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JK Tyre Profit Soars 295% on Strong Sales
9 Feb
Summary
- Consolidated net profit surged 294.96% to Rs 207.75 crore in Q3 FY26.
- Revenue from operations increased by 14.95% to Rs 4,222.96 crore.
- Merger with Cavendish Industries successfully completed during the quarter.
JK Tyre & Industries has announced a robust financial performance for the third quarter of fiscal year 2026 (Q3 FY26). The company's consolidated net profit experienced a dramatic increase of 294.96%, reaching Rs 207.75 crore, compared to the same period in the previous fiscal year.
This substantial profit growth was underpinned by a 14.95% rise in revenue from operations, which totalled Rs 4,222.96 crore in Q3 FY26. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a significant year-on-year increase of 74.03%, reaching Rs 583 crore, with an improved EBITDA margin of 13.8%.
The domestic market demonstrated strong performance with healthy double-digit growth of 16% year-on-year, fueled by a 12% increase in the replacement segment and a remarkable 27% growth in the original equipment manufacturer (OEM) segment. Exports also remained resilient amidst global market uncertainties.
A significant development during the quarter was the successful completion of the merger of Cavendish Industries (CIL) with JK Tyre, following the acquisition of all necessary statutory approvals. CIL, acquired in 2016, has been transformed under JK Tyre's leadership, scaling capacity utilization from approximately 30% to over 95%, representing another successful turnaround for the company.
JK Tyre's international subsidiary, JK Tornel in Mexico, also contributed to the improved consolidated financial results with a significant enhancement in its financial performance. Looking ahead, the company enters the fourth quarter with strong confidence, anticipating continued healthy demand across segments and favorable macroeconomic conditions.
