Goodyear India Ltd Q1FY26 – Tyres Flat, Profits Deflated, Dividend Still Rolling
1. At a Glance
Goodyear India, the farm tyre ka baap and passenger car tyre ka “imported cousin,” closed Q1FY26 at ₹980 (Market cap ~₹2,261 Cr). The stock is down ~16% in a year, but still rocking a premium P/E of 51.2 (because apparently investors like paying Ferrari valuations for tractor tyres). With sales of ₹656 Cr this quarter (-5% YoY) and PAT of ₹14 Cr (-44% YoY), margins have deflated faster than a cheap tube. Dividend yield at 2.4% is the only thing keeping investors from puncturing their portfolios. Promoters hold a solid 74%—basically a parent company control play.
2. Introduction
In India, tractors run elections, and Goodyear runs tractors. A century-old brand with two plants (Ballabgarh, Haryana & Aurangabad, Maharashtra), Goodyear is a leader in farm tyres—selling to Mahindra, Escorts, and Tata. It also dabbles in passenger tyres (Assurance ComfortTred, EfficientGrip SUV) to look fancy in ads, but 95% revenue is still from plain old tyres.
While competitors like MRF and Apollo chase premium sports cars, Goodyear India happily makes money from diesel tractors in Punjab. But FY25–26 is bumpy: OPM dropped to 3.9%, profits fell 45% YoY, and oh yes—4,571 tyres worth ₹39 Cr got stolen from Ballabgarh. When your tyres are literally rolling away, maybe security deserves more budget than marketing.
3. Business Model – WTF Do They Even Do?
Think of Goodyear India as a “tyre sandwich” maker:
Farm Tyres (core bread): 95% of revenue. Supplied to every tractor maker—Mahindra, Escorts, TAFE, etc. If you see a tractor ploughing a field, chances are Goodyear made the tyre.
Passenger & SUV Tyres (the lettuce nobody eats): Recently launched premium tyres like Assurance ComfortTred. Competes in the luxury niche but small share.
