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1. At a Glance
MRF sells tyres. In the three months to June 2026 the company booked revenue of ₹8,415.50 crore. That is 9.64% more than the same quarter a year earlier. Net profit was ₹495.35 crore, down 1.29% on the same quarter last year.
The line between those two explains the shape. Operating profit came in at ₹990.63 crore against ₹1,070.43 crore a year earlier. Operating profit margin, the share of sales left after running costs, printed 12% against 14%.
MRF has spent its entire existence turning a tropical tree secretion into round objects that drivers replace every three years or so.
Other income was ₹195.06 crore, the largest quarterly figure in the ten quarters on the sheet. Depreciation, the yearly write-down of plant and machinery, was ₹447.67 crore. It turns up every quarter with the punctuality of a landlord. Finance costs were ₹88.33 crore.
The year to March 2026 put revenue at ₹31,148.57 crore and net profit at ₹2,426.09 crore. That is the highest annual profit in the decade shown on the sheet. Market capitalisation is ₹56,284 crore. The market pays ₹22.80 for every ₹1 of yearly profit. For the industry as a whole the figure is ₹23.40.
The board met on 11 August 2026. Between approving the results it appointed two senior management personnel.
2. Introduction
MRF began as The Madras Rubber Factory, a partnership firm started by the late K M Mammen Mapillai. It was incorporated as a private limited company in 1960 to take that firm over. CARE Ratings, a credit-rating agency, calls MRF India’s largest manufacturer of automotive tyres and tubes. The company runs nine plants. Installed capacity as on 31 March 2025 was 95.85 million tyres. Tubes and flaps capacity was 47.90 million on the same date. The tyre figure stood at 53.40 million in the year to March 2016. The capacity chart climbs in small steps and does very little else.
CARE puts MRF’s share of total estimated industry sold units at roughly 30%. CARE’s figures have sat in the 26 to 30% band since the year to March 2016, with the emotional range of a metronome. The dealer network has been over 5,000 active dealers since the year to March 2018. It stood at 5,000 in the year to March 2016 as well.
The past year has been busy in courtrooms and at signing ceremonies rather than at press conferences. In March 2026 MRF signed a non-binding facilitation memorandum with the Government of Tamil Nadu. It covers a ₹5,300 crore greenfield tyre plant at Sivaganga, built over twelve years, with around 1,000 jobs indicated. In October 2025 the company agreed to buy up to 26% of Serentica Renewables for ₹99 crore. The stake is for captive solar and wind supply, meaning power generated for MRF’s own use, with completion set for 31 July 2026. It is the third such renewable stake, after Clean Max Omni at 26% in October 2024. First Energy came before that, at 27.2% in January 2024.
CESTAT, the customs and excise appeals tribunal, allowed an MRF appeal in March 2026. That order overturned a GST and excise demand of ₹221.31 crore. ITAT, the income-tax appeals tribunal, allowed appeals for assessment years 2015-16 and 2016-17 in May. Demands of ₹89.62 crore and ₹92.46 crore were reduced to nil. The Madras High Court ruled for MRF in July 2025 on a ₹74.70 crore dispute over Modvat, an old credit for excise already paid.
The Competition Commission of India imposed a penalty of ₹622 crore in February 2022, for alleged Competition Act violations during 2011 and 2012. It remains unresolved. NCLAT, the appellate tribunal, sent the matter back to the Commission in December 2022. Both parties then appealed to the Supreme Court, and as of the year to March 2024 it was still under judicial review. Three income-tax penalty orders dated 23 March 2026 total ₹55,45,106. A Deputy Commissioner imposed a further penalty of ₹4,12,908 in August 2025. The company said it would appeal both.
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3. Business Model: WTF Do They Even Do?
MRF makes tyres. Then it makes more tyres. The company’s own disclosure lists tyres for passenger cars, two-wheelers, three-wheelers and trucks. It also lists farm tractors, pickup cars and off-the-road tyres for earthmovers and similar machines. Then come medium and intermediate commercial vehicles, light and small commercial vehicles, tubes and flaps. Somebody was evidently asked to name every wheeled thing in India and refused to stop before the tractors.
Beyond rubber for roads there are sports goods, paints and coats, and pretreads. There is also Funskool, the brand under which MRF supplies puzzles, games and toys for children. Inside a tyre company with a market value of ₹56,284 crore sits a division that makes board games.
The economics live in the customer mix. Per CARE Ratings, a credit-rating agency, revenue in the year to March 2025 split three ways. Vehicle makers fitting tyres at the factory took 22%, replacement buyers 70% and exports 8%. That replacement share is the load-bearing wall of the business. Most revenue comes from a person whose tyre has gone bald, walking into one of over 5,000 dealerships and pointing. CARE notes the replacement segment is relatively stable and adds to margin. CARE also says its high share limits risks from competition and from vehicle-industry cycles.
Per CARE, truck and bus tyres were 49% of revenue in the year to March 2025. Two- and three-wheelers were 19%, passenger cars 13% and
