MRF Q1 FY26 Consolidated Net Profit Falls 12.3% YoY to ₹500.47 Crore

12 Aug 2025 , 01:34 PM

MRF Ltd., India’s largest tyre manufacturer, announced its unaudited financial results for the quarter ended June 30, 2025. The result shows a year-on-year decline in profit despite a healthy rise in revenue.

The company’s standalone revenue from operations rose to ₹7,560.28 crore in Q1 FY26. This is up 6.8% from ₹7,077.84 crore a year earlier. Stronger domestic demand and better pricing supported the increase. Total income also inched higher, at ₹7,685.77 crore. This is compared with ₹7,160.58 crore last year.

But higher raw material costs and an uptick in employee expenses cut into profits. Net profit fell 13.9% year-on-year to ₹484.23 crore from ₹562.55 crore. Earnings per share dropped to ₹1,141.74 from ₹1,326.41.

Margins were under pressure. Operating margin narrowed to 8.03% from 10.51% in the same period last year. Net profit margin slipped to 6.30% from 7.86%.

On a consolidated basis, revenue stood at ₹7,675.69 crore. This is a 6.6% increase over last year. Group net profit, however, declined to ₹500.47 crore from ₹571.02 crore. Consolidated EPS came in at ₹1,180.04 versus ₹1,346.38 in Q1 FY25.

MRF’s balance sheet stayed solid, with a standalone net worth of ₹18,671.64 crore and a debt-equity ratio of 0.03. Inventory turnover slowed to 5.27 times from 6.14 a year ago, pointing to weaker stock movement.

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