JK Tyre & Industries Ltd Management Discussions

Economic and Business Environment

India maintained growth during FY 2025-26, sustaining its position as the fastest-growing major economy, with GDP exceeding 7% amid lower inflationary pressures.

This remains notable amid an uncertain global environment marked by geopolitical tensions, trade disruptions and divergent growth-inflation trends. The recent West Asia war added further shocks and is likely to moderate global growth through supply chain disruptions and higher oil prices.

The Indian business environment has shifted from recovery to expansion, driven by strong public infrastructure spending, fiscal reforms and a revival in private consumption. Capex rose to ~4% of GDP, focused on Gati Shakti investments in highways, renewable energy and digital infrastructure, positively impacting the automotive sector and tyre demand.

The services sector remained the largest contributor of ~55% of the GDP with Global Capability Centres supporting growth. The industrial sector, aided by PLIs and construction spending, contributed ~28%. Agriculture sector (~17%) benefitted from a good monsoon and higher output, boosting rural demand and easing inflation. Rural incomes and consumption were further supported by government schemes.

FY 2025-26 also witnessed major FTA announcements, aligning with the Governments vision of strengthening the domestic economy and deepening Indias participation in global trade. Another key development for the Indian economy in 2025 was the recognition of its fiscal resilience by global rating agencies, reflected in three sovereign credit rating upgrades.

GST collections hit multiple highs in FY 2025-26, aligned with nominal GDP, while rate rationalisation boosted demand, competitiveness and revenue resilience.

High-frequency indicators (e-way bills, automobile sales, UPI transactions and tractor sales) signal strengthening economic momentum post-reforms. The Government continues efforts to improve ‘Ease of Doing Business.

The outlook for the Indian economy in FY 2026-27 is one of resilient expansion, though growth is expected to slow down due to persistent global headwinds, and higher inflationary pressures. Yet, GDP growth is likely to remain above 6%.

Automotive Industry

India reinforced its position as one of the worlds leading automotive markets in FY 2025-26, aided by resilient economic activity, improved rural demand, GST-led a_ordability benefits and stronger momentum in the second half of the year. During the year, total vehicle production stood at 3,59,51,010 units during FY 2025-26, while domestic sales grew across categories: passenger vehicles rose 7.9% to 46.43 Lakh units. The GST was significantly slashed in the sub <4000 MM segment (petrol/CNG =1200cc, diesel =1500cc, and length =4000MM) from 28% to 18%. This shift makes entry-level models more affordable. While the compact car vehicle sales grew by 5%, the consumer preference for SUVs continued with domestic sales rising by 18%.

Commercial vehicles grew 12.6% to 10.80 Lakh units, three-wheelers increased 12.8% to 8.36 Lakh units, two-wheelers advanced 10.7% to 2.17 Crores units. This broad-based performance reafirmed Indias scale advantage and its continued leadership in the global two-wheeler market.

Tractor Sales rose by 22% to 11.60 Lakh units supported by a good monsoon, rural demand and GST 2.0. Consumer preference shifted from entry-level to higher-horsepower tractors for farming, haulage and commercial use.

Premiumisation continued across segments, with a shift to SUVs in PVs and from entry-level to premium bikes in 2W. GST rationalisation for the sub-4,000 MM small-car segment improved a_ordability, while EV penetration doubled to ~4% in PVs and reached ~7% in 2W, with stronger conversion in urban scooters. Rising fuel costs and stricter emission norms are expected to further encourage this trend. India ranks third globally in annual freight tonnage, with its freight transport industry estimated to move over 4.6 Billion tonnes of goods annually and generate demand of 2.2 Trillion tonne-kilometres. The commercial vehicle segment recorded double-digit growth, driven by infrastructure projects and GST 2.0, which streamlined logistics and boosted freight demand. Scrappage policy enforcement further supported demand.

While diesel remains dominant, alternative fuels are gaining traction; bus electrification is rising, led by State Transport Undertakings.

The FY 2026-27 outlook for the industry remains positive and stable with moderate growth rates. However, material input costs are likely to escalate. In addition, implementation and compliance of regulatory norms such as CAFE III, BS7, and TREM V is likely to add to cost pressures over the long run.

The Tyre Industry

TheIndiantyreindustry,drivenbytechnology,contributessignificantly to the economy, with five of the worlds top 30 companies based in India. It recorded double-digit growth in FY 2025-26, supported by demand from overall economic expansion.

Policy supports boosted growth, with GST on tyres reduced from 28% to 18% and lower tractor tyre taxes improving a_ordability and supporting OEM and replacement demand. Growth was largely domestic led, with the aftermarket dominant, while exports faced headwinds from tari_ uncertainty, geopolitical volatility, logistics disruptions and high freight costs.

Raw material inputs account for over 60% of tyre costs, with dependence on imported natural and synthetic rubber. After a stable first half, volatility rose toward year-end due to a depreciating Rupee and higher crude prices. The long-standing inverted duty structure remains an unresolved issue.

Despite these challenges, long-term drivers remain intact. Indias large vehicle base, logistics and e-commerce growth, infrastructure expansion and rising premiumisation and radialisation. With recovering demand and strong policy support, the industry is expected to quadruple in the next two decades, aligned with the Vision of Viksit Bharat 2047.

JK Tyre: An Overview

In FY 2025-26, JK Tyre focused on translating prior investments in capacity, technology and portfolio into measurable outcomes. The inauguration of the expanded and modernised state-of-the-art Passenger Car Radial manufacturing facility at Banmore, Madhya Pradesh, marked an important milestone during the year. High asset utilisation, premiumisation-led mix improvement and disciplined capital management supported stronger margins and financial resilience, while a richer premium mix, smart tyre solutions and sustainable innovation reinforced its technology-led positioning. The Company also scaled its mobility solutions platform, deepened its presence across OEM, replacement and fleet ecosystems, and strengthened service responsiveness through digital interfaces. JK Tyre advanced long-term competitiveness through export discipline, renewable energy adoption and stronger sustainability alignment. Internationally, it remained selective and margin-focused, while in India it built relevance through innovation, premiumisation and connected mobility solutions. Smart manufacturing, intelligent platforms reinforced its position as a resilient, technology-led mobility solutions enterprise.

Brand JK Tyre

FY 2025-26 marked a year of more integrated, measurement-led brand building for JK Tyre, focused on strengthening salience, engagement and premium positioning. As journeys became digital first, the Company aligned content, media, retail activation and collaborations to evolving behaviour, enabling sharper, segment-specific communication across passenger, truck and farm categories.

Digital remained central, with destination pages, retargeting and in-market targeting improving discoverability and lead quality. A diversified media mix (TV, digital news, print and regional activation) helped maintain scale while sharpening local and segment relevance.

Collaborations, motorsports and enthusiast platforms reinforced aspirational, performance credentials, while ICOTY/IMOTY ampli_cation, motorsport campaigns and Levitas promotional initiatives deepened a_nity and strengthened JK Tyres reach, performance and contemporary relevance.

Motorsport

FY2025-26wasahigh-visibilityyearforJKTyresmotorsportplatform, reinforcing its role in Indias racing culture and performance-led identity. Motorsport served as a live demonstration of engineering capability, brand relevance and consumer engagement. Racing, events and premium platforms deepened connections with performance audiences, while high-visibility associations, digital ampli_cation and experiential initiatives such as Levitas ‘Fast & Fabulous and XTREME drift storytelling strengthened aspirational appeal, driving consumer traction, digital reach and brand salience in premium segments.

During the year, JK Tyre ‘Levitas Ultra set a Guinness World Record for the highest-altitude car drift at Umling La, Ladakh (5,798 m/19,023 ft), achieved by JK Tyre Motorsport athlete Sanam Sekhon on 31^st July 2025, showcasing Levitas technological prowess, grip and endurance in extreme conditions.

JK Tyre continues to develop motorsport talent nationally and internationally; prot?g? Kush Maini became the first Indian to win a Formula 2 race at the Monaco Grand Prix.

The Company built cultural relevance through region-specific motorsport activations and experiential platforms. Collaborations and outreach in markets like the Northeast, alongside enthusiast engagement, expanded motorsport beyond the track into lifestyle and community spaces, reinforcing its role in driving performance credibility, consumer a_nity and differentiated recall.

TREEL

In FY 2025-26, TREELs relevance deepened as JK Tyres smart mobility platform evolved into a broader intelligent tyre solutions capability. This was driven by the launch of Indias first embedded smart tyres for passenger vehicles in November 2025 (14"–17" aftermarket rollout) with TPMS-based sensing and a 5–7-year sensor life, advancing connected, data-enabled mobility.

This evolution is significant as customers increasingly seek safety, uptime visibility and predictive performance over standalone features. Around 11 Million data points per month now support analysis and decision-making, strengthening the digital backbone. With smart tyre SKUs and closer alignment of embedded intelligence, engineering and mobility solutions, TREEL reinforced JK Tyres position in safety, performance and intelligent mobility.

Personal Mobility

Passenger Car Radial

In FY 2025-26, JK Tyre strengthened its passenger car radial (PCR) business through sharper premiumisation, broader portfolio depth and closer alignment with evolving mobility needs. It expanded into higher rim-size and performance segments while reinforcing its PCR range across hatchbacks, sedans, SUVs and premium vehicles, improving positioning in both replacement and OEM markets. A major development was the stronger commercial rollout of premium and intelligent mobility offerings in PCR. Embedded smart tyres launched with four UX Royale Smart SKUs, combining safety, connectivity and performance, while the Levitas range and other premium products strengthened presence at the upper end. To elevate premiumisation and SUV appeal through the Ranger Series, JK Tyre partnered with Mahindra to develop 18-inch tyres for Thar and Thar Roxx, aligning with growing demand for performance-oriented SUVs.

The Ranger Series demonstrated strong capabilities across AT, HT, XAT and MT variants, delivering consistent performance across diverse terrains including snow, deserts and plateaus, in collaboration with Mahindra Adventure.

Capacity and product strategy remained aligned. The Banmore PCR expansion ramp-up strengthened support for premium demand, domestic replacement and export readiness, while the Mahindra partnership for 18-inch Thar and Thar Roxx fitments reinforced relevance in higher-value PVs. Stronger premium storytelling, intelligent rollout and expansion in high-value categories further strengthened JK Tyres PCR positioning.

2/3 Wheeler

In FY 2025-26, JK Tyre strengthened its 2/3 Wheeler presence by aligning with evolving mobility formats, performance needs and product differentiation. It advanced fit-for-purpose solutions combining durability, efficiency and application-specific relevance, supporting urban and last-mile mobility.

The Company strengthened its performance-led positioning, with the extended Blaze RYDR portfolio and motorsport linkages reinforcing appeal among enthusiast riders. This improved visibility in a segment increasingly driven by riding experience, style and differentiated use cases, alongside price and durability.

These efforts positioned JK Tyres 2/3 Wheeler business within a broader mobility transition shaped by electrification, performance orientation and evolving customer expectations.

Commercial Mobility

Truck and Bus

In FY 2025-26, JK Tyre reinforced its truck and bus position by aligning products and fleet solutions with commercial mobility needs. It benefitted from OEM, replacement and fleet participation, supported by TBR and all-steel radial capacity expansion, improved operating leverage and sharper premiumisation.

The year reflected a shift from product-led selling to integrated lifecycle management in trucks and buses. The expanding Mobility Solutions platform and digital fleet-service interventions improved uptime visibility, responsiveness and customer engagement across key corridors, while advancing technology-enabled fleet applications and cost-per-kilometre solutions.

The Company has garnered a majority share in the EV bus segment, with its EV-specific tyres (Jetway JUXe) widely accepted across major OEMs.

JK Tyre strengthened its position in the growing tipper segment with JDC XD and JUC XM, catering to both OEM and replacement markets.

Recent launches, Jetway JUM XM, Jet LUG HD and Jet RIB XLM, gained strong traction in FY 2025-26 in the truck and bus segment, offering best-in-class mileage, cost savings and improved efficiency.

Light and Small Commercial Vehicles

In FY 2025-26, JK Tyre strengthened its light and small commercial vehicle presence by aligning product development with evolving usage, diverse applications and cleaner mobility trends. With growth in intra-city logistics and last-mile delivery, the segment remained relevant for replacement and OEM opportunities, supported by a focus on durability, efficiency and application fitness.

In the Light and Small Commercial Vehicle segment, JK Tyre strengthened its presence by adding new sizes in the Steel King and Jumbo HD series, enhancing durability and enabling confident performance in challenging terrains.

Farm

JK Tyre reinforced its leadership in the farm tyre segment through technological innovation and disciplined market development. A key milestone was the launch of the premium SHRESTH PLUS series at the Hisar Krishi Expo, engineered for higher-HP tractors and strengthening its premium presence.

The Company supported product adoption and visibility through participation in major agricultural expos, leveraging high-footfall platforms with structured engagement and interactive stalls. The Kisan Mitra programme remained central to JK Tyres grassroots outreach, supported by ‘Sarpanch Samaroh engagements with local leaders to build awareness and credibility. The Company also observed Kisan Diwas (23^rd December) nationwide and collaborated with ITC under ‘Choupal Mahotsav to deepen farmer engagement. In line with rising digital adoption in the agri ecosystem, JK Tyre expanded outreach through partnerships with leading tractor platforms, enhancing visibility of its premium farm tyre range.

O_-the-road Tyres

In FY 2025-26, JK Tyre strengthened its off-the-road tyre business through expansion in construction, mining and specialised industrial segments. At EXCON 2025, it launched four OTR tyres, including SKY GRIP, GTL PLUS and VEM AS-UG, for equipment such as boom lifts, wheel loaders, backhoe loaders and underground mining shuttle cars expanding their presence in demanding, application-specific segments requiring durability, load bearing and terrain performance.

The year also saw the Company deepen its relevance within the industrial and infrastructure ecosystem through a broad OTR customer base spanning equipment and construction OEMs, reinforcing its reach across diverse end-use segments.

Together, these developments strengthened JK Tyres OTR position by combining portfolio expansion with deeper OEM connectivity, supporting its push into higher-value, performance-intensive applications.

Rural Marketing

Rural India has emerged as a growth engine, boosting vehicle ownership and tyre replacement demand. To capture this, JK Tyre launched a Rural Business vertical in FY 2025-26 with Pan-India initiatives during the year and has widened its distribution footprint by appointing Rural Distributors dealers in FY 2025-26 thus expanding its presence in over four hundred unrepresented markets and ensuring greater product access for its customers. This has yielded encouraging business results. The momentum is likely to be sustained in FY 2026-27.

Retread

In FY 2025-26, JK Tyre strengthened its retreading business as a key pillar of lifecycle efficiency, customer economics and sustainable mobility. Through JK Treads, it expanded to 90+ centres, serving 450+ customers with ~50 new dealers, reinforcing retreadings role in extending tyre life and reducing cost per kilometre.

The Company enhanced process quality and discipline across its retread network. JK Retread Centres followed standard procedures with specialised equipment, while monorail systems at eight facilities improved control and service quality by preventing tyre floor contact, strengthening product consistency and reliability.

Sustainability remained integral, with JK Tyre expanding solar-powered retread infrastructure to four centres and introducing 10 new products, including EV-relevant offerings, aligning business with evolving market needs and resource-e_cient, environmentally responsible mobility.

Channel Development

During the year, JK Tyre strengthened its channel network through retail expansion, dealer deepening and digital enablement. It closed the year with ~900 outlets and a record 700+ dealer additions, taking its Pan-India base to 6,000+ partners, enhancing reach, accessibility and responsiveness.

The Company enhanced channel effectiveness by improving last-mile visibility and service access. Over 800 brand shops remained visible on Google platforms, driving ~80,000 monthly engagement actions, 29,000 calls and 53,000 store visits. The rollout of JK Tyre Steel Wheels expanded reach into smaller towns, offering integrated tyre sales, services and instant claims for non-truck tyres.

Channel development also emphasised engagement quality and service integration, with connected retail points supporting warranty registration, complaint routing, service guidance and customer-interface management.

Fleet Management and Mobility Solutions

The long-standing and well-structured JK Tyre Fleet Management programme continued to be an Industry benchmark providing cradle to grave solutions to Truck & Bus fleets. Starting from choosing the right products, periodic tyre inspection, scrap tyre inspection and driver training, this comprehensive program helps the customers optimise the cost per kilometer and derive greater value by adopting a preventive approach. Under the programme umbrella, the dedicated fleet management team continues to provide expert guidance covering 1,500+ Truck fleets covering 2 Lakh vehicles based throughout the country.

During the year, JK Tyre continued to scale its mobility solutions business as a technology-enabled platform focused on uptime, lifecycle efficiency and service integration for fleet customers. The network expanded to over 50 service hubs, serving a fleet base of 25,000 vehicles across key freight and mobility corridors. This growth reflected the increasing relevance of a solutions-led model that combines products, service infrastructure and digital monitoring to support more efficient fleet operations.

JK Tyre also expanded its connected service architecture through 500+ pit stops, 120 + Truck Alignment centres branded as ‘Truck Wheels and other network of authorised service centres, enabling round-the-clock support across the country.

JK Tyre deepened its presence in pay-per-kilometre models, including EV bus applications. With its integrated mix of smart tyre technology, real-time coordination and service-led engagement, mobility solutions continued to strengthen JK Tyres position as a provider of connected and outcome-oriented fleet support.

Service: A Brand Di_erentiator

JK Tyre strengthened its service proposition through a connected, responsive and digitally enabled support architecture. It enhanced engagement across OEMs, replacement and fleet customers through faster claims resolution, improved systems and expanded digital and mobility solutions, shifting experience beyond product supply to outcome-linked service focused on quality, uptime and responsiveness.

A key development during the year was the continued strengthening of the Companys digital claims and service ecosystem. Over 90% of customer complaints were processed digitally, and over 80% of non-truck category complaints were resolved within 15 minutes. Warranty transparency was also enhanced through product purchase registrations at the point of sale.

Together, these measures strengthened distribution and service points as customer touchpoints, enhancing convenience, reliability and confidence across the ownership lifecycle.

Road Safety

JK Tyre continued to advance road safety by partnering stakeholders like Delhi Police and SIAM to amplify its Road Safety awareness programmes. Marquee events such as the JK Tyre Constitution Club of India Rally for Parliamentarians ampli_ed Road Safety Awareness at the highest level.

For commercial drivers tyre safety training, well-being-linked outreach programmes such as regular health check-ups and vision camps were conducted. These efforts reflect JK Tyres recognition of commercial drivers as critical partners in the mobility ecosystem and its commitment to supporting safer roads through sustained engagement.

Sales Training and Capability Building

JK Tyre continued to strengthen its sales team capability through structured learning focused on digital readiness, leadership development and execution excellence. The field team received experiential product training across categories, micro-learning technical modules and finance-for-non-finance programmes. Communication skills training was prioritised across functions. Engagement was amplified through gamified learning and assessments.

International Business

InFY2025-26,JKTyresinternationalbusinesswasshapedbyaselective, region-led and margin-conscious export strategy. The Company prioritised pricing discipline, receivable security and market-specific portfolio allocation over volume expansion. It also strengthened international competitiveness through sharper product-market alignment, calibrated execution across geographies and a focus on profitability amid trade uncertainty. These interventions supported the quality and resilience of the export business, reinforcing a stable- outlook for overseas markets.

Research and Development

During the year, JK Tyre strengthened its R&D and technology capabilities through a globally connected technical ecosystem spanning Mysuru, Chennai, Milan and Mexico, integrating product development, testing, validation and commercial deployment. Anchored by the ‘Raghupati Singhania Centre Of Excellence, RPSCOE – Global Tech & Innovation Centre in Mysuru, backed by cumulative investment of over _350 Crores, and 250+ scientists and engineers, this ecosystem supported advanced work in materials, compounds, design, testing and market-aligned product development.

The year saw continued progress in sustainable and application-led innovation. JK Tyre advanced work in green tyres, silica compound optimisation, sustainable raw materials and lifecycle-oriented product design, including UX Green/UX Royale Green formulations with 80% eco-friendly materials. It also strengthened lower rolling resistance and EV-oriented development, while improving durability, repairing sustenance and casing integrity across categories.

Testing and validation capabilities advanced during the year, marked by the inauguration of Indias first Wet Grip on Worn Tyre testing machine at NATRAX in November 2025. This strengthened JK Tyres ability to assess safety and performance across the tyre lifecycle. The Company also leveraged AI-driven testing acceleration, intelligent optimisation systems and collaborations with IIT Madras, IIT Kharagpur and other academia-industry platforms, reinforcing innovation aligned with safety, sustainability, regulatory readiness and evolving mobility needs.

EV Tyres

JK Tyre continued to advance its EV tyre portfolio across passenger, commercial and 2/3 Wheeler segments. Product development focused on improving rolling resistance, efficiency, torque handling and lifecycle performance to meet the distinct operating needs of electric vehicles.

As the automotive industry transitioned toward sustainable mobility, JK Tyre focused on EV-oriented tyres, including JUXe for commercial vehicles, Ranger HPe for passenger cars and E-Blaze for the 2/3 Wheeler segment, incorporating next-generation technologies.

In passenger car segment, JK Tyre strengthened its EV portfolio with products such as Ranger HPe, focused on efficiency, lower rolling resistance and range optimisation. In commercial vehicles, development of 295/90R20 JDL XM2 for EV truck and tractor-trailer applications with higher load capacity, torque handling, retreadability and lower total cost of ownership.

JK Tyres EV tyre roadmap also covered smaller mobility formats. In the 2/3 Wheeler segment, the Company continued developing low rolling resistance tyres for EV platforms using new reinforcement materials and dual tread technology, positioning EV tyres as a key part of its innovation and premiumisation agenda in FY 2025-26.

Manufacturing Excellence

During the year, JK Tyres manufacturing focus shifted from capacity creation to capacity optimisation, with recent investments across PCR, TBR, and all Steel LCV radial driving stronger utilisation, better throughput and improved mix quality. Debottlenecking, balancing initiatives and digitally enabled process control further improved productivity, fixed-cost absorption and customer responsiveness across categories.

A key milestone was the ramp-up of commissioned assets, including Phase III of the Banmore passenger car radial expansion, inaugurated on 14^th January 2026, which raised capacity to 30,000 tyres per day, or about 10.5 Million tyres annually. Capacity expansion through Banmore PCR, Laksar TBR enhancement, and all-steel radial additions and Mexico modernisation strengthened JK Tyres premium, radial and export-ready product categories.

Digitalisation gained further ground within manufacturing through a multi-year smart factory roadmap, moving key plants toward connected and intelligent maturity. Supported by data layers, dashboards, AI/ML-enabled monitoring and process analytics, these efforts improved uptime, visibility and shop-floor decision-making, strengthening quality, efficiency and long-term competitiveness.

Raw Material

In FY 2025-26, the Company strengthened raw material resilience through disciplined sourcing, and supply assurance. Volatility was managed through planned purchases, timely re-hedging, alternate sourcing and selective inventory build-up, including the March 2026 Strait of Hormuz-linked disruption. Softer input costs supported cost stability through formula-linked procurement, timely contracting, inventory discipline and supplier coordination.

In parallel, natural-rubber localisation advanced through Project INROAD, with nearly 90% of identified North-East plantations showing progress and production expected from mid-2030. The Company also progressed sustainable material innovation, including tyres with up to 80% sustainable materials. Supplier partnerships were deepened to improve reliability, quality, responsiveness and disruption management, with sourcing practices increasingly embedding traceability, certified inputs and responsible procurement.

Human Resource: Management & Development

In FY 2025-26, JK Tyre strengthened its people-centric agenda by fostering a high-performance, future-ready culture focused on engagement, inclusion, continuous improvement and well-being. Regular feedback mechanisms and employee platforms across locations helped shape workplace policies and enhance belongingness. The Company also recognised employee contribution through initiatives such as the Chairmans Cup for Quality Control Circles and the Champions Cup for Lean Six Sigma-led projects, reinforcing excellence, problem-solving and innovation while advancing diversity and inclusion. Gender diversity at manufacturing locations was a focus area.

Corporate Social Responsibility

During the year, JK Tyre advanced its CSR agenda through focused interventions in livelihood enhancement, skill development, education, healthcare, water conservation and environmental sustainability. These initiatives positively impacted over 1.3 Lakh + individuals, primarily underprivileged and marginalised communities, especially women, children and older adults around the Companys manufacturing locations.

The year saw continued emphasis on skill development to build community self-reliance. A skill development centre was established in Kankroli.

CSR at JK Tyre remained aligned with sustainability and materiality priorities, strengthening trust, reducing social risk and supporting long-term stakeholder well-being.

JK Tornel

During FY 2025-26, JK Tornel maintained strong operational discipline and strategic clarity amid volatile global trade conditions. It prioritised profitability, portfolio optimisation and institutional strengthening over volume, with export allocations reinforcing resilience, protecting earnings quality and supporting long-term value creation.

JK Tornel progressed on capacity and market expansion. It added ~40 distributors (140+ total), launched 32 new tyre sizes in the US, and implemented a calibrated 5-6% TBR price increase to support realisations amid cost pressures.

To enhance premium positioning and growth readiness, JK Tornel strengthened its operating and go-to-market infrastructure. A new northern warehouse for higher-margin above-16-inch tyres improved service and lead times, while mass merchandise channels broadened reach. FY 2025-26 also marked the start of OE supplies to Kia Mexico, with more SKUs planned, strengthening market presence, competitiveness and readiness for North America growth.

Digital and IT

In FY 2025-26, JK Tyre advanced digital and IT as cross-functional enablers of agility, decision quality and customer responsiveness. Its transformation moved toward a connected enterprise model spanning manufacturing, customer interfaces, service systems and workflows, supported by smart factory initiatives, connected-product platforms and stronger data-led visibility.

As digital integration deepened, information security and system reliability gained importance, reinforcing digital and IT as a foundation for a more intelligent, connected and future-ready enterprise.

Financial Performance for FY 2025-26

Particulars	Year Ended		Year Ended
	31st March 2026	31st March 2025	31st March 2026	31st March 2025
	Standalone		Consolidated
Sales	14,478	12,880	16,188	14,543
Other Operating Income	135	139	139	150
Revenue from Operations	14,613	13,019	16,327	14,693
Operating Profit (EBITDA excluding Other Income)	1,908	1,439	2,031	1,599
Other Income	56	77	58	79
Less: Finance Cost	388	431	428	476
Cash Profit (PBDT)	1,576	1,085	1,661	1,202
Less: Depreciation and Amortisation	405	393	471	456
Profit before Share of Profit/(Loss) in Associates, Exceptional Items & Tax	1,171	692	1,189	746
Add/(Less): Exceptional Items	(169)	(17)	(146)	(32)
Profit before Tax	1,002	675	1,043	714
Less: Provision for Tax	254	181	269	198
Profit after Tax	748	494	774	516
Add/(Less): Share of Profit/(Loss) in Associates	-	-	2	(7)
Profit for the Year	748	494	776	509

Risks and Concerns

JK Tyre operates in a competitive tyre industry facing multiple risks that may impact operations and financial performance. Despite these challenges, it remains committed to prudent risk management through cost control, strategic diversification and continued R&D investment to mitigate risks and capitalise on opportunities.

While JK Tyre remains optimistic about long-term growth, it emphasises vigilant risk management, proactively identifying risks across financial, operational, sectoral, ESG, IT and cyber domains, with mitigation plans continuously monitored through internal and Board-level risk committees.

Key Business Risks

Uncertain Global Economic Scenario

The present geopolitical landscape poses risks for the tyre industry, given its global integration affecting raw material sourcing and export access. This turbulent environment brings supply-chain disruptions and demand volatility, potentially slowing post-pandemic economic recovery.

JK Tyre addresses global economic risks by expanding its customer base and diversifying supply chains to enhance agility and innovation. It prioritises strong customer and supplier relationships, conducts rigorous risk assessments and fosters a resilient, adaptable organisation to navigate uncertainty and capture opportunities.

Regulatory Changes

JK Tyre remains committed to safety, environmental standards and product quality amid evolving regulatory requirements.

For the Indian market, the Ministry of Environment, Forest and Climate Change mandated ‘End-of-Life Tyre (ELT) management covering disposal and recycling, requiring tyre companies to procure EPR certificates from approved recyclers; the Company is fully compliant.

Cybersecurity

In todays digital age, robust cybersecurity is essential for safeguarding sensitive data and maintaining operational integrity. JK Tyre mitigates cyber risks through regular vulnerability assessments, robust security protocols and continuous network monitoring.

By fostering cyber awareness and investing in advanced technologies, the Company stays ahead of evolving risks, protecting digital assets and strengthening stakeholder trust.

JK Tyre remains committed to excellence and proactive risk management, reinforcing a secure and sustainable future.

Internal Control Systems

The Company has established internal control systems aligned with its size and operations, ensuring effective checks for accurate financial reporting and safeguarding assets and interests.

Internal audits were conducted throughout the year under a systematic plan covering all functions. Reports were reviewed by senior management and the Audit Committee, which assessed observations and actions to ensure effectiveness; recommendations were monitored and improvements implemented with ongoing management review.

The IT framework is built on a robust ERP system linking plants, sales offices and head office, enabling reliable transactions and informed decision-making. Strong control and management reporting systems support performance and continuous improvement.

Cautionary Statement

The Management Discussion and Analysis report contains forward- looking statements relating to expectations or projections, including strategy, product development, market position, expenditure and financial results. Actual results may differ materially, and the Company assumes no obligation to revise such statements based on subsequent developments, information or events.