Goodyear India Ltd Q2FY26: The Tyre That Slipped but Still Rolls – ₹596 Cr Sales, ₹13 Cr PAT, OPM 4% and a Boardroom Musical Chairs
1. At a Glance
If tyres could talk, Goodyear India’s Q2FY26 results would probably sigh and say, “Bro, I’m inflated, but the road’s rough.” The company reported revenue of ₹596 crore, a PAT of ₹13.1 crore, and an operating profit margin of 4%, a far cry from the cushy 9% it once enjoyed. Despite a drop in both sales (-12.6% QoQ) and profits (-17% QoQ), the company continues to maintain a squeaky-clean balance sheet with debt of just ₹28 crore, making it one of India’s least leveraged tyre manufacturers.
At ₹981 per share, the stock trades at a sky-high P/E of 54.5, clearly pricing in not earnings but optimism—or perhaps nostalgia for better quarters. The market cap sits at ₹2,264 crore, ROE at 9.3%, and ROCE at 13%, which is decent but not donut-worthy. Meanwhile, the dividend yield of 2.44% acts like a soft cushion for investors—something to hold on to while the numbers wobble.
But don’t be fooled by the calm rubber surface. Behind the scenes, Goodyear India is undergoing management reshuffles, theft investigations, and even parental introspection from its foreign promoter. Tyres may rotate, but this company’s headlines have been doing the same lately.
2. Introduction
When most people hear “Goodyear,” they think of smooth rides and iconic tyre ads with eagles soaring across blue skies. But Goodyear India’s FY25–FY26 story feels more like a bumpy ride through a Gurgaon pothole. The company’s profits have been skidding faster than a scooter on wet tarmac. Once boasting double-digit margins, it’s now braking hard at just 4% OPM.
Still, let’s give credit where due. Goodyear has a legacy stretching back to pre-liberalization India, supplying tyres to giants like Mahindra, Escorts, and Tata Motors. It remains the undisputed king of the farm tyre market, literally the rubber beneath the tractors ploughing India’s fields. But the company’s real challenge now? Making city slickers care about its “Assurance ComfortTred” and “EfficientGrip Performance SUV” tyres while its factories battle operational snags and theft incidents worth ₹39 million.
The past year has been a soap opera: resignations, new directors, farm business reviews, and enough regulatory announcements to fill a small BSE bulletin. Yet, Goodyear’s staying power—both literally and financially—comes from two sturdy assets: a debt-light balance sheet and a 74% promoter holding by its global parent, Goodyear Orient Company (Private) Limited.
So buckle up—this isn’t a company that’s burst its tyre, just one taking a longer pit stop.
3. Business Model – WTF Do They Even Do?
Goodyear India does exactly what your car dreams of—makes tyres. But not just any tyres. It runs two core engines:
Farm Tyres (its bread, butter, and tractor tread): Goodyear dominates the farm tyre segment, supplying to nearly every major tractor OEM—Mahindra, Escorts, and Tata Motors. If you’ve seen a tractor in Punjab or a sugarcane field in Maharashtra, there’s a solid chance it’s wearing Goodyear rubber.
Passenger and Commercial Tyres: Here’s where Goodyear tries to jazz things up with its premium line—Assurance ComfortTred for luxury cars and EfficientGrip Performance SUV tyres for city kings. Fancy names, sure. But sales in this category are still modest compared to the roaring farm division.
Tubes and Flaps: Just 5% of total revenue—but hey, they’re like chutney to the tyre’s main course. Not essential, but somehow comforting.
With two plants—one at Ballabgarh (Haryana) and another at Aurangabad (Maharashtra)—the company manufactures locally but sells 100% domestically. That’s right, no export drama, no forex risk, just good old Indian dust and diesel.
Its secret sauce? Brand legacy and OEM tie-ups. But in an era where CEAT and Apollo are rolling out performance lines like pizzas, Goodyear’s “premium tyre” story might need more horsepower.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
Same Qtr Last Year (Sep’24)
Previous Qtr (Jun’25)
YoY %
QoQ %
Revenue
596
682
656
-12.6%
-9.1%
EBITDA
27
31
28
-12.9%
-3.6%
PAT
13
16
14
-17.0%
-7.1%
EPS (₹)
5.67
6.82
6.12
-16.9%
-7.3%
Commentary: The numbers are as flat as an overused tyre. Revenue dipped both YoY and QoQ, while margins remain stuck in the 4% gear. PAT has shrunk from ₹16 crore to ₹13 crore, with EPS following suit at ₹5.67. Annualised EPS works out to about ₹22.7—making that P/E of 54.5x look like a luxury markup even Louis Vuitton would envy.
5. Valuation Discussion – Fair Value Range
Let’s calculate this educationally (don’t sue us, SEBI).
