JK Tyre Aims for Double-Digit Revenue Growth in FY26

Key Highlights:

• JK Tyre is targeting double-digit revenue growth in FY26.
• The company plans to invest ₹250–300 crore in FY26.
• JK Tyre remains optimistic for growth.
• JK Tyre stays optimistic about exports despite new U.S. tariffs.
• The company is strengthening its manufacturing and supply chain.

JK Tyre & Industries Ltd is aiming for business growth in the financial year 2025–26 (FY26). The company expects its revenue to rise by double digits, thanks to growing demand for tyres in different types of vehicles and higher replacement needs. JK Tyre believes many good opportunities are coming up in both domestic and export categories.

To support this growth, the company has planned a maintenance investment of ₹250–300 crore for FY26. This is part of its larger capital expenditure plan of ₹1,400 crore, which was announced earlier for FY25 and FY26. JK Tyre is aiming for faster growth than the overall tyre industry in the financial year 2025–26 (FY26).

JK Tyre remains positive about its growth prospects in the coming years, despite reporting weaker financial results for FY25. Managing Director Anshuman Singhania said the company expects steady growth ahead. He pointed to several positive factors, such as the government’s focus on infrastructure, new vehicle launches, possible interest rate cuts, and a normal monsoon forecast.

For FY25, JK Tyre’s revenue from operations dropped to ₹14,692.92 crore from ₹15,001.78 crore in FY24. Its operating profit also declined to ₹1,677.83 crore, compared to ₹2,121.95 crore the previous year. This decline was mainly due to rising raw material costs. Profit after tax (attributable to owners) declined to ₹495.04 crore in FY25, compared to ₹786.23 crore in FY24.

JK Tyre Expands Production

JK Tyre is progressing with its capital expenditure (capex) strategy. The company is focusing on three main product categories: truck-bus radial (TBR) tyres, all-steel light truck radials (LTR), and passenger car radials (PCR). According to the company, production for LTR tyres will begin in July 2025, PCR tyres in September, and TBR tyres in November.

The company is increasing its production of high rim size tyres in India, especially for the replacement market. This move is expected to help JK Tyre improve its product mix and support faster growth. As per the officials, the newly launched commercial tyres—XM, XD, and XF—are already performing well in the market.

JK Tyre expects Growth Across All Segments in FY26

JK Tyre is expecting a steady rise in vehicle sales across all major categories in FY26. The company has forecasted mid-single-digit growth in truck sales, driven by ongoing economic activity. Passenger vehicle sales are expected to grow strongly, helped by several upcoming model launches. Two- and three-wheeler segments are also projected to see high single-digit growth, while tractor demand is likely to increase moderately due to a good monsoon.

JK Tyre Optimistic About Exports Despite U.S. Tariff Hike

The United States has recently announced a 25% tariff on truck and passenger car radial tyres, along with a 10% duty on other tyre types, causing concern among Indian tyre exporters. However, JK Tyre remains optimistic about its global business.

The company also stated that its wide export network, covering over 100 countries, including Latin America, the Middle East, Europe, and Southeast Asia, will reduce the impact of the U.S. tariff hike. JK Tyre's export volumes rose by 4% in the March quarter, showing that global demand for its products remains strong.

JK Tyre Strengthens Manufacturing, Supply Chain, and Looks Ahead to FY26 Growth

JK Tyre is stepping up its production and supply efforts to support future growth. The company currently operates 11 manufacturing plants, nine in India and two in Mexico, with a total annual production capacity of 35 million tyres. It also has 900+ branded retail outlets. To reduce its dependence on raw material imports, JK Tyre is increasing its natural rubber sourcing from India’s Northeast region. So far, plantations have been developed across 75,000 hectares, under a larger plan to cover 2 lakh hectares.

Although raw material costs rose 10% last year and couldn’t be fully passed on to customers, the company remains hopeful for better financial results in FY26. This optimism is backed by strong market demand and new production capacity becoming operational.