MRF Reports 27% Decline in Q2 Net Profit at ₹387 Crore Amid Rising Input Costs

Chennai-based tyre manufacturer MRF Ltd reported a 27 percent decline in consolidated net profit to ₹387 crore for the second quarter ended September 30, 2026, despite a 17 percent growth in revenue. The company cited steep increases in raw material prices due to global uncertainties as the primary reason for the drop in profitability.

Chennai-based tyre manufacturer MRF Ltd has reported its financial results for the second quarter ended September 30, 2026, registering a consolidated net profit of ₹387 crore. This represents a 27 percent decline compared to the ₹527 crore reported during the corresponding quarter of the previous fiscal year.

Despite the contraction in bottom-line profitability, the company recorded a 17 percent increase in revenue from operations. Total revenue for the quarter stood at ₹8,660 crore, compared to ₹7,379 crore in the same period last year.

According to a statement issued by the company, profitability during the quarter was adversely affected by a steep increase in raw material prices driven by global uncertainties. To mitigate these cost pressures, MRF implemented price adjustments and various cost-saving measures.

The company noted that it was able to capitalise on sustained demand for its products across both the original equipment and replacement market segments during the quarter.

For the first half of the financial year (H1FY27), MRF reported a lower net profit of ₹882 crore, down from ₹1,029 crore recorded in the corresponding period of the previous year.

Looking ahead, MRF anticipates continued disruptions and volatility in commodity markets. The company stated that raw material and logistics costs are expected to remain elevated, and it intends to take measured steps to address these ongoing operational challenges.

Alongside the financial results, the Board of Directors has declared an interim dividend of ₹3, equivalent to 30 percent, per equity share of ₹10 each for the current fiscal year.

"The financial results of MRF highlight a common economic challenge where top-line revenue growth is offset by margin pressures stemming from global commodity volatility and rising logistics costs. For businesses operating in traditional manufacturing sectors, maintaining profitability requires a careful balance between targeted price adjustments and internal cost efficiencies. As raw material and supply chain uncertainties persist, companies must closely monitor their operational overhead to protect their bottom line during cyclical downturns." — Dr. Shishir Gupta, Founder & CEO, StartupLanes