India's MRF posts higher quarterly profit on strong tyre demand

Hyundai Motor India

14/11/2025 06:58

Nov 14 (Reuters) - Indian tyre maker MRF MRF.NS reported a 12.3% rise in second-quarter profit on Friday, helped by demand for its tyres by original equipment manufacturers.

The company's net profit rose to 5.12 billion rupees ($58.25 million) for the quarter ended September 30, compared with 4.55 billion rupees last year.

Revenue from operations rose 7.2% to 72.5 billion rupees, while total expenses increased 6.6%.

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KEY CONTEXT

Tyre makers such as MRF, which supply to automakers such as Hyundai Motor India HYUN.NS and Bajaj Auto BAJA.NS, depend heavily on new vehicle sales for a major share of their revenue.

Car sales by dealers in the country in the reported quarter rose 1.8% year-over-year, helped by consumption tax cuts and festive demand.

Analysts said that replacement - change old or worn-out tyres with new ones - sales remained weak as dealers postponed purchases due to tax-related delays.

India announced tax cuts on hundreds of consumer items in September, ranging from soaps to small cars, to spur domestic demand.

Peers CEAT CEAT.NS and JK Tyre both reported a rise in second-quarter profits in October, helped by higher demand.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
profit growth (%)
Mean rating *
# of analysts
Stock to price target **
Div yield (%)
MRF Ltd
MRF.NS
27.45
13.15
7.46
17.28
HOLD
5
1.17
0.15
CEAT Ltd
CEAT.NS
20.23
8.96
13.44
30.62
BUY
17
0.99
0.73
JK Tyre & Industries Ltd
JKIN.NS
13.50
7.84
8.02
27.97
HOLD
5
0.95
0.66
Apollo Tyres Ltd
APLO.NS
17.49
8.30
6.99
25.33
BUY
22
1.02
0.96

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.8950 Indian rupees

MRF Q2 stock performance https://tmsnrt.rs/4p5HLbr

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Rashmi Aich)

 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))