Raw material price volatility, geopolitical uncertainties, supply chain disruptions and elevated logistics costs will remain the biggest challenges for the tyre industry in FY27, even as demand is expected to stay robust, according to JK Tyre & Industries Chairman and Managing Director Dr. Raghupati Singhania.
“We are optimistic for FY27, supported by infrastructure-led growth, steady freight movement, new vehicle launches and continued sustained demand across OEM and replacement markets,” Singhania told Financial Express. However, he cautioned that “risks remain around raw material price volatility, geopolitical uncertainties, supply chain disruptions and elevated logistics costs,” adding that the company’s diversified sourcing, strong manufacturing base and focus on operational efficiency position it well to navigate these challenges.
Singhania said JK Tyre expects growth to be driven by capacity expansion, premiumisation of its product portfolio, a higher share of value-added products, stronger OEM partnerships and export growth. The company also sees emerging opportunities in electric vehicles and smart mobility.
Record FY26 Earnings
Despite a challenging operating environment in FY26, marked by geopolitical uncertainties and evolving market dynamics, JK Tyre reported its highest-ever consolidated revenue of ₹16,384 crore, EBITDA of ₹2,089 crore and profit after tax of ₹774 crore.
According to Singhania, the company’s performance was supported by strong volume growth, particularly in the OEM business, a resilient replacement market, an improved product mix through premiumisation, and continued cost optimisation and operational efficiencies, which helped sustain healthy margins. Steady export performance and investments in technology, innovation and capacity expansion also strengthened its competitive position.
Looking ahead, Singhania expects tyre demand to broadly track growth in the automotive industry. Passenger vehicle demand will be supported by the shift towards larger and premium vehicles, while commercial vehicle tyre demand will remain linked to infrastructure activity, freight movement and economic growth. He said the replacement market would continue to be the industry’s key stabiliser and growth driver.
Capex Allocation
JK Tyre is also pursuing an aggressive expansion strategy. The company recently approved a ₹4,980 crore phased brownfield investment to expand truck and bus radial and passenger car radial capacities at its Chennai and Vikrant plants. The expansion is expected to increase capacity by around 24% by FY30, strengthening the company’s ability to meet rising domestic and export demand. Exports currently contribute around 16% of JK Tyre’s revenues, with the company targeting further growth through premium products and deeper penetration into high-value international markets.