- MRF posted a 30 per cent rise in FY26 net profit driven by OEM and replacement demand growth.
- The company expanded EV tyre supplies and crossed the Rs 30,000-crore sales milestone in FY26.
MRF reported strong financial growth for FY26 as rising demand from replacement and OEM channels supported higher sales volumes across multiple vehicle categories. The company posted consolidated total income of Rs 31,654 crore for the financial year ended March 31, 2026, reflecting an 11 per cent year-on-year increase. Consolidated net profit rose 30 per cent to Rs 2,426 crore, supported by improved market demand, new product introductions and increasing supplies to electric vehicle manufacturers. The company also achieved a significant milestone by crossing Rs 30,000 crore in sales during the financial year.
MRF FY26 Financial Performance Overview
The tyre manufacturer recorded improved profitability during FY26, with profit before tax increasing to Rs 3,222 crore compared to Rs 2,483 crore in the previous financial year. Tax expenses also rose to Rs 796 crore from Rs 610 crore in FY25 due to higher earnings during the period. According to the company, strong momentum in replacement demand and original equipment supplies contributed significantly to revenue growth. Demand remained stable across passenger vehicle, truck and two-wheeler tyre segments, while higher production levels by vehicle manufacturers further supported sales volumes during the fourth quarter.
MRF FY26 Key Financial Highlights
| Financial Metric | FY26 | FY25 |
|---|---|---|
| Consolidated Total Income | Rs 31,654 crore | Rs 28,500 crore approx. |
| Net Profit | Rs 2,426 crore | Rs 1,866 crore approx. |
| Profit Before Tax | Rs 3,222 crore | Rs 2,483 crore |
| Tax Expense | Rs 796 crore | Rs 610 crore |
Demand Growth Across OEM and Replacement Segments
The company stated that improved demand trends continued throughout the fourth quarter, supported by GST rate reductions that benefited both replacement and original equipment tyre sales. Increased vehicle production by manufacturers also contributed to higher tyre demand during the period. India continued to witness stable demand across commercial vehicle, passenger vehicle and two-wheeler categories, helping the company expand market reach in both domestic and export-oriented businesses.
MRF highlighted that its latest product launches across truck, passenger vehicle and two-wheeler tyre segments contributed positively to growth during FY26. The company also increased supplies to electric vehicle manufacturers, reflecting expanding opportunities in the EV ecosystem. According to the company, MRF tyres are now being fitted on vehicles exported by OEMs to several international markets, strengthening its global supply footprint and improving export-linked business opportunities.
Capacity Expansion and Cost Pressure Concerns
The company said it is continuing capacity expansion across multiple manufacturing plants to address future demand from domestic replacement markets, OEM customers and exports. However, MRF also flagged concerns related to rising raw material prices and supply chain disruptions associated with the ongoing conflict in the Middle East. The company stated that input cost pressures are expected to continue in the near term, prompting price hikes and cost-control measures to protect operating margins.
MRF further noted that forecasts of a sub-normal monsoon could potentially impact demand conditions in the coming months. The company said it is closely evaluating the possible impact of uncertain economic conditions, rising input costs and margin pressures on future business performance. Despite these concerns, the company remains focused on maintaining growth momentum through capacity additions, product expansion and stronger OEM partnerships.
Dividend Announcement for FY26
The board declared a total dividend of Rs 235 per share with a face value of Rs 10 each for FY26. This includes two interim dividends of Rs 3 per share that had already been paid earlier during the financial year. The dividend announcement reflects the company’s improved profitability and continued confidence in long-term business growth despite prevailing industry challenges and raw material cost pressures.
Frequently Asked Questions
How much did MRF’s net profit increase in FY26?
MRF reported a 30 per cent increase in consolidated net profit for FY26 compared to the previous financial year. The company posted a net profit of Rs 2,426 crore, supported by higher demand from replacement and OEM tyre segments, improved vehicle production and increasing supplies to electric vehicle manufacturers. Strong demand across passenger vehicles, trucks and two-wheelers also contributed to the company crossing the Rs 30,000-crore sales milestone during the financial year.
What challenges did MRF highlight for future growth?
MRF highlighted concerns related to rising raw material costs and supply chain disruptions linked to the ongoing conflict in the Middle East. The company stated that input cost pressures are expected to continue despite implementing price hikes and cost-management initiatives. It also warned that forecasts of a sub-normal monsoon and uncertain economic conditions could impact future demand and profitability, leading the company to closely monitor margin pressures and market conditions.
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