High raw material cost drags JK Tyre's profit by 43% in Q4 FY25

Tyre manufacturer JK Tyre & Industries Ltd reported a 42.6% year-on-year decline in its consolidated net profit to Rs 97.04 crore, compared to Rs 169.3 crore in the same period last year, according to an exchange filing by the company.

Despite this, its revenue from operations saw a modest increase of 1.63%, rising to Rs 3,758.6 crore from Rs 3,698.5 crore in the corresponding quarter. The drop in net profit was primarily attributed to higher raw material costs, especially the rising prices of natural rubber.

“Despite a challenging and uncertain global economic landscape, JK Tyre recorded a healthy uptick in both the replacement and OEM segments compared to the same quarter last year,” said Raghupati Singhania, Chairman and Managing Director (CMD).

Notably, JK Tyre has earmarked a capital expenditure of Rs 1,400 crore over the next two years for capacity expansion and exports, Managing Director Anshuman Singhania said.

“We are currently executing our capex plan, which involves an outlay of Rs 1,400 crore. In FY26, we also have a maintenance capex of Rs 250-300 crore,” Singhania said during a post-earnings media briefing.

According to Singhania, the company has already received board approval for the capex. “It is for the truck-bus radial tyre product line, with production set to begin in November 2025. For all-steel light truck radial tyres, production will start in July, and for passenger car radial tyres, production will commence in September,” he noted.

The company stated that the substantial increase in capacity across all segments is expected to take place over the next six months to one year.