JK Tyre Subsidiary to Sell 40 Lakh Cavendish Industries Shares for ₹130.64 Crore

20 Nov 2025 , 11:21 AM

JK Tyre & Industries said its subsidiary JK Tornel, SA de CV has signed an agreement to sell 40 lakh equity shares of Cavendish Industries Ltd to SMMS Trust, which is registered under the Indian Trusts Act, 1882.

The company said the deal is valued at ₹130.64 crore for shares that carry a face value of ₹10 each. Even after the sale, Cavendish Industries will continue to be a subsidiary of JK Tyre, as the parent will still hold a controlling stake.

The stake being divested relates to JK Tornel’s shareholding in Cavendish Industries, a unit that added to the consolidated revenue and net worth of JK Tyre in the last financial year.

The company expects the transaction to close by November 30, 2025. Once the process is completed, JK Tornel will receive the entire payment from the buyer.

In its recent quarterly update released on October 27, JK Tyre posted a sharp rise in earnings, reporting a 64 percent jump in net profit to ₹221 crore. This compares with ₹135 crore in the same quarter a year earlier.

Revenue for the quarter increased to ₹4,011 crore, marking growth of 10.8 percent from ₹3,621 crore reported a year ago. EBITDA for the period came in at ₹521.5 crore, which is higher than ₹421.2 crore in the previous year, reflecting an improvement of 23.8 percent.

The EBITDA margin expanded to 13 percent in the quarter, supported by stronger sales volumes, lower input costs and continued efficiency gains across operations. JK Tyre also highlighted that its international subsidiaries, Cavendish Industries in India and Tornel in Mexico, recorded notable improvements, which added meaningfully to the overall performance for the quarter.

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