Archive · 14 Nov 2025
MRF Reports 12% Profit Rise in Q2 FY26 Amidst Revenue Growth
MRF, a company that makes tires, announced its financial results for the July to September 2025 period.
They made more profit than they did last year, with their net profit increasing by 12%.
Their total sales also went up by 7%.
This good performance was helped by lower prices for the materials they use to make tires.
Sales for new vehicles and exports were strong, even though sometimes it's harder to sell outside the country.
Sales for replacement tires were a bit affected by a recent change in a tax called GST, but MRF believes this will help them in the future.
Even though the company made more money, their stock price went down a little on the day the news was released.
The company's board also decided to give a small dividend payment to shareholders.
MRF reported a 12% increase in consolidated net profit to ₹526 crore in Q2 FY26, compared to ₹471 crore in the same quarter last year.
Revenue grew by 7% year-on-year to ₹7,379 crore in Q2 FY26.
Profit growth was driven by softening raw material prices and strong performance in Original Equipment (OE) sales and exports.
The company declared an interim dividend of ₹3 per share for the financial year ending March 31, 2026.
Despite positive financial results, MRF's share price closed down by ₹865 on November 14, 2025.
- Who
- MRF Ltd
- What
- Reported a 12% increase in consolidated net profit for Q2 FY26, with revenue up 7%. Declared an interim dividend but saw a slight decrease in share price.
- When
- Quarter ended September 30, 2025; Published on November 14, 2025
- Where
- India
- Why
- Profit growth attributed to softening raw material prices and strong sales in Original Equipment (OE) and exports. Share price decrease occurred despite positive financial results.
Company Performance
Market Reaction
Profit vs. Share Price
Company Performance
MRF reported a 12% increase in consolidated net profit to ₹526 crore and a 7% increase in revenue to ₹7,379 crore for Q2 FY26. This growth was attributed to softening raw material prices and strong OE sales and exports.
Market Reaction
Despite the positive financial results, MRF's share price on the NSE closed down by ₹865 on November 14, 2025, to ₹1,57,450.
Impact of GST Reduction
Company Performance
The company noted a temporary impact on replacement sales due to the announcement of GST reduction in the latter half of the quarter. However, they anticipate the revised GST rate will benefit upcoming quarters.
Market Reaction
The market may have reacted to the short-term disruption caused by the GST announcement on replacement sales, despite the company's positive outlook for future quarters.
- Company
- MRF Ltd
- Quarter
- Q2 FY26 (July-September 2025)
- Consolidated Net Profit (YoY)
- +12%
- Revenue (YoY)
- +7%
- Raw Material Prices
- Softening
- Interim Dividend
- ₹3 per share (30%)
- Share Price (NSE Close)
- ₹1,57,450
- Share Price Change (Day)
- -₹865
Sources
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