JK Tyre & Industries on Friday reported a 73 per cent decline in consolidated net profit for the first quarter of FY27, as higher raw material costs triggered by the ongoing West Asia conflict weighed on margins despite healthy demand across domestic markets.
The tyre maker posted a consolidated net profit of ₹44.09 crore for the quarter ended June 30, 2026, compared with ₹163.35 crore in the corresponding period last year. Consolidated revenue from operations rose marginally to ₹3,946.24 crore during the quarter from ₹3,868.94 crore a year earlier.
However, total expenses increased sharply to ₹3,912.75 crore from ₹3,695.08 crore in the year-ago period, primarily due to a steep rise in raw material costs. Material consumption during the quarter surged to ₹3,036.51 crore from ₹2,266.69 crore in the same period last year.
Petrochemical Raw Material Inflation
“The continuing West Asia crisis led to a sharp increase in raw material prices, which impacted our gross and operating margins. Approximately 70 per cent of the tyre industry raw materials are petro-based, hence, it is highly vulnerable to oil price movement,” Chairman and Managing Director Raghupati Singhania said.
Singhania said the company delivered a steady performance in the first quarter of FY27, driven by strong customer demand, product innovation and disciplined execution across markets.
Strong Domestic Demand
Domestic sales volumes grew 25 per cent year-on-year during the quarter, led by healthy growth in both the replacement and original equipment (OE) segments. Replacement market volumes increased 12 per cent, while supplies to automobile manufacturers rose 42 per cent over the year-ago period.
The company also witnessed a higher contribution from premium and value-added products, which helped support revenue growth despite rising input costs.