MRF Limited Earnings Summary — Q1 FY2027
MRF Records Revenue Growth in Q1 FY27 Amid Margin Pressure from Raw Material Volatility
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 4.6% sequentially in Q1 FY2027.
- Revenue of ₹8,416 Cr is 9.6% higher year-on-year.
- Revenue has compounded at 13.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹495 Cr is 1.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 10.4% annualised across the period.
- Operating margin stands at 11.8% in Q1 FY2027.
- Operating margin compressed by 218 bps year-on-year.
- Over the last two years operating margin has contracted by 434 bps.
- PBT margin is 7.7%.
- Expenses grew 12.4% against revenue growth of 9.6%.
- Operating profit of ₹991 Cr is 7.5% 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 55/100 (Healthy) 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 | Improving | 8,416 | 8,044 | 8,050 | 7,379 | 7,676 | 7,075 | 7,001 | 6,881 | 7,196 | 6,349 |
| Expenses | Improving | 7,425 | 6,739 | 6,651 | 6,253 | 6,605 | 6,000 | 6,166 | 5,870 | 6,037 | 5,437 |
| Operating Profit | Stable | 991 | 1,305 | 1,400 | 1,126 | 1,070 | 1,074 | 835 | 1,011 | 1,160 | 912 |
| Operating Margin | Stable | 11.8% | 16.2% | 17.4% | 15.3% | 13.9% | 15.2% | 11.9% | 14.7% | 16.1% | 14.4% |
| Other Income | Volatile | 195 | 153 | 50 | 108 | 129 | 115 | 98 | 113 | 84 | 94 |
| Interest | Stable | 88 | 86 | 91 | 90 | 98 | 98 | 94 | 84 | 85 | 93 |
| Depreciation | Stable | 448 | 442 | 438 | 445 | 429 | 433 | 415 | 410 | 396 | 385 |
| Profit Before Tax | Improving | 650 | 930 | 920 | 699 | 672 | 659 | 424 | 631 | 763 | 527 |
| Tax | Improving | 154 | 227 | 226 | 173 | 170 | 149 | 109 | 160 | 192 | 131 |
| Net Profit | Improving | 495 | 702 | 695 | 526 | 502 | 511 | 315 | 471 | 571 | 396 |
| Net Margin | Improving | 5.9% | 8.7% | 8.6% | 7.1% | 6.5% | 7.2% | 4.5% | 6.8% | 7.9% | 6.2% |
Key Takeaways
- Consolidated revenue increased 9.64% YoY to ₹8,415.50 Cr, driven by sustained demand in the automotive cycle.
- Cost of materials consumed spiked significantly to ₹5,854.23 Cr, up from ₹4,622.99 Cr YoY, exerting pressure on margins.
- Profit After Tax (PAT) declined slightly YoY to ₹495.35 Cr and dropped nearly 30% sequentially from Q4 FY26.
- The company continues to operate as a single primary segment (Rubber Products), maintaining its status as India's largest tire manufacturer.
- Other income saw a healthy increase to ₹195.06 Cr compared to ₹128.59 Cr in the same quarter last year.
- Management appointed new Senior Management Personnel (SMP) in IT and HR functions, signaling a focus on digital and human capital.
Management Guidance
Management remains focused on maintaining its dominant market position despite raw material volatility, emphasizing long-term resilience and a conservative debt-to-equity profile.
Sentiment Shift
Deteriorating
While top-line growth remains steady, the significant sequential compression in margins and net profit indicates rising input cost pressures that were not fully mitigated in the latest quarter.
Outlook
The outlook remains tied to the automotive replacement cycle and fluctuations in natural rubber and crude derivative prices. Continued focus on premium branding and distribution is expected to sustain market share.
From the Annual Report (Key Quotes)
“The Company's operations outside India do not exceed the quantitative threshold for disclosure.”
“Consequent to the introduction of New Labour Codes, the said liability is re-assessed at Rs. 63.24 Crores.”
Official Quarterly Documents
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This summary is AI-generated from MRF Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.