MRF Q2 PAT drops 27% YoY to ₹386.99 Crore

MRF Limited (MRF) reported consolidated Q2FY27 net profit of ₹386.99 Cr, down 26.63% YoY and 21.88% QoQ. Revenue from operations rose 17.37% YoY and 2.91% QoQ to ₹8,660.19 Cr. EBITDA stood at ₹957.53 Cr, down 14.93% YoY and 3.34% QoQ. EBITDA margin contracted to 11.06% from 15.25% YoY and 11.77% in the previous quarter. Profitability was impacted by a sharp rise in raw material costs, particularly rubber and crude-linked inputs, due to global uncertainties. The board declared an interim dividend of ₹3 per share (30% of face value). The key triggers are the 26.63% YoY decline in PAT to ₹386.99 Cr and the sharp contraction in EBITDA margin to 11.06%, despite strong 17% revenue growth. This reflects margin pressure from elevated commodity costs in the tyre major. Peers such as Apollo Tyres, CEAT and JK Tyre may face comparison on raw material cost impact and pricing actions. Near-term prices could react negatively to the profit decline and margin compression. Risks include sustained rubber and crude price volatility, weaker demand in certain segments, or delays in cost pass-through. Competitors listed: Apollo Tyres, CEAT, JK Tyre. We have no financial interest in this news.