MRF shares drop 2% as Q1 profit and margins weaken

$MRF d shares fell about 2% on Tuesday after the tyre major reported a decline in first-quarter profit and operating earnings, even as revenue continued to grow. Consolidated net profit for the June quarter of FY27 slipped 6.52% year-on-year to Rs 479.25 crore, from Rs 512.67 crore a year earlier. Revenue rose 9.64% to Rs 8,415.50 crore, reflecting solid top-line momentum. However, operating performance came under pressure. EBITDA declined 7.46% to Rs 990.63 crore, while the EBITDA margin contracted sharply by 218 basis points to 11.77% from 13.95% in the year-ago period. The margin squeeze was attributed to higher raw-material costs. The stock traded around Rs 1,31,150 in afternoon deals, making it one of the notable losers on the Nifty Midcap 100. The results reverse the stronger margin performance seen in the previous quarter.