. The merger became effective on 22nd December 2025 after filing the National Company Law Tribunal order with the Registrar of Companies, Rajasthan.

Acquired in 2016 from Kesoram Industries Limited, CIL underwent remarkable transformation under JK Tyre's leadership, with capacity utilization scaling from around 30% to over 95%.

Sustainability and Recognition

JK Tyre reinforced its commitment to sustainability by receiving the prestigious Silver rating in the latest EcoVadis ESG assessment, placing the company among the top 7% of companies globally. This recognition supports the company's long-term vision of becoming a green company by 2050. The company has also been ranked as 'Great Place to Work' in 2025 for the fifth consecutive year.