MRF Q2 Profit Falls 26.6% as Raw Material Costs Rise

MRF MRF reported a 26.6% year-on-year fall in consolidated net profit to Rs 386.99 crore for the September quarter (Q2 FY27) on Tuesday, 10 November, from Rs 527.43 crore a year earlier. Profit before tax fell 25.5% to Rs 521.81 crore from Rs 700.45 crore. Revenue from operations rose 17.4% to Rs 8,660.19 crore from Rs 7,378.72 crore, and total income rose 17.4% to Rs 8,791.58 crore from Rs 7,489 crore. The cost of materials consumed rose 43.1% to Rs 6,552.57 crore, far faster than revenue, as a steep rise in raw material prices amid global uncertainty affected profitability. The company said demand continued in both the original equipment and replacement segments. For the first half of FY27, consolidated total income rose to Rs 17,402.14 crore from Rs 15,293.23 crore, while net profit fell to Rs 882.34 crore from Rs 1,029.25 crore. The board declared an interim dividend of Rs 3 per share, or 30% of the Rs 10 face value, with a record date of 17 November 2026 and payment on or after 1 December 2026. The company expects volatility in commodity markets to continue, with raw material and logistics costs likely to remain high. MRF shares gained on Wednesday, 11 November, after the results. Material costs rose 43.1% against revenue growth of 17.4%, so investors will watch margins in the coming quarters. Disclaimer: The views Disclaimer: The views expressed purely for educational and informational purposes and do not constitute financial advice or a recommendation to buy, sell, or hold any security