MRF Q2 Profit Drops 28% as Raw Material Costs Surge

MRF Ltd reported a sharp decline in net profit for the July-September quarter of FY27, even as revenue grew strongly on resilient tyre ***** company’s standalone net profit fell 28% year-on-year to Rs 369 crore, compared with Rs 512 crore in the year-ago period. Revenue from operations rose nearly 18% to Rs 8,524 crore from Rs 7,250 ***** drop in profitability was driven by a steep rise in input costs. Cost of materials consumed jumped around 43-44%, reflecting elevated prices of natural rubber amid supply constraints and adverse weather in key producing regions. Total expenses rose more than 22%, outpacing revenue growth and compressing margins. Demand remained steady, supported by healthy dispatches from automakers. Despite the cost pressure, the board declared an interim dividend of Rs 3 per share (30% on face value of Rs 10). The record date has been fixed as November 17, 2026, with payment scheduled on or after December 1.