JK Tyre & Industries Limited has delivered robust third-quarter results for the financial year 2025-26, with consolidated revenue reaching ₹4,223 crore (approximately £402 million) for the quarter ended 31 December 2025—a year-on-year increase of around 15 per cent.
The Delhi-based tyre manufacturer announced its results on 7 February 2025, revealing strong performance across both original equipment (OE) and replacement market segments. Domestic revenue climbed 16 per cent, with OE sales surging 27 per cent and replacement market sales advancing 12 per cent.
Net profit showed particularly impressive growth, rising more than threefold to approximately ₹208 crore (£19.8 million) from ₹53 crore in the same quarter last year. EBITDA stood at ₹583 crore with a margin of 13.8 per cent, an expansion of 470 basis points year-on-year.
The margin improvement was attributed to operational efficiencies, favourable raw material costs (particularly lower natural rubber prices) and an enhanced product mix. The company achieved this growth organically, without implementing major price increases during the quarter.
Double-digit volume expansion was recorded in both passenger car radials (PCR) and truck and bus radials (TBR). The PCR segment benefited from increased OE demand and steady replacement market activity, whilst TBR volumes were bolstered by export market recovery and domestic fleet demand.
International operations, particularly in Mexico, contributed to the overall performance through improved efficiency and cost management initiatives.
A significant milestone during the quarter was the completion of JK Tyre's merger with its subsidiary Cavendish Industries Ltd. This integration has pushed capacity utilisation above 95 per cent, enabling the company to meet growing demand more effectively.
Chairman Raghupati Singhania expressed optimism about the company's trajectory, citing strong demand conditions and favourable macroeconomic factors as positive indicators for the fourth quarter of FY26 and the coming financial year.
Investors responded positively to the results, with JK Tyre shares climbing approximately 7 per cent to reach a 52-week high following the announcement. The market reaction reflects confidence in both the quarterly performance and the strategic benefits of the Cavendish merger.
The company's ability to leverage operational synergies whilst maintaining pricing discipline positions it well to capitalise on continued demand growth in India's expanding automotive sector.
Tagged with: JK Tyre results, Q3 FY26, OE tyre demand, replacement market, EBITDA margin, Cavendish merger, capacity utilisation, natural rubber costs, truck bus radials, passenger car radials, India tyre industry
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