JK Tyre & Indust Q1 FY27 Results (NSE: JKTYRE)
Signal: Revenue declined
The read
The operating inflection is negative after two quarters of margin expansion: consolidated EBITDA margin fell to 6.8% from 7.6% YoY and 10.9% sequentially as raw-material inflation overwhelmed reported domestic volume growth, while Mexico moved to a ₹45.83 crore segment loss and consolidated PAT fell 75.3% to ₹44.04 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,946.24 Cr | -6.6% | +2.0% |
| EBIT | ₹141.99 Cr | -56.1% | |
| Net profit | ₹44.04 Cr | -75.3% | |
| EPS | ₹1.55 | -75.2% | |
| EBIT margin | 6.8% |
P&L walk
Consolidated revenue of ₹3946.24 crore declined 6.6% YoY, gross margin compressed by about 806bps as material costs rose, EBITDA fell 17.2% to ₹267.64 crore, and PAT attributable to owners fell 75.3% to ₹44.04 crore after Mexico disruption and exceptional-item volatility.
Segments
India generated ₹187.61 crore of segment result on ₹3924.46 crore revenue, while Mexico dragged the group with a ₹45.83 crore loss on ₹89.28 crore revenue due to geopolitical input constraints and labour-related productivity negotiations.
Key positives
- Domestic volumes grew 25% YoY, with replacement volumes up 12% and OE volumes up 42%, indicating volume momentum even though consolidated revenue declined 6.6% YoY to ₹3946.24 crore.
- Standalone finance cost declined to ₹91.44 crore sequentially from ₹104.51 crore, while consolidated finance cost declined 1.5% YoY to ₹99.08 crore.
- Consolidated segment assets increased 4.3% YoY to ₹16687.87 crore and depreciation increased 2.4% to ₹125.65 crore, a clean depreciation-to-asset-base cross-check.
Key concerns
- Consolidated gross margin compressed approximately 806bps YoY to 29.9% as raw-material cost rose to 76.9% of revenue from 60.2%; management explicitly linked the pressure to higher petro-based input prices following the West Asia crisis.
- Consolidated EBITDA declined 17.2% YoY to ₹267.64 crore and EBITDA margin fell 86bps to 6.8%, despite 25% domestic volume growth, showing that pricing/mix did not offset input inflation at the group level.
- Mexico reported a ₹45.83 crore segment loss versus ₹0.47 crore profit in the comparable period, with the filing citing geopolitical disruption and constrained key-input availability.
- Consolidated PAT attributable to owners declined 75.3% YoY to ₹44.04 crore, materially underperforming the 6.6% revenue decline.
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