JK Tyre expects to log double-digit revenue growth in the financial year 2026 after a not-so-robust FY25. The company’s revenue and PAT last fiscal were impacted by low demand from commercial vehicle players amid a sharp increase in raw material prices.
“The tyre industry is expected to grow about 6-8% this year (FY26), which is equivalent to India’s GDP growth rate, and we are targeting a double-digit growth for us. There are ample opportunities available in the domestic and export markets. We are also expanding our capacity, and we are confident of mobilizing this capacity,” said Sanjeev Aggarwal, CFO of JK Tyre.
JK Tyre, a leading tyre supplier to CV manufacturers, expects a recovery in demand from OEMs in FY26. It also expects replacement demand to remain healthy and raw material prices to stabilise.
Anshuman Singhania, managing director of JK Tyre and Industries, said that the decline in FY25 performance was primarily due to rising raw material prices. “Last year alone, there was an approximately 10% increase in raw material costs, particularly affecting truck radial tyres. Unfortunately, this cost inflation could not be fully passed on to customers, as OEM demand remained subdued and they were not keen on picking up large volumes,” stated Singhania.
JK Tyre and Industries on Tuesday reported a 42.6% year-on-year (Y-o-Y) decline in its consolidated net profit at Rs 97.04 crore for the fourth quarter of the financial year 2025 (Q4FY25). Its revenue from operations grew by 1.63% to Rs 3,758.6 crore in Q4FY25. For the full financial year 2025, the company’s PAT stood at Rs 495.04 as against Rs 786.23 crore profit in the previous year.
However, the company’s performance improved significantly on a sequential basis as net profit in Q4FY25 jumped 88.35% quarter on quarter. This improvement gave a boost to JK Tyre shares as it surged more than 10% on Wednesday. The stock closed 10.4% higher at Rs 384 apiece on the NSE.
JK Tyre management also informed that they have earmarked a capital expenditure of Rs 1,400 crore over the next two years. This would be used in increasing capacity and expanding into the export market.