MRF reports 30% profit growth in FY26, revenue crosses Rs 30,000 crore

​MRF reported a 30 percent year-on-year increase in consolidated net profit to Rs 2,426 crore for FY26. The company's consolidated total income rose 11 percent to Rs 31,654 crore for the financial year ended March 31, 2026. MRF attributed this strong performance to new product launches across truck, passenger vehicle, and two-wheeler categories, as well as higher demand in both replacement and original equipment manufacturer (OEM) segments.

Key Highlights

• MRF reported 30 percent year-on-year net profit growth to Rs 2426 crore in FY26
• Total income rose 11 percent to Rs 31654 crore, with sales crossing Rs 30000 crore milestone
• Growth driven by new product launches and higher demand in replacement and OEM segments
• The company flagged rising input costs and supply chain disruptions as ongoing challenges
• MRF declared a total dividend of Rs 235 per share for FY26

Financial Performance Overview

Profit before tax for FY26 reached Rs 3,222 crore, up from Rs 2,483 crore in the previous year. Tax expenses increased to Rs 796 crore, compared to Rs 610 crore in FY25. MRF crossed the Rs 30,000-crore sales milestone during FY26, driven by growth in both replacement and OE businesses. The company noted that demand momentum, supported by GST rate reductions, continued into the fourth quarter. This trend benefited both replacement and OE sales. Increased vehicle production by manufacturers also contributed to higher tyre demand during the quarter.

Business Drivers and Market Expansion

MRF said new product launches in the truck, passenger vehicle, and two-wheeler segments supported its performance. The company also increased supplies to electric vehicle manufacturers. MRF tyres are now fitted on vehicles exported by OEMs to several international markets. To meet future demand, MRF is expanding capacity across its plants. The expansion aims to serve domestic replacement markets, OEMs, and export customers.

Challenges and Outlook

The company highlighted concerns over rising raw material costs and supply chain disruptions linked to the ongoing conflict in the Middle East. MRF expects input costs to continue rising. The company has already implemented price hikes and cost-management measures, with further increases likely. It also noted that forecasts of a subnormal monsoon could affect demand. MRF is evaluating the potential impact of uncertain economic conditions and margin pressures on future growth.

MRF declared a total dividend of Rs 235 per share of face value Rs 10 each for FY '26. This includes two interim dividends of Rs 3 per share already paid. The company continues to monitor market conditions and adjust its strategies accordingly.

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CarBike 360 Says

MRF’s strong FY26 performance highlights its resilience and ability to capitalize on market demand despite industry challenges. With revenue crossing Rs 30,000 crore and profit surging by 30%, the company reinforces its leadership in the Indian tyre segment. Going forward, strategic expansion and sustained demand are expected to support continued growth momentum.