Modi Rubber Ltd Q2 FY26 Results | 20% Revenue Jump, ₹4.56 Cr PAT & A 53-Year-Old Tyre Legend Still Spinning More Drama Than Wheels
1. At a Glance
Once the king of Indian tyre manufacturing, Modi Rubber Ltd (MRL) has somehow turned into that retired uncle who still insists he “could’ve been the next MRF if fate allowed.” As of December 2025, this ₹267 crore market cap relic is trading around ₹109, down nearly 7% in three months — because the stock, like its tyres, seems to have lost some air pressure. Despite its dramatic business mix — tyres, resin-coated sand, and even salons (yes, the kind where people get haircuts, not trucks) — the company managed to report ₹7.81 crore revenue and ₹4.56 crore PAT in the latest quarter (Q2 FY26).
The stock P/E is 15.8, book value ₹276, and it trades at just 0.39x book, cheaper than an overused scooter tyre. However, the ROE of 2.89% and ROCE of 3.28% show that the company earns less on its capital than what you get in your savings account. Still, the numbers show a YoY growth of 20% in sales — which, for a company making both tyres and beauty services, is an impressive multitasking act. The cherry on top? The operating margin is -69%, so the only thing truly inflated here is the optimism.
2. Introduction
Modi Rubber Ltd is not your typical auto component player. It’s like that one Bollywood actor who starts in an action movie, then produces a travel show, invests in a beverage company, and finally opens a salon. Incorporated in 1971, MRL is part of the famous Modi Group, known for its sprawling empire that once ruled India’s industrial scene before liberalization’s reality check deflated many of its ventures.
Today, MRL manufactures tyres, tubes, and flaps under its ‘MARATHAN’ brand, but its product list doesn’t stop at the auto industry. The company also makes resin-coated sand (used in foundries) and operates salons under the Modi Marco Aldany JV. Because who wouldn’t want a haircut from the same business group that makes truck tyres?
It has 62 depots, 20 C&F agents, and 3,000+ dealers, proving that its distribution network is still alive — even if its profit margins aren’t. With exports to the USA, Middle East, Pakistan, and Afghanistan, MRL continues to find markets that are, well, used to tough roads. But the financials tell a story of struggle, survival, and strategic diversification that’s both confusing and fascinating.
3. Business Model – WTF Do They Even Do?
Let’s be honest. If you walked into MRL’s boardroom today and asked, “So, what business are we in?” — you’d get four different answers.
First, the core tyre business: MRL manufactures truck and bus tyres, with facilities at Modipuram, Partapur, and Modinagar, totalling a production capacity of 1.7 million tyres and tubes annually.
Second, the resin-coated sand business: because apparently, once you’ve nailed rubber, sand is the next logical step.
Third, salons — yes, beauty salons, through a joint venture with Spanish chain Marco Aldany, under Modi Marco Aldany Pvt Ltd. This venture took a COVID hit, forcing multiple store shutdowns.
Fourth, the company holds investments and loans in various Modi Group entities, including Vinura Beverages Pvt Ltd (whose net worth eroded), and Uniglobe Travel South Asia Pvt Ltd, which also lost value. Basically, MRL’s portfolio looks like a financial reality show where everyone is trying not to get voted out.
So what’s MRL really? A tyre maker? A sand supplier? A salon owner? The answer is — all of the above, plus a collector of struggling associate companies.
4. Financials Overview
Here’s how the Q2 FY26 numbers stack up against the past:
