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JK Tyre & Industries

JK Tyre & Industries Limited · NSE: JKTYRE · BSE: 530007

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Vishal @vishal #1

JK Tyre & Industries (JKTYRE): Q2 FY27 results analysis

(quarter ended 30 Sep 2026)

All figures consolidated, ₹ crore unless stated. Results released on 23 Oct 2026. EBITDA here excludes other income. YoY/QoQ %, margins and ratios are my calculations from reported numbers.

Metric Q2 FY27 YoY QoQ
Revenue from ops4,841+20.7%+22.7%
EBITDA (ex-OI)334−35.9%+29.5%
EBITDA margin6.9%13.0%6.5%
PBT94−69.1%+74.1%
Net profit (incl. minority)65−71.4%+47.7%
PAT margin1.3%5.7%1.1%
Other income / PBT−3%2%37%

For margin and ratio rows, the YoY and QoQ columns show the prior-period value. Sources: [1][2]

Source note: the company reports EBITDA of ₹343 cr (7.1%, vs 13.3%) and PAT of ₹60 cr [2]. Screener's ₹65 cr includes minority interest [1][5]. The differences are small.

Quality of earnings

The revenue line was strong:

  • Sales: record revenue; OEM sales +65% and domestic sales +32% after GST 2.0 [3].
  • Mix: replacement 61%, OEM 28%, exports 11% [4].
  • Mexico: JK Tornel rebounded to ₹479 cr [3].

The profit fall is operational. Raw-material costs rose ~20% QoQ in Q1, and management expected a further 8–9% in Q2 [8]. About 70% of tyre inputs are petro-linked [8].

Below EBITDA:

  • Tax: the rate rose to ~36% from ~27% [1], cutting PAT further.
  • Interest and D&A: interest was ₹109 cr and D&A ₹128 cr, both little changed [1].
  • Debt: borrowings rose to ₹6,125 cr from ₹4,882 cr in March, with CWIP at ₹980 cr [1]. This funds the ₹4,980 cr capex plan [6] plus working capital.

Base effect: Q2 FY26 was a strong quarter (13% margin), so part of the YoY fall is a high base. The QoQ improvement (+29.5% EBITDA) suggests price hikes are starting to work (my reading).

Margins (Chart 3)

EBITDA margin over five quarters: 13.0% → 13.5% → 12.7% → 6.5% → 6.9% [1]. Only a small recovery so far from the Q1 trough.

Guidance: what changed

  • Revenue: double-digit growth for FY27, guided after Q1 [7]. H1 revenue is +11% YoY [1].
  • Margin: after Q1, management targeted 10–11% operating margin for FY27 [7]. Another report cites 11–13% for H2 [6].
  • What H2 needs: H1 EBITDA margin is ~6.7%. Reaching 10% for the year needs roughly 13% in H2 (my calculation). That is a steep step-up from 6.9%.
  • Pricing: cumulative price hikes of ~11% up to August [6].
  • Earnings call: the Q2 call wasn't available at the time of writing.

Positives

  • Record revenue; strong OEM and domestic volumes [3]
  • Sequential EBITDA recovery of 29.5% [1]
  • Mexico business rebounding [3]

Concerns

  • Margin far below the guided H2 path (my view) [6][7]
  • Borrowings up ₹1,243 cr in six months [1]
  • High exposure to crude and rubber prices [8]

Things to track in Q3 FY27

  1. EBITDA margin vs the 11–13% H2 indication
  2. Crude and natural rubber prices; further price hikes
  3. Borrowings and capex commissioning
  4. Mexico (JK Tornel) profitability

Not a buy/sell recommendation. Facts are sourced; opinions are labelled.

Sources [1] Screener.in – consolidated · [2] Kotak Neo, 23 Oct 2026 · [3] Autocar Pro – Q2 FY27 · [4] Multibagg – Q2 FY27 presentation · [5] Whalesbook – Q2 FY27 · [6] Sahi – FY27 outlook and capex · [7] Quartr – Q1 FY27 summary · [8] Autocar Pro – Q1 FY27 raw materials

Charts:

(1) last 5 quarters revenue & net profit [1];

(2) FY23–FY26 revenue & net profit [1];

(3) EBITDA and PAT margin (own calc. from [1]).

JK Tyre & Industries Quarterly
JK Tyre & Industries Quarterly
JK Tyre & Industries Annual Results
JK Tyre & Industries Annual Results
JK Tyre & Industries Margins
JK Tyre & Industries Margins
Author's disclosure: Not invested

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