Company Overview
MRF Limited reported outstanding financial performance for FY 2025-26 with record consolidated turnover of ₹31,149 crores and 33% YoY growth in net profit to ₹2,426 crores. The company achieved significant operational milestones including crossing ₹30,000 crores in consolidated turnover and expanding into new product segments.
Financial Performance Highlights
Consolidated Results: Revenue from operations reached ₹31,149.01 crores (10.6% growth), with profit before tax at ₹3,222.14 crores. Basic EPS stood at ₹5,720.39 compared to ₹4,416.94 in previous year. Key financial ratios improved substantially with Return on Equity at 12.20% (up from 10.53%) and Debt Equity Ratio reduced to 0.02% through repayment of borrowings.
Dividend Declaration
The Board recommended a final dividend of ₹229 (2290%) per equity share, bringing total dividend for FY26 to ₹235 (2350%) per share. This includes two interim dividends of ₹3 each declared during the year. The record date for final dividend is 17th July 2026 with payment scheduled on or after 17th August 2026.
AGM and Corporate Governance
MRF will hold its 65th Annual General Meeting on 6th August 2026 via video conferencing to transact ordinary business including adoption of financial statements, dividend declaration, reappointment of directors Varun Mammen and Cibi Mammen, and reappointment of statutory auditors M M Nissim & Co LLP for 5 years. The company maintained strong corporate governance practices with 14 directors and compliance with all regulatory requirements.
Operational and Strategic Developments
The company made significant R&D investments of ₹483.27 crores including construction of a test track. Manufacturing operations span 10 facilities across India with exports totaling ₹2,324 crores. Employee strength stood at 16,283 with employee benefits expense of ₹2,045.93 crores, including provisions for gratuity and leave encashment.
Financial Position and Borrowings
Net worth stood at ₹20,452 crores with reserves and surplus of ₹20,448 crores. Borrowings reduced to ₹850.11 crores from ₹1,586.54 crores previous year, maintaining strong credit ratings of CARE AAA (stable) for long-term facilities and CARE A1+ for short-term facilities. The company has capital commitments of ₹1,513.75 crores remaining for execution.
Regulatory and Compliance Matters
Key audit matters included employee benefits valuation, sales warranty provisions, and litigation contingencies. The company recognized ₹150.19 crores provision for Extended Producer Responsibility levy. Contingent liabilities include ₹622.09 crores penalty from Competition Commission of India under appeal and various disputed tax demands totaling approximately ₹461 crores.
Subsidiary Performance
Significant subsidiaries contributed aggregate turnover of ₹3,974 crores and aggregate PAT of ₹66 crores, with MRF Corp Ltd (specialty coatings) generating PAT of ₹37.33 crores and MRF SG PTE LTD contributing PAT of ₹25.31 crores.
CSR and Sustainability
The company spent ₹21 crores on CSR activities against required spend of ₹39.41 crores, with the shortfall transferred to unspent CSR account. The company also addressed environmental obligations through EPR compliance and maintained cordial industrial relations across most facilities.