MRF Q2 profit falls 28% to ₹369 crore (Standalone)

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 MRF Limited ( MRF ) reported a 27.8% year-on-year decline in standalone net profit to ₹369 crore in Q2 FY27. Revenue from operations increased 17.6% to ₹8,524 crore. What happened? The company's operating performance came under pressure despite higher revenue. EBITDA declined 16.3% to ₹913 crore from ₹1,090 crore. EBITDA margin contracted to 10.7% from 15% a year ago. Raw material consumption increased nearly 44% to ₹6,553 crore. Total expenses rose 21.8% to ₹8,270 crore. The board also declared an interim dividend of ₹3 per equity share. The record date is November 17, 2026, and payment will be made on or after December 1, 2026. Why does it matter? The results highlight the impact of input-cost inflation on tyre manufacturers. Revenue growth remained healthy, supported by resilient demand, but higher natural rubber and other material costs significantly affected operating margins. My view The key concern is the gap between revenue and profit growth. A 17.6% rise in revenue alongside a 27.8% fall in profit shows how quickly raw material inflation can affect profitability. The ability to pass on higher costs through pricing and improve margins will be important in the coming quarters. What I am watching next I would track raw material prices, pricing actions, demand from automobile manufacturers and EBITDA margin recovery. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in MRF Limited.