JK Tyre & Industries Limited Earnings Summary — Q1 FY2027
JK Tyre Reports Resilient Q1 FY27 Performance with 25% Domestic Volume Growth Amidst Raw Material Headwinds
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 6.6% sequentially in Q1 FY2027.
- Revenue of ₹3,946 Cr is 2.0% higher year-on-year.
- Revenue has compounded at 2.9% annualised over the last 10 quarters.
- Net profit of ₹44 Cr is 73.1% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -45.0% annualised across the period.
- Operating margin stands at 6.5% in Q1 FY2027.
- Operating margin compressed by 385 bps year-on-year.
- Over the last two years operating margin has contracted by 720 bps.
- PBT margin is 1.4%.
- Expenses grew 6.4% against revenue growth of 2.0%.
- Operating profit of ₹258 Cr is 35.8% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 39/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 3,946 | 4,223 | 4,223 | 4,011 | 3,869 | 3,759 | 3,674 | 3,622 | 3,639 | 3,698 |
| Expenses | Stable | 3,688 | 3,686 | 3,652 | 3,490 | 3,467 | 3,396 | 3,359 | 3,200 | 3,139 | 3,217 |
| Operating Profit | Softening | 258 | 537 | 571 | 521 | 402 | 363 | 314 | 421 | 500 | 481 |
| Operating Margin | Softening | 6.5% | 12.7% | 13.5% | 13.0% | 10.4% | 9.7% | 8.6% | 11.6% | 13.7% | 13.0% |
| Other Income | Volatile | 20 | -37 | -92 | 7 | 34 | 19 | 3 | 11 | 15 | -9 |
| Interest | Stable | 99 | 101 | 106 | 108 | 115 | 121 | 123 | 120 | 112 | 109 |
| Depreciation | Stable | 126 | 123 | 119 | 116 | 114 | 117 | 114 | 113 | 113 | 112 |
| Profit Before Tax | Volatile | 54 | 277 | 254 | 304 | 208 | 144 | 80 | 199 | 290 | 252 |
| Tax | Volatile | 11 | 89 | 45 | 82 | 53 | 42 | 23 | 55 | 79 | 77 |
| Net Profit | Volatile | 44 | 178 | 208 | 227 | 163 | 97 | 53 | 135 | 211 | 169 |
| Net Margin | Volatile | 1.1% | 4.2% | 4.9% | 5.7% | 4.2% | 2.6% | 1.4% | 3.7% | 5.8% | 4.6% |
Key Takeaways
- Domestic volumes grew by 25% YoY, driven by strong replacement (12%) and OE market (42%) demand.
- Profitability was significantly impacted by the sharp rise in raw material prices due to the ongoing West Asia crisis.
- The Mexico subsidiary (JK Tornel) faced operational disruptions from geopolitical issues and input constraints, reporting a segment loss of ₹45.83 Cr.
- Higher-value added and premium products continue to contribute an increasing share of the total volume mix.
- Finance costs remained stable at ₹99.08 Cr compared to ₹100.55 Cr in the same quarter last year.
- The company achieved a 'Best in Class' ESG rating for the third consecutive year with a score of 81.2.
Management Guidance
Management aims for double-digit revenue growth in FY27 through strategic expansions and improved operating leverage. They remain focused on cost reductions and increasing the premium product mix to recover margins impacted by oil-price volatility.
Sentiment Shift
Deteriorating
While volume growth remains robust, the significant contraction in margins due to external commodity pressures and Mexico-specific disruptions has weighed heavily on the bottom line.
Outlook
The outlook remains cautious in the near term due to raw material volatility (rubber and petro-based inputs), but optimistic for the full year based on strong OE demand and domestic replacement momentum.
From the Annual Report (Key Quotes)
“West Asia crisis led to a sharp increase in raw material prices which impacted our gross and operating margins.”
“Performance is driven by sharp focus on customer centricity, product excellence and disciplined execution.”
“JK Tyre remains confident to improve performance in FY27 with double-digit revenue growth.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from JK Tyre & Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.