Indian tyre maker MRF posts lower quarterly profit on elevated material costs

JK Tyre & Industries

11/08/2026 08:33

Aug 11 (Reuters) - Indian tyre maker MRF MRF.NS posted a 2% fall in first-quarter profit on Tuesday, as conflict in the Middle East drove up crude oil prices and increased the cost of key raw materials such as synthetic rubber and carbon black. 

Here are some details:
  
Profit from continuing operations fell to 4.74 billion rupees ($49.68 million) in the quarter ended June 30 from 4.84 billion rupees a year earlier.
Revenue from operations rose 9.7% to 82.92 billion rupees, while total expenses grew 11.7%, driven largely by a 26.7% increase in material costs, which account for about a third of overall expenses.
Shares of the company, which have declined 14.5% in 2026, were down 2.3% after results. 
Tyre manufacturers are vulnerable to rising crude prices as several key inputs, including synthetic rubber and carbon black, are tied to oil-derived feedstocks, adding pressure to margins and earnings.
MRF and peers CEAT CEAT.NS, Apollo Tyres APLO.NS and JK Tyre JKIN.NS have raised prices across product segments as the industry tries to pass on elevated raw material costs and protect margins.
Analysts said further price hikes will be critical for MRF as increases made so far may not fully offset higher crude and rubber costs, which are expected to keep margins under pressure.
CEAT reported a fall in its first-quarter profit last month and said it expected raw material costs to remain inflated in the second quarter.

($1 = 95.4200 Indian rupees)

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
 ((Abhinav.Parmar@thomsonreuters.com;))