JK Tyre reported an 83 per cent year-on-year rise in consolidated net profit for the fourth quarter of FY26 and announced a Rs 4,980 crore capacity expansion programme for truck, bus and passenger car radial tyres amid rising domestic demand.
The company’s board approved phased expansion of Truck & Bus Radial (TBR) tyre capacity at its Chennai Tyre Plant and Vikrant Tyre Plant, along with Passenger Car Radial (PCR) tyre expansion at the Chennai facility. The proposed expansion will increase TBR and PCR capacity by 24 per cent by FY30.
How will the projects be funded?
The projects will be funded through a mix of internal accruals and debt. JK Tyre currently has a combined TBR and PCR production capacity of 2,10,000 tyres annually, including capacities under implementation, with utilisation levels running at over 90 per cent. The company said the expansion was aimed at strengthening its market presence as the Indian tyre industry continues to witness healthy demand across segments.
For the January-March quarter, consolidated revenue stood at Rs 4,233 crore, while EBITDA rose 42 per cent year-on-year to Rs 546 crore. EBITDA margin for the quarter came in at 12.9 per cent. Profit before tax stood at Rs 277 crore, while profit after tax rose to Rs 188 crore.
For the full financial year FY26, consolidated revenue increased 11 per cent year-on-year to Rs 16,384 crore. EBITDA rose 25 per cent to Rs 2,089 crore, with EBITDA margin at 12.8 per cent. Profit before tax stood at Rs 1,043 crore, while profit after tax came in at Rs 774 crore.
The board has also recommended a dividend of 200 per cent, or Rs 4 per equity share.
Chairman and Managing Director Raghupati Singhania said FY26 was a record year for the company, aided by GST and personal tax reforms, lower interest rates, improved economic activity and festive season demand.
The company said domestic sales volumes increased 21 per cent year-on-year across segments during the fourth quarter, led by 42 per cent growth in the original equipment segment. Exports remained stable despite geopolitical uncertainties, including the ongoing conflict in West Asia.
JK Tyre added that its Mexico subsidiary, JK Tornel, contributed to consolidated earnings during the quarter. The company said it remains focused on higher value-added products for domestic and export markets as it prepares for FY27 amid rising input costs and global volatility.