Financial Performance Highlights

Q4 FY26 Performance (Consolidated)

  • Revenue: ₹4,233 crore, up 12% YoY (from ₹3,780 crore in Q4 FY25)
  • EBITDA: ₹546 crore, up 42% YoY (from ₹384 crore in Q4 FY25)
  • EBITDA Margin: 12.9%, expansion of 270 basis points (from 10.2% in Q4 FY25)
  • Profit After Tax: ₹188 crore, up 83% YoY (from ₹102 crore in Q4 FY25)
  • Earnings Per Share: ₹6.65 per share (from ₹3.47 per share in Q4 FY25)
  • Cash Profit: ₹446 crore, up 69% YoY (from ₹264 crore in Q4 FY25)

Full Year FY26 Performance (Consolidated)

  • Revenue: ₹16,384 crore, up 11% YoY (highest ever annual revenue)
  • EBITDA: ₹2,089 crore, up 25% YoY
  • EBITDA Margin: 12.8%
  • Profit Before Tax: ₹1,043 crore, up 46% YoY (from ₹713 crore in FY25)
  • Profit After Tax: ₹774 crore, up 50% YoY
  • Cash Profit: ₹1,661 crore, up 38% YoY
  • Return Ratios: ROCE at 16.8%, ROE at 14%

Operational Highlights

Volume Growth (Q4 FY26 YoY)

  • Domestic markets recorded 21% volume growth
  • OE Market grew 42%
  • TBR volumes: Replacement market grew 19%, OE market grew 53%
  • Passenger line volumes grew 16% (Replacement 10%, OE 26%)
  • Farm category volumes grew 58% (Replacement 30%, OE nearly doubled)
  • 2/3W category: OE segment grew 72%, exports jumped 31%

Market Mix (Q4 FY26 Consolidated)

  • Replacement: 63%
  • OE: 27%
  • Exports: 10%

Category Mix (Q4 FY26 Consolidated)

  • Truck and Bus: 56%
  • Passenger Line: 27%
  • Non-Truck Bias: 13%
  • 2/3 Wheeler: 4%

Raw Material Costs

  • Q4 FY26 raw material basket increased 1.3% QoQ
  • YoY raw material costs remained rangebound
  • Expected 18-20% increase in raw material prices in Q1 FY27 from Q4 levels due to West Asia crisis

Price Action

  • Already implemented 4-5% price hike across products in replacement market
  • 5-7% price hike in export markets
  • Additional 5-6% price hike underway
  • OEM price increases will occur with lag effect
  • Competition has taken similar price hikes in same range

Expansion Plans

  • Board approved brownfield expansions for PCR and TBR segments at aggregate cost of ₹4,980 crore
  • Expansions to be completed in phases until 2029
  • Will increase TBR & PCR capacities by 24%
  • In addition to ongoing expansion projects of ₹1,130 crore under implementation
  • Total expansion outlay: ₹6,110 crore to be completed by FY29
  • FY27 cash outlay: Approximately ₹1,200 crore
  • Funding: Debt-to-equity ratio of 2:1, supported by internal accruals and bank funding

JK Tornel (Mexico Subsidiary) Performance

  • FY26 Revenue: ₹2,138 crore (stable vs ₹2,147 crore in FY25)
  • FY26 EBITDA: ₹141 crore
  • FY26 PBT: ₹61 crore, up 63% YoY
  • FY26 PAT: ₹42 crore, up 91% YoY
  • Q4 FY26 Revenue: ₹378 crore
  • Q4 FY26 EBITDA: ₹24 crore, up 36% YoY
  • Developing new passenger-line tyre for Mexican and US markets
  • Implementing Cloud-based AI-enabled platform for digital transformation

Debt and Cash Position

  • Consolidated debt as on 31.03.26: ₹4,445 crore (vs ₹4,081 crore as on 31.03.25)
  • Increase of ₹364 crore due to term loans for expansion projects
  • Working capital borrowings reduced from ₹2,378 crore to ₹1,808 crore
  • Cash balance as on 31.03.26: ₹301 crore (vs ₹711 crore as on 31.03.25)
  • Cash utilized for expansion projects including QIP funds raised in December 2023
  • Leverage ratios: Net debt-to-equity at 0.73x, Net debt-to-EBITDA at 2.13x

Capacity Utilization

  • Installed capacities fully utilized across segments
  • India level utilization above 90% for full year

Strategic Initiatives

  • Added 50+ new brand shops in FY26
  • Secured new approvals from leading OEMs including Tata Motors, Ashok Leyland, Mahindra, Switch Mobility, VECV, Euler Motors
  • Launched "Shresth Plus" premium farm tyres
  • Recognized among India's Most Sustainable Companies, ranking top 5 in automotive sector
  • Implementing AI in manufacturing towards paperless and connected plants
  • Expanding deployment of Agentic AI solutions across functions
  • Fleet management program (selling miles/mobility solution business) creating competitive barriers

Market Outlook

  • Indian GDP growth: 7.5% in FY26, expected 6.9% in FY27
  • Auto industry witnessed robust double-digit growth in FY26
  • Vehicle exports from India grew 24% YoY
  • EV retail sales grew 25% YoY across all segments
  • Demand expected to remain buoyant in FY27 with strong underlying structural demand
  • Geopolitical uncertainties causing supply chain disruptions and input cost pressures

Management Participants

  • Mr. Anshuman Singhania – Managing Director
  • Dr. Arun K. Bajoria – Director & President, International
  • Mr. A.K. Kinra – Financial Advisor
  • Mr. Sanjeev Aggarwal – Chief Financial Officer
  • Mr. Chirag Jain – Deputy Head (Research), Emkay Global Financial Services Limited (Moderator)