MRF profit falls 28% despite 18% revenue growth

Company: MRF Limited (NSE: MRF) MRF reported mixed Q2 FY27 results. Consolidated revenue from operations increased 17.6% year-on-year to ₹8,524 crore, while net profit declined 27.8% to ₹369 crore. Key Highlights Revenue from operations rose 17.6% to ₹8,524 crore, compared with ₹7,250 crore last year. Net profit declined 27.8% to ₹369 crore from ₹512 crore. EBITDA fell 16.3% to ₹913 crore. EBITDA margin contracted to 10.7% from 15% a year ago. The company declared an interim dividend of ₹3 per share. November 17, 2026, is the record date for the dividend. My View Revenue growth indicates healthy demand, but profitability tells a different story. EBITDA declining despite higher revenue points to pressure on operating costs and margins. The sharp margin contraction is the key concern this quarter. Revenue growth alone will not be enough unless MRF can improve cost efficiency and protect profitability. What I'm Watching Next Raw material and input cost trends. Ability to recover margins through pricing. Demand across replacement, OEM and export markets. Whether EBITDA margins begin to stabilise. Stance: Cautious. Revenue growth is encouraging, but the decline in EBITDA and sharp margin compression need to be monitored before taking a positive view. I do not have any holding or position in the stock mentioned above. MRF