Goodyear reports 31% profit, but margins under pressure

Goodyear India Limited !GOODYEAR reported Q2 FY27 net profit of ₹17.2 crore, up 31.3% from ₹13.1 crore in the corresponding quarter last year. Revenue from operations increased to ₹760.86 crore. However, EBITDA grew at a slower pace of 21.6% to ₹32.7 crore, and the EBITDA margin declined to 4.3% from 4.5%. Why this matters: The company delivered higher revenue and profit, but operating profitability did not improve at the same pace. Rising material and operating expenses remain important factors to monitor in the tyre industry. The first-half picture also deserves attention. H1 FY27 net profit declined approximately 13% to ₹23.71 crore despite higher revenue. What to watch next: Investors should track natural rubber and other raw material prices, replacement tyre demand, original equipment manufacturer sales and operating margins. The ability to pass on cost increases through pricing will be important. My view: The quarterly profit growth is positive, but the margin trend and weaker first-half profit indicate that cost pressures have not disappeared. Consistent margin improvement would provide stronger evidence of an earnings recovery. Learning outcome: A company can report higher sales and net profit while still facing operating pressure. Investors should compare EBITDA growth with revenue growth and examine half-year performance before concluding that profitability is improving.