MRF Limited reported a decline in consolidated profitability for the second quarter of FY27, as higher raw-material costs affected its margins despite healthy revenue growth.
The tyre manufacturer’s consolidated net profit declined 26.6% year-on-year (YoY) to ₹386.99 crore in Q2 FY27, compared with ₹527.43 crore in the corresponding quarter of the previous financial year.
However, consolidated revenue from operations increased 17.4% YoY to ₹8,660.19 crore from ₹7,378.72 crore in Q2 FY26. Consolidated total income stood at ₹8,791.58 crore during the September quarter, compared with ₹7,489 crore in the year-ago period.
The company’s profit before tax declined 25.5% to ₹521.81 crore from ₹700.45 crore in the corresponding quarter last year.
MRF Q2 Results : Operating Performance
MRF’s operating profitability remained under pressure during the quarter. Consolidated EBITDA stood at approximately ₹1,089 crore, compared with ₹1,234 crore in Q2 FY26.
The operating profit margin declined to approximately 11.06% from 15.26% in the year-ago quarter, reflecting the impact of higher input costs.
Despite the pressure on margins, the company recorded double-digit sales growth during the quarter, supported by sustained demand from both original equipment manufacturers (OEMs) and the replacement market.
Higher Raw-Material Costs Weigh on Profitability
According to the company’s press release, steep increases in raw-material prices amid global uncertainties adversely affected profitability during Q2 FY27.
MRF stated that price increases and cost-saving measures helped mitigate some of the cost pressures. However, the company expects continued disruptions and volatility in commodity markets, with raw-material and logistics costs likely to remain elevated.
The company said it would continue taking measured steps to address these challenges.
MRF Declares Interim Dividend of ₹3 Per Share
Alongside its quarterly results, MRF’s Board of Directors declared an interim dividend of ₹3 per equity share, representing 30% of the face value of ₹10 per share, for FY27.
The company has fixed November 17, 2026, as the record date to determine eligible shareholders. The dividend payment will be made on or after December 1, 2026.
MRF Q2 Results : Key Financial Highlights
- Consolidated revenue from operations: ₹8,660.19 crore, up 17.4% YoY.
- Consolidated total income: ₹8,791.58 crore, compared with ₹7,489 crore.
- Consolidated net profit: ₹386.99 crore, down 26.6% YoY.
- Profit before tax: ₹521.81 crore, down 25.5% YoY.
- Consolidated EBITDA: Approximately ₹1,089 crore.
- Operating profit margin: Approximately 11.06%, compared with 15.26%.
- Interim dividend: ₹3 per equity share.
- Dividend record date: November 17, 2026.
- Dividend payment: On or after December 1, 2026.
MRF H1 FY27 Performance
For the first half of FY27, MRF’s consolidated revenue from operations stood at ₹17,075.69 crore, compared with ₹14,091.30 crore in H1 FY26.
Consolidated net profit for the six-month period was ₹882.34 crore, compared with ₹1,023.08 crore in the corresponding period last year.
The first-half performance reflects the impact of cost pressures on profitability despite continued growth in sales.
Outlook: Demand Remains Steady Amid Cost Pressures
MRF continues to see demand from both the OEM and replacement segments. However, the company expects global commodity-market volatility and elevated raw-material and logistics costs to remain important challenges in the near term.
Price adjustments and cost-saving initiatives are expected to remain part of its efforts to manage input-cost pressures.
Overall, MRF reported 17.4% growth in consolidated revenue in Q2 FY27, while net profit declined 26.6% year-on-year. The quarter highlights the impact of rising input costs on profitability despite healthy sales growth. The company also announced an interim dividend of ₹3 per share.
Source: MRF Limited, unaudited consolidated financial results for the quarter and half year ended September 30, 2026, and press release dated November 10, 2026, filed with NSE and BSE.
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