JK Tyre shares zoom 7% in early deals: Two factors fueling the rally
JK Tyre stock gained 7.07% to Rs 422 against the previous close of Rs 394.10. Market cap of the firm stood at Rs 11,992 crore.
- May 27, 2026,
- Updated May 27, 2026 11:06 AM IST
Shares of JK Tyre and Industries Ltd rose over 7% after the tyre maker announced its Q4 earnings. JK Tyre stock gained 7.07% to Rs 422 against the previous close of Rs 394.10. Market cap of the firm stood at Rs 11,992 crore. The tyre maker's earnings were led by strong growth in its India business and margin expansion across operations. JK Tyre also announced plan to expand capacity through phased investments worth Rs 4,980 crore, which led to positive sentiment around the stock.
Net profit rose 80% to Rs 177.96 crore in Q4 against the Rs 98.66 crore profit a year ago.
The tyre company reported a 12% year-on-year rise in Q4 revenue to Rs 4,223 crore against Rs 3,759 crore in the corresponding quarter last year. EBITDA rose 48% in Q4, while operating margins rose 300 basis points.
Gross margins climbed 230 basis points, led by better operating efficiencies and a favourable business mix. The company’s India business was the key growth driver in the last quarter. Revenue from the domestic business rose 15% year-on-year, while margins in the segment expanded by 300 basis points.
The board of the firm also recommended a dividend of Rs 4.00 per equity share i.e. 200% for the financial year ended March 31, 2026
The company operates its business through three operating segments, representing its business on the basis of geoqraphies which are India, Mexico and others.
Raghupati Singhania, Chairman & Managing Director (CMD), said: "FY26 has been a landmark year for JK Tyre. We delivered record volumes across segments, attaining the highest ever annual consolidated revenue of Rs 16,384 crore and achieving an EBITDA of Rs 2,089 crore, an increase of 25% over the previous year."
"We registered a healthy double-digit growth of 1 1% in revenues, on year-on-year basis, driven by buoyant demand supported by GST and personal tax reforms, softening of interest rates, improved economic activity, and the festive season. Our performance reflects the strength of our brands, operational discipline and an unwavering focus on value-accretive growth," said Singhania.
Shares of JK Tyre and Industries Ltd rose over 7% after the tyre maker announced its Q4 earnings. JK Tyre stock gained 7.07% to Rs 422 against the previous close of Rs 394.10. Market cap of the firm stood at Rs 11,992 crore. The tyre maker's earnings were led by strong growth in its India business and margin expansion across operations. JK Tyre also announced plan to expand capacity through phased investments worth Rs 4,980 crore, which led to positive sentiment around the stock.
Net profit rose 80% to Rs 177.96 crore in Q4 against the Rs 98.66 crore profit a year ago.
The tyre company reported a 12% year-on-year rise in Q4 revenue to Rs 4,223 crore against Rs 3,759 crore in the corresponding quarter last year. EBITDA rose 48% in Q4, while operating margins rose 300 basis points.
Gross margins climbed 230 basis points, led by better operating efficiencies and a favourable business mix. The company’s India business was the key growth driver in the last quarter. Revenue from the domestic business rose 15% year-on-year, while margins in the segment expanded by 300 basis points.
The board of the firm also recommended a dividend of Rs 4.00 per equity share i.e. 200% for the financial year ended March 31, 2026
The company operates its business through three operating segments, representing its business on the basis of geoqraphies which are India, Mexico and others.
Raghupati Singhania, Chairman & Managing Director (CMD), said: "FY26 has been a landmark year for JK Tyre. We delivered record volumes across segments, attaining the highest ever annual consolidated revenue of Rs 16,384 crore and achieving an EBITDA of Rs 2,089 crore, an increase of 25% over the previous year."
"We registered a healthy double-digit growth of 1 1% in revenues, on year-on-year basis, driven by buoyant demand supported by GST and personal tax reforms, softening of interest rates, improved economic activity, and the festive season. Our performance reflects the strength of our brands, operational discipline and an unwavering focus on value-accretive growth," said Singhania.