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1. At a Glance
MRF sold ₹8,415.50 crore worth of rubber in the June 2026 quarter, which is 9.64% more rubber than the same quarter last year, and turned ₹495.35 crore of it into profit — 1.29% less profit than the same quarter last year. Revenue went up. Profit went sideways-and-slightly-down. The line that explains the geometry sits between them: operating profit came in at ₹990.63 crore against ₹1,070.43 crore a year ago, and OPM printed 12% against 14%.
For a company that has spent its entire existence converting a tropical tree secretion into circular objects that people replace every three years without ever once thinking about the manufacturer, this is a fairly typical quarter of weather.
Other Income was ₹195.06 crore, the largest quarterly figure in the ten quarters on the sheet. Depreciation was ₹447.67 crore, which is a number that shows up every quarter with the punctuality of a landlord. Finance costs were ₹88.33 crore.
Full-year FY26, which closed in March, put revenue at ₹31,148.57 crore and net profit at ₹2,426.09 crore — the highest annual profit in the decade shown. The market cap is ₹56,284 crore and the market pays 22.8x here, against an industry P/E of 23.4.
The board also met on 11 August 2026 and, in between approving results, appointed two senior management personnel. Two of the more interesting numbers this quarter aren’t in the P&L at all — they’re in the cash flow and the balance sheet.
2. Introduction
MRF began life as The Madras Rubber Factory, a partnership firm started by the late K M Mammen Mapillai, and was incorporated as a private limited company in 1960 to take it over. Sixty-six years later it is, per CARE Ratings, India’s largest manufacturer of automotive tyres and tubes, with nine plants and — as on 31 March 2025 — installed capacity of 95.85 million tyres and 47.90 million tubes and flaps. That capacity number has moved from 53.40 million in FY16, which is one of the more monotonous growth charts in Indian manufacturing and probably the most reassuring.
CARE puts MRF’s share of total estimated industry sold units at roughly 30%, a figure that has sat in the 26–30% band since FY16 with the emotional range of a metronome. The dealer network has been over 5,000 active dealers since FY18 and was 5,000 in FY16 too, which suggests the company found its number early and saw no reason to make a fuss about it.
The last twelve months have been busy in the way large industrials are busy — mostly in courtrooms and MoU signings rather than press conferences. In March 2026 MRF signed a non-binding facilitation MoU with the Government of Tamil Nadu for a ₹5,300 crore greenfield tyre plant at Sivaganga over twelve years, with around 1,000 jobs indicated. In October 2025 it agreed to acquire up to 26% in Serentica Renewables for ₹99 crore for captive solar and wind supply, with completion set for 31 July 2026 — the third such renewable stake after Clean Max Omni (26%, October 2024) and First Energy (27.2%, January 2024). A tyre company quietly assembling a portfolio of power generators is one way to read the electricity line item.
On the litigation side: CESTAT allowed an MRF appeal in March 2026, overturning a ₹221.31 crore GST/excise demand; ITAT allowed appeals for AY 2015-16 and 2016-17 in May, reducing demands of ₹89.62 crore and ₹92.46 crore to nil; and the Madras High Court ruled for MRF on a ₹74.70 crore Modvat dispute in July 2025. Meanwhile the CCI penalty of ₹622 crore imposed in February 2022 for alleged Competition Act violations during 2011-2012 remains unresolved — NCLAT sent it back to CCI in December 2022, both parties appealed to the Supreme Court, and as of FY24 it was still under judicial review. Also on the record: three income-tax penalty orders dated 23 March 2026 totalling ₹55,45,106, and a ₹4,12,908 penalty from a Deputy Commissioner 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 product list, from the company’s own disclosure, covers passenger cars, two-wheelers, three-wheelers, OTRs, trucks, farm tractors, LCVs, tubes and flaps, SCVs, pickup cars, MCVs and ICVs — a catalogue that reads like someone was asked to name every wheeled thing in India and refused to stop until they’d got to the tractors.
It also makes sports goods, paints and coats, and pretreads. And — this is the part that makes MRF one of the more delightful corporate structures on the exchange — it supplies puzzles, games and toys for children through its brand Funskool. Somewhere inside a ₹56,284 crore tyre conglomerate is a division whose job is board games.
The economics live in the customer mix. Per CARE, FY25 revenue split OEM : replacement : export at 22% : 70% : 8%. That 70% replacement share is the load-bearing wall of the whole business: it means most of MRF’s revenue comes not from carmakers negotiating with a procurement team, but from a person whose tyre has gone bald, walking into one of 5,000-plus dealerships and pointing. CARE notes the replacement segment is relatively stable and margin-accretive, and that its high share limits risks from competition and automobile-industry cyclicality.
Segment-wise for FY25, per CARE: Truck and Bus 49%, 2W and 3W 19%, SCV/LCV 10%, passenger car 13%, others 9%. The single biggest customer for India’s largest tyre company is, effectively, a lorry.
Product-wise in FY24 it was automobile tyres 91%, tubes 6%, speciality coating and others 3% — so the paints-and-puzzles empire, charming as it is, occupies roughly the same share of the revenue line as a rounding convention.
There’s also a services layer:
