JK Tyre Q4 Profit Jumps 83%, Company Approves Rs 4,980 Crore Expansion Plan

Key Highlights

• Q4 net profit jumped 83% year-on-year.

• Rs 4,980 crore expansion plan approved.

• Tyre capacity to rise 24% by FY2030.

• FY2026 revenue reached Rs 16,384 crore.

• Board recommended Rs 4 dividend per share.

JK Tyre & Industries has reported a strong financial performance for the fourth quarter of FY2026, with consolidated net profit rising 83 percent year-on-year. Along with the earnings announcement, the company has also approved a massive Rs 4,980 crore capacity expansion plan to strengthen its position in the Indian tyre market.

The company said the expansion will mainly focus on increasing production capacity for Truck & Bus Radial (TBR) tyres and Passenger Car Radial (PCR) tyres to meet rising domestic demand across segments.

JK Tyre Approves Major Capacity Expansion

The board of directors of JK Tyre has approved a phased expansion programme at its Chennai Tyre Plant and Vikrant Tyre Plant. The expansion includes:

• Increase in Truck & Bus Radial tyre capacity at both Chennai and Vikrant plants

• Expansion of Passenger Car Radial tyre production at the Chennai facility

The company stated that the proposed expansion will raise its TBR and PCR production capacity by 24 percent by FY2030.

At present, JK Tyre has a combined TBR and PCR production capacity of 210 lakh tyres per annum, including capacities that are currently under implementation. The company also revealed that utilisation levels are running above 90 percent, highlighting strong market demand.

According to the company, the expansion plan is aimed at maintaining and strengthening its market presence as the Indian tyre industry continues to witness healthy growth.

Expansion to Be Funded Through Internal Accruals and Debt

JK Tyre said the Rs 4,980 crore expansion programme will be funded through a mix of internal accruals and debt.

The company believes that increasing manufacturing capacity now will help it cater to future demand growth in both commercial vehicle and passenger vehicle tyre segments.

JK Tyre Q4 FY2026 Financial Performance

For the January–March quarter of FY2026, JK Tyre reported consolidated revenue of Rs 4,233 crore.

The company’s EBITDA increased 42 percent year-on-year to Rs 546 crore, while EBITDA margin stood at 12.9 percent during the quarter.

Other key financial figures for Q4 FY2026 include:

• Profit Before Tax (PBT): Rs 277 crore

• Profit After Tax (PAT): Rs 188 crore

• Net profit growth: 83 percent year-on-year

The company attributed the strong performance to healthy domestic demand, improved sales volumes and growth in the original equipment segment.

Full-Year FY2026 Performance Remains Strong

For the full financial year FY2026, JK Tyre reported strong growth across major financial parameters.

Key highlights include:

• Consolidated revenue increased 11 percent year-on-year to Rs 16,384 crore

• EBITDA rose 25 percent to Rs 2,089 crore

• EBITDA margin stood at 12.8 percent

• Profit Before Tax reached Rs 1,043 crore

• Profit After Tax stood at Rs 774 crore

The company described FY2026 as a record year supported by strong market conditions and improved economic activity.

Board Recommends 200 Percent Dividend

JK Tyre’s board of directors has recommended a dividend of 200 percent, which translates to Rs 4 per equity share for shareholders.

The recommendation reflects the company’s strong earnings performance and confidence in future growth.

Chairman Highlights Strong Demand and Economic Recovery

Chairman and Managing Director Raghupati Singhania said FY2026 turned out to be a record year for the company.

He stated that growth was supported by several positive factors, including:

• GST and personal tax reforms

• Lower interest rates

• Improved economic activity

• Strong festive season demand

The company also said that sales volumes in India increased 21 percent year-on-year during the fourth quarter across segments.

Growth was mainly driven by the original equipment (OE) segment, which recorded a sharp 42 percent rise during the quarter.

Exports Stable Despite Global Uncertainty

JK Tyre said its export business remained stable despite geopolitical challenges and uncertainty in global markets, including the ongoing conflict in West Asia.

The company also highlighted that its Mexico-based subsidiary, JK Tornel, contributed positively to consolidated earnings during the quarter.

Looking ahead to FY2027, JK Tyre said it will continue focusing on higher value-added products for both domestic and export markets while preparing for rising input costs and global market volatility.

Also Read: EKA Mobility Expands Dealer Network to Boost Last-Mile EV Presence in India

CMV360 Says

JK Tyre & Industries delivered a strong performance in FY2026 with sharp growth in profit, revenue and sales volumes. The company’s Rs 4,980 crore expansion plan highlights its focus on future demand and market leadership in the tyre industry. Strong domestic demand, growth in the OE segment and stable exports supported overall performance. With capacity expansion and focus on premium products, JK Tyre aims to strengthen its position further in FY2027 despite global uncertainties and rising input costs.