Key Financial Performance (Q2 FY27)

Consolidated Performance:

  • Achieved highest-ever consolidated revenue of ₹4,850 crore, up 20% YoY (vs. ₹4,026 crore in Q2 FY26)
  • Consolidated EBITDA reached ₹343 crore, up 28% sequentially from Q1 FY27 (₹268 crore)
  • EBITDA margins improved to 7.1% from 6.8% in Q1 FY27
  • Profit After Tax (PAT) stood at ₹60 crore, up 40% sequentially from Q1 FY27
  • Cash profits (PBDT) were ₹234 crore vs. ₹169 crore in previous quarter, up 39%
  • Earnings Per Share (EPS) stood at ₹2.29 vs. ₹1.55 in Q1 FY27
  • Return ratios: ROCE at 12% and ROE at 8.7%
  • Net debt as on 30th September 2026 stood at ₹5,696 crore, increased by ₹751 crore QoQ
  • Net debt to equity ratio at 0.94x as on 30.09.2026

Raw Material Cost Pressures:

  • Average raw material costs increased by 9% sequentially in Q2 FY27
  • This follows a 22% increase in Q1 FY27
  • Cumulative raw material cost increase of approximately 30% over last 6 months
  • Management guidance for further 4-5% increase in Q3 FY27

JK Tornel (Mexican Subsidiary) Performance:

  • Revenue reached ₹479 crore in Q2 FY27
  • EBITDA of ₹23 crore achieved
  • Company implementing modernization expansion project
  • Export sales from Mexico to US showed triple-digit growth quarter-on-quarter

Operational Highlights

Volume Growth (YoY):

  • Domestic markets recorded 22% volume growth
  • OE Market grew 25%, Replacement markets grew 20%
  • TBR volumes: OE market grew 76%, replacement market grew 9%
  • PLR volumes: Overall growth 14%, led by OE market growth of 35%
  • Farm category: Replacement market grew 16%, OE market grew 6%, exports grew 11%
  • 2/3W volumes: Replacement market jumped more than 2x, OE volumes grew 11%, exports grew 1%
  • Overall 2/3W segment growth: 34%

Capacity Utilization & Exports:

  • Capacity utilization levels in India remained above 90% across key segments (TBR, PLR, 2/3W)
  • Exports from India increased 14% sequentially over Q1 FY27 despite geopolitical uncertainties

Market Mix (Standalone):

  • Replacement market: 60%
  • OEM market: 30%
  • Export: 10%

Category Mix (Standalone):

  • Truck and Bus: 56%
  • Passenger Car Radials: 28%
  • 2-wheeler/3-wheeler: 6%
  • Non-truck bias: 10%

Strategic Developments

Premiumization Strategy:

  • Nearly 30% of passenger line volumes sold in H1 FY27 were premium SKUs (16 inch & above tyres)
  • This segment maintained high CAGR of nearly 20% over past 2-3 years

Electric Vehicle Focus:

  • EV volumes surged 24% over previous quarter
  • Company highlighted leadership position in electric truck & bus segment
  • MG Hector Tomahawk launched on JK Tyre's EV-specific Ranger HPe (18 inch size) tyre

Distribution Expansion:

  • Added numerous brand shops, 250+ Pitstops, and several mobility fleet accounts during quarter
  • Onboarded 80+ new dealers in Q2, with nearly 50% being rural dealers & distributors
  • Expanded OTR range of tyres with premium and application-specific products

Digital Transformation:

  • Committed to embedding emerging technologies including IOT, AI & ML into product design, manufacturing, supply chain optimization, and customer service

Management Commentary & Outlook

Economic Context:

  • Indian economy showing resilience with real GDP growth of 7.8% in Q1FY27 and expected 7%+ in Q2FY27
  • RBI revised FY27 GDP forecast upwards to 7.1% from 6.7%
  • Auto industry showing healthy demand cycle with broad-based growth across segments
  • CV sales growth 30%, passenger vehicle 26%, 2/3Wheelers 27% YoY

Raw Material & Pricing Strategy:

  • Management implemented 7% quarter-on-quarter increase in net selling realization (NSR) in Q2
  • This follows 4-5% increase in Q1 FY27
  • Cumulative NSR increase of 11-12% over 6 months
  • Planning further 4-5% NSR increase in Q3 FY27 to offset cost pressures
  • 65-70% of raw materials are crude oil-based (carbon black, synthetic rubber, butyl, steel cord)

Demand Outlook:

  • Healthy demand momentum expected to continue in Q3 FY27
  • Q4 expected to show good demand due to year-end closing for most OEMs
  • Some pressure anticipated in farm sector due to rainfall deficit in some agricultural regions

Capital Expenditure:

  • Capex guidance: ₹500 crore for balance period of FY27
  • Already completed ₹800 crore capex in H1 FY27
  • Expansion projects underway for TBR and PCR segments
  • Volume growth expected at 1:1.1 asset turn multiple from expansions

Working Capital:

  • Net debt increase attributed to 30% raw material price increase driving higher inventory values
  • Additional working capital requirement for higher volumes
  • Operating efficiencies expected to improve working capital management going forward