01 — At a Glance
The Tyre King Who’s Fighting Raw Material Monsters
- 52-Week High / Low₹1,63,600 / ₹1,02,012
- Q3 FY26 Revenue₹8,050 Cr
- Q3 FY26 PAT₹692 Cr
- Q3 EPS (₹)₹1,631.25
- FY25 Full Year EPS₹5,258
- Book Value₹45,840
- Price to Book3.03x
- Dividend Yield0.17%
- Debt / Equity0.19x
- 3M Return-9.59%
The Tea: MRF delivered ₹8,050 crore revenue in Q3 FY26, highest in the dataset, but PAT jumped 137% YoY because Q3 FY25 was a disaster. Current quarter margin compression is real. Raw material costs are eating lunch money. The stock is expensive at 25.7x P/E (sector median 13x), yet here’s the kicker — AAA credit rating from CARE, record revenue, and 30% domestic market share. Something doesn’t add up in the valuation story.
02 — Introduction
Welcome to the Tyre Aisle of Suffering
Madras Rubber Factory — MRF — has been in this business since 1960. The company is not trying to pivot into fintech. There is no AI play. It makes rubber. Circular rubber. For wheels. And it dominates the Indian tyre industry like no other company dominates any consumer durable category in India. Period.
Market share: 30%. Revenue: ₹30,180 crore (TTM). Installed capacity: 95.85 million tyres annually. Distribution network: 5,000+ dealers. The company makes tyres for Maruti, Hyundai, Mahindra, Ashok Leyland, Tata Motors, and basically anyone with four wheels and the good sense to use MRF.
But here’s the plot: Q3 FY26 posted the highest quarterly revenue in the entire dataset history (back to Dec 2022). Yet margins are compressing like a tyre under a truck. Why? Global rubber prices. International crude prices. Supply shocks in Southeast Asia. Things that have nothing to do with MRF’s execution but everything to do with MRF’s bottom line.
The stock is down 9.6% in three months and up only 29.5% in one year. Fair? Unfair? That’s the conversation. Let’s untangle this mess with data, context, and just enough sarcasm to make you feel less lonely in the equity markets.
Note from Ratings: CARE Ratings reaffirmed AAA-Stable rating in September 2025 on MRF’s debt facilities. Translation: the company’s balance sheet is fortress-like. The business risk is market leadership. The financial risk is comfortable. The issue is cyclicality and commodity exposure — not credit quality.
03 — Business Model: Rubber Meets Reality
How MRF Prints Money — When Commodities Cooperate
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