JK TYRE & INDUSTRIES LTD

Management reported that JK Tyre & Industries Limited achieved a consolidated turnover of Rs. 3,956 crore in Q1FY27, reflecting a 2% year-on-year increase. Domestic sales volumes grew by 25%, driven by strong demand across both replacement and OEM markets. However, the company faced challenges from a 20% rise in raw material costs, which impacted gross and operating margins, leading to a consolidated EBITDA of Rs. 268 crore and EBITDA margins of 6.8%. Management noted that the Indian auto industry experienced high double-digit growth, with the passenger vehicle segment growing by 23%. The company is optimistic about future demand, particularly in rural markets, and is expanding its distribution network. Additionally, management highlighted ongoing efforts to enhance operational efficiency and product mix, while also addressing challenges in the Mexico operations due to geopolitical disruptions. The balance sheet remains healthy, with a net debt of Rs. 4,945 crore as of June 30, 2026.

Management highlighted both growth opportunities and challenges faced during the quarter.