JK Tyre Q2 net profit falls 71% on West Asia tensions and input costs

what happened

JK Tyre & Industries reported a 71.30% year-on-year drop in consolidated net profit for the second quarter, to ₹65.11 crore from ₹227 crore a year earlier, according to Moody's. The company blamed the operating environment and geopolitical tensions in West Asia. The EBITDA margin contracted sharply to 7.1% from 13.3%, while revenue from operations rose about 21% to around ₹4,841 crore.

Managing Director Anshuman Singhania said conditions remain challenging, with input costs “persistently higher.” Raw material costs rose about 9% from the first quarter and roughly 30% cumulatively over the first six months of the fiscal year. He expects another 4–5% increase in the full raw material basket in the third quarter and plans price hikes of 4–5%, passing the impact on to customers. Supply chain constraints remain, and container freight rates are well above historical levels.

Chairman Raghupati Singhania pointed to strong momentum in the Indian business after GST 2.0, with original equipment (OE) market sales up 65% and domestic sales up 32% year on year. Shares of JK Tyre closed at ₹309.20 on the BSE on Friday, down 4.30%.

why it matters

Higher raw material and freight costs squeeze margins for tire makers, and JK Tyre is trying to offset them with price increases. The report shows that the West Asia conflict is affecting manufacturers through input and shipping costs, not only through energy prices.

market impact

JK Tyre and tire makers: higher raw material and freight costs pressure margins; shares fell 4.30%

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