Tyre stocks in top gear: JK Tyre, Ceat, MRF surge up to 8% on healthy outlook

JK Tyre’s Q4 profit jumps 79 percent, lifting the entire sector

Tyre stocks were buzzing on May 21 after JK Tyre reported a strong March quarter performance on a sequential basis. Shares of JK Tyre & Industries, Ceat, and MRF surged up to 8 percent in intraday trade, even as the benchmark Nifty 50 index gained around 1 percent.

Over the past month, shares of JK Tyre, MRF, Ceat have surged up to 30 percent, outperforming benchmark Nifty 50's 3 percent rise.

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JK Tyre’s profit-after-tax (PAT) rose 79 percent quarter-on-quarter (QoQ) to Rs 102 crore, up from Rs 57 crore in the third quarter of FY25. Its earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 15 percent QoQ to Rs 385 crore from Rs 335 crore. The Ebitda margin improved to 10.2 percent for the quarter, compared to 9.1 percent in Q3.

Ceat also shared a positive outlook for FY26, expecting continued double-digit growth, primarily driven by demand in the premium tyre segment. In Q4, the company reported a 14.3 percent year-on-year rise in revenue to Rs 3,420.6 crore, up from Rs 2,991.9 crore a year ago. However, its net profit declined 8.4 percent to Rs 99.5 crore from Rs 108.6 crore in Q4FY24.

MRF, too, posted solid numbers, with consolidated net profit rising 33 percent year-on-year to Rs 492 crore in Q4FY25, up from Rs 370 crore. Its consolidated revenue from operations rose 11.4 percent to Rs 7,074.8 crore.

A positive for the tyre sector in the March quarter was stable raw material prices compared to the third quarter, although the benefit was partially offset by the rupee’s depreciation against the dollar. Tyre companies implemented price hikes during the year, which helped absorb some of the increased input costs.

“While in Q1, the raw material basket may see a minor dip, from Q2 we expect a bigger drop that should support margin expansion,” Ceat said.

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