JK Tyre & Industries (530007) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever consolidated revenue of ₹4,235 crore in Q3 FY26, up 15% year-over-year, driven by strong domestic and export demand, product premiumization, and operational excellence.

• Net profit for Q3 FY26 surged 3.7x year-over-year to ₹209 crore, with EPS increasing to ₹7.29.

• Merger of Cavendish Industries Limited completed, enhancing capacity, financial performance, and expected operational synergies.

• Recognized for sustainability and innovation, including the launch of India's greenest tyre, embedded smart tyre technology, and top ESG ratings.

• International subsidiary JK Tornel (Mexico) delivered significant improvement, strengthening consolidated results.

Financial highlights

• Q3 FY26 EBITDA was ₹583 crore, up 74% year-over-year, with margin at 13.8% (up 470 bps YoY).

• Q3 FY26 PAT margin improved to 4.9% from 1.6% a year ago.

• 9MFY26 consolidated total income was ₹12,151 crore, up 11% year-over-year, with PAT at ₹586 crore, up 42%.

• Net debt at ₹4,183 crore as of Dec 31, 2025; debt/equity at 0.71, debt/EBITDA at 2.17x.

• Exceptional items included foreign exchange losses, VRS expenses, stamp duty for merger, and impact of new labour codes.

Outlook and guidance

• Raw material prices expected to remain range-bound with a 1%-2% increase.

• EBITDA margin guidance maintained at 13%-15% for FY27, supported by robust demand and premiumization.

• Targeting mid-double-digit revenue growth if current momentum continues.

• Focus on expanding sustainable product offerings, leveraging R&D, and strengthening global OEM relationships.

• Management expressed strong confidence entering Q4, citing healthy demand, positive consumer sentiment, and lower interest rates.