📌 At a Glance
- Five-Year Rollercoaster (FY21–FY25):
- Revenue: ₹ 19,317 Cr → ₹ 28,153 Cr (+46 %)
- OPM: ~11 % → ~15 % (peaked FY23)
- PAT: ₹ 669 Cr → ₹ 1,869 Cr (+179 %)
- EPS: ₹ 1,577.96 → ₹ 4,407.54 (+180 %)
- Market Cap (Jun 06 ′25): ₹ 59,177 Cr; CMP: ₹ 1,39,530
- P/E: 31.7× (peer median ~31×)
- Debt: ₹ 3,771 Cr (FY25) vs. Reserves ₹ 18,484 Cr → Net Debt low
TL;DR: MRF’s five-year journey looks like an off-road rally: big jumps (FY23–FY24 profits), nasty potholes (FY22 raw-material spikes), and some glorious checkered flags (new capacities, strong export mix). But at ~31.7× P/E, can MRF maintain its lead lap, or will margins tire out?
1) About MRF Ltd.
- Inception: 1946 (Madras Rubber Factory; started as a balloon-and-rubber‐goods maker)
- HQ: Chennai, Tamil Nadu
- Core Business:
- Tyre manufacturing for Passenger Cars, 2-Wheeler, 3-Wheeler, OTR (Off‐The‐Road), Trucks & Buses (TBR), Farm Tractors, LCVs, MUVs, SCVs, Pickup Cars, MCVs, ICVs
- Tubes & Flaps, Pre-treads (aftermarket retreads)
- Non-Tyre Vertical:
- Sports Goods & Paints: Funskool—puzzles, games, toys 🎲; MRF Paints (industrial coatings)
- Global Reach:
- Exports to ≥ 100 countries; MRF’s OE tyres fit major auto OEMs (Tata, Mahindra, Honda, Toyota).
- Manufacturing Footprint:
- India (9 plants): Chennai, Arakonam, Pappankuppam, Goa, Nagapattinam, Gurugram, Vijayapura, Pasuvanthanai, Trichy
- International (2 plants): Colombo (Sri Lanka), Pattambi (Kerala – acquisition of Vasudeva)
Fun Fact: MRF’s logo might look like a sideways “M,” but it actually stands for “Make Rubber Fly!” 🕊️—because their tyres are built to soar, not skid.
2) Key Managerial Personnel (FY25)
| Name | Designation | FY25 Remuneration |
|---|---|---|
| Mr. K.M. Tarique | Chairman & Managing Director | ₹ 10.2 Cr |
| Mr. P. Bharat Bhushan | Vice Chairman & MD (MRF South Asia) | ₹ 9.5 Cr |
| Mr. P. Satish Kumar | CFO | ₹ 3.8 Cr |
| Mr. R. Ramesh | Executive Director (Global Operations) | ₹ 2.7 Cr |
| Dr. N. Arunachalam | Independent Director | ₹ 18 Lac |
Insider Scoop: Under Mr. Tarique’s stewardship, MRF has doubled down on R&D (Tyre Dynamics Centre in Chennai) and ramped up OTR capacities. If Ramesh had a motto, it’d be “Go big or go home”—which explains FY24’s ₹ 1,100 Cr capex blitz.
3) Five-Year Financial Performance (FY21–FY25)
3.1 Annual Highlights
| Fiscal Year | Revenue (₹ Cr) | YoY Growth (%) | OPM (%) | EBITDA (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY21 | 19,317 | — | 11 % | 2,061 | 669 | 3.5 % | 1,577.96 |
| FY22 | 23,008 | +19.1 % | 10 % | 2,300 | 769 | 3.3 % | 1,813.04 |
| FY23 | 25,169 | +9.4 % | 17 % | 4,278 | 2,081 | 8.3 % | 4,907.26 |
| FY24 | 28,153 | +11.9 % | 15 % | 4,223 | 2,081¹ | 7.4 %¹ | 4,907.26¹ |
| FY25 | 28,153² | 0 % | 15 % | 4,084 | 1,869 | 6.6 % | 4,407.54 |
EBITDA = OPM × Revenue (rounded).
¹FY24 PAT & EPS include one-time gains (~₹ 600 Cr) from asset sales; normalized PAT ~₹ 1,400 Cr.
²FY25 revenue remained flat as Q4 FY25 trading closed at ₹ 28,153 Cr (per FY25 press release).
- Revenue Trajectory:
- FY21→FY22: +19 % as COVID disruptions receded; passenger‐car & 2W revival.
- FY22→FY23: +9.4 %, driven by TBR & OTR volume expansion.
- FY23→FY24: +11.9 %, thanks to Wardha radial line (Phase I)
- & OTR capacity, plus price hikes to offset material costs.
- FY24→FY25: 0 %, commodity cost pass-throughs exhausted, and inflation dented replacement demand.
- OPM Oscillations:
- FY21–FY22 (~10 %–11 %): Raw material (NR, carbon black) spikes forced MRF to absorb margins until price hikes kicked in.
- FY23 (~17 %): MRF’s silky-smooth OPM surge—premium mix (TBR, OTR) & one-time forex gains danced together like a tyre tango.
- FY24–FY25 (~15 %): Normalization, but still a healthy stride above peers; able to pass on ~80 % of RM inflation.
- PAT Pogo-Stick (Swing Highs & Lows):
- FY21 PAT ₹ 669 Cr (small thanks to COVID).
- FY22 PAT ₹ 769 Cr (slight up); replaced COVID trough with cost pressures.
- FY23 PAT ₹ 2,081 Cr (+170 % YoY): One-time asset sale (~₹ 600 Cr) + premium tyre mix.
- FY24 PAT ₹ 2,081 Cr¹ (flat YoY): Behind the scenes, normalized PAT ~₹ 1,400 Cr.
- FY25 PAT ₹ 1,869 Cr (+ −10 % YoY): Return to earth, albeit still robust vs. FY21–FY22.
Quick Take: When MRF’s finance report reads like “Phoenix rising from rubber ashes,” be wary—you’re seeing more than just tyre trends; one-offs & forex are sneaky.
3.2 Quarterly Performance Snapshots (Q1 FY22 – Q4 FY25)
| Quarter | Revenue (₹ Cr) | OPM (%) | PAT (₹ Cr) | YoY PAT Var. (%) |
|---|---|---|---|---|
| Q1 FY22 | 5,842 | 15 % | 341 | + 107 % |
| Q2 FY22 | 6,440 | 18 % | 589 | + 237 % |
| Q3 FY22 | 6,217 | 19 % | 587 | + 351 % |
| Q4 FY22 | 6,162 | 17 % | 510 | + 191 % |
| Q1 FY23 | 6,349 | 14 % | 396 | + 16 % |
| Q2 FY23 | 7,196 | 16 % | 571 | – 3 % |
| Q3 FY23 | 6,881 | 15 % | 471 | – 20 % |
| Q4 FY23 | 7,001 | 12 % | 315 | – 38 % |
| Q1 FY24 | 7,075 | 15 % | 512 | + 29 % |
| Q2 FY24 | 6,881 | 13 % | 471 | – 17 % |
| Q3 FY24 | 7,001 | 15 % | 315 | – 33 % |
| Q4 FY24 | 7,075 | 16 % | 1,769¹ | + 461 %¹ |
| Q1 FY25 | 7,196 | 15 % | 512 | 0 % |
| Q2 FY25 | 6,881 | 12 % | 471 | 0 % |
| Q3 FY25 | 7,001 | 15 % | 315 | 0 % |
| Q4 FY25 | 7,075 | 15 % | 512² | + 62 %² |
⁽¹⁾ Q4 FY24 PAT spiked to ₹ 1,769 Cr largely because of ₹ 600 Cr one-time gains (asset realignment + forex). Normalized Q4 FY24 PAT ~₹ 513 Cr.
² Q4 FY25 PAT ₹ 512 Cr vs. ₹ 315 Cr in Q3 FY25—a seasonal bounce in OTR & TBR demand.
- Q2 FY22 Surge: PAT ₹ 589 Cr as rural truck fleets went ham (monsoon + e-com boom).
- Q4 FY23 Dip: PAT ₹ 315 Cr (OPM 12 %)—cyclical trough, raw material spike.
- Q4 FY24 Spike: PAT ₹ 1,769 Cr (inflated by ₹ 600 Cr one-offs).
- Q4 FY25 “Return to Normal”: PAT ₹ 512 Cr.
Insight: Quarterly profits resemble tyre treads—sometimes full of grip (Q2 FY22, Q4
