MRF reported a 1.31% year-on-year (YoY) increase in its Q1FY27 consolidated net profit to Rs 495.35 crore, from Rs 501.82 crore reported in Q1FY26.
Revenue from operations of Tyre maker MRF also increased 9.64% YoY to Rs 8,415.50 crore in Q1FY27, compared with Rs 7,675.64 crore in Q1FY26.
On a sequential basis, MRF’s net profit declined sharply by 28.54%, while revenue increased 4.62% quarter-on-quarter (QoQ) from Rs 8,044.22 crore reported in Q4FY26.
Total expenses in the quarter under review were higher at Rs 7,960.87 crore as compared to Rs 7,132.4 crore in the year-ago period.
Cost of materials consumed in the first quarter were higher at Rs 5,854.23 crore as against Rs 4,622.99 crore in the same period last fiscal, the filing said.
MRF posts Rs 63.24 crore liability due to new Labour Codes
MRF said it has posted a liability of Rs 63.24 crore on a consolidated basis as of March 31, 2026, due to the impact of the new Labour Codes on its past service cost liability.
The company had initially estimated the liability at Rs 77.20 crore as of December 31, 2025. The liability was reassessed at Rs 61.99 crore as of March 31, 2026, on a standalone basis.
“The Company was able to deliver a resilient operating performance in Q1 on the back of good demand for the Company’s products. Demand from OE Manufacturers was buoyant as Vehicle sales across segments witnessed strong growth. Replacement sales was also healthy as demand continued to be robust. However, higher input costs impacted profitability during the quarter,” MRF said in its regulatory filing.
“The Company has taken price increases and cost management measures in this quarter which helped to partially offset cost increases. Raw Material prices continue to remain firm due to the ongoing conflict in the Middle East. The impact of higher costs on margins is expected to continue,” MRF added.