MRF Reports 28% Drop in Q2 Profit Despite Revenue Growth
MRF Limiteds Q2 profit fell by 28% to ₹369 crore, while revenue rose to ₹8,524 crore, driven by increased sales.
Mumbai, November 10 (Daily Kiran) : MRF Limited, one of India’s leading tire manufacturers, announced its financial results for the second quarter of fiscal year 2027 on November 10. The company reported a significant drop in profit, which fell 27.8% year-on-year to ₹369 crore, down from ₹512 crore during the same period last year.
In its exchange filing, MRF revealed that its revenue for the quarter rose by 17.6% to ₹8,524 crore, compared to ₹7,250 crore in the corresponding quarter of the previous year. Despite this revenue increase, the company’s EBITDA decreased by 16.3%, falling from ₹1,090 crore to ₹913 crore.
The decline in profitability was attributed to a sharp rise in input costs, which significantly impacted the operating margins. The EBITDA margin dropped to 10.7%, down from 15% in the same quarter of the previous fiscal year.
Total expenses surged by 21.8% to ₹8,269.77 crore, compared to ₹6,788.55 crore in the previous year’s quarter. A key factor driving this increase was the soaring cost of raw materials, which rose by approximately 43% to ₹6,552.57 crore from ₹4,577.49 crore a year ago.
This substantial rise in input costs adversely affected the operating margin and overall profitability. As a result, profit before tax (PBT) declined to ₹521.81 crore from ₹700.45 crore in the same quarter last year. Earnings per share (EPS) also fell to ₹912.46, down from ₹1,243.60.
In light of these results, MRF’s board approved an interim dividend of ₹3 per share for the fiscal year 2027. The company has set November 17 as the record date to identify shareholders eligible for the dividend.
