Business Economy


Amid rise in raw material csts due to West Asia crisis, MRF records Rs 31,654 cr total income in FY 2025-26 fiscal

Chennai, May 7 (UNI) Despite uncontrolled increase in raw materials in view of the ongoing crisis in the Middle East, Tyre major MRF on Thursday announced that it has recorded a consolidated total income is Rs 31,654 crores for the year ended 31st March 2026, as compared to Rs.28,570 Crores in the previous year recording a growth of around 11% over previous year.
The consolidated Profit before tax stood at Rs 3,222 crores for the year as against Rs. 2,483 crores for the previous financial year. Tax expense for the year is Rs 796 crores (previous year Rs. 610 crores).
After making provision for tax expense, the consolidated Net Profit for the year ended 31st March 2026 increased by 30% to Rs 2,426 crores as against Rs 1,873 crores for the previous financial year, a company statement said.
The company delivered a healthy operating performance in FY 2025-26 and crossed the milestone of Rs 30,000 crores in sales during the year, with good growth in both Replacement and OE segments.
The company’s performance was aided by the launch of new SKUs in various categories like Truck, Passenger, Two-Wheelers etc. Besides being one of the largest OE suppliers of Tyres to ICE vehicles, MRF has become the most preferred supplier of Tyres to Electric Vehicles. MRF tyres are increasingly being fitted on vehicles exported by OEMs to many countries across the globe.
Demand buoyancy arising from reduction in GST rates continued into the 4th Quarter of the year, which is reflected in both Replacement and OE Sales. OEMs also witnessed a high Demand in the Quarter which led to an increased demand for tyres.
In order to cater to future demand for tyres across segments in the Replacement market, OEMs and Export, we are also expanding capacity across Plants.
The ongoing conflict in the Middle East and resulting disruptions have led to uncontrolled increase in raw material costs and supply chain issues. This has severely impacted the cost of input materials which is expected to continue.
The company has taken price increases and cost management measures to mitigate the impact of higher raw material costs and will take further hikes. Further, the forecast of a sub normal monsoon may adversely impact demand. In view of the unpredictable economic conditions and cost pressures on margins, it is difficult to anticipate the expected impact on growth and the Company is in the process of evaluating the same.
The dividend for the financial year 2025-26 is Rs 235/- (2350%) per share of Rs.10 each which includes two interim dividends of Rs.3/- each (30%) per share already paid.
UNI GV 1827
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