JK Tyre & Industries
JK Tyre & Industries
AutomobilesKey Fundamentals
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Key Insights
Strengths
1- Company has delivered good profit growth of 24.4% CAGR over last 5 years
Weaknesses
1- Promoter holding has decreased over last 3 years: -4.54%
Growth Rate
AI Analysis — Bull vs Bear
JK Tyre & Industries is a mid-cap tyre manufacturer with a market cap of approximately ₹11,598 crore, trading at a PE of 14.8x. The company delivered strong 5-year profit CAGR of 24.4% but faced margin pressure in FY25 with consolidated revenue declining to ₹14,693 crore from ₹15,002 crore in FY24 and Q4 FY25 net profit falling 42.7% YoY.
- Strong 5-year compounded profit growth of 24% CAGR, accelerating to 44% over 3 years and 66% TTM
- Reasonable valuation at PE of 14.8x, below many auto-sector peers, with price-to-book at 1.89x
- Consistent ROE performance at 16% over the last year and 3-year average, indicating efficient capital utilization
- Significant deleveraging with debt-to-equity reduced to approximately 0.78x from historically higher levels, as confirmed by management
- Stock CAGR of 22% over 5 years and 16% over 10 years demonstrates sustained long-term wealth creation
- FY26 revenue recovered to ₹16,327 crore, up 11.1% from FY25's ₹14,693 crore, signaling a return to growth
- Promoter holding remains relatively healthy at approximately 50-52%, providing management stability
- Dividend yield of 1.01% provides a small income cushion while the company continues to invest in growth
- FY25 consolidated revenue declined to ₹14,693 crore from ₹15,002 crore in FY24, a 2% YoY drop
- Q4 FY25 net profit fell 42.7% YoY to ₹97 crore due to margin compression, with EBITDA margin contracting from 13.4% to 10.2%
- Operating profit (PBIDT) declined sharply to ₹1,678 crore in FY25 from ₹2,122 crore in FY24, reflecting raw material cost pressure
- Promoter holding has decreased by 4.54% over the last 3 years, signaling potential dilution or lack of confidence
- Modest 10-year compounded sales growth of only 9% and 3-year sales CAGR of just 4% indicate limited topline momentum
- The tyre industry faces cyclical raw material cost volatility (natural rubber, crude-derived inputs) that pressures margins unpredictably
- 10-year compounded profit growth of only 6% suggests the recent profit surge may be mean-reverting from a low base rather than structural
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- FY26 PAT surges 50% Jul 13
JK Tyre reported FY26 revenue of ₹16,384 crore (up 11%), EBITDA of ₹2,089 crore (up 25%), and PAT of ₹774 crore (up 50%).
- Rs 2 crore interest waiver Jul 23
JK Tyre received a Rs 2 crore interest waiver under the Rajasthan Stamp Act, confirmed by the Collector Stamps, Jaipur.
- AGM set for Aug 6, 2026 Jul 13
JK Tyre's 73rd AGM is scheduled for August 6, 2026, with agenda items including approval of ₹4 dividend and re-appointment of key directors.
- FY26 sustainability report released Jul 13
JK Tyre published its Business Responsibility and Sustainability Report for FY 2025-26, detailing ESG performance and operational metrics.
TL;DR: JK Tyre is delivering strong financial momentum with 50% PAT growth and healthy margin expansion in FY26. No material headwinds are visible in recent news flow. The ₹4 dividend and consistent ESG reporting signal stable capital allocation. The trend is clearly improving, and the focus will be on whether double-digit revenue growth sustains into FY27.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,718 | 3,898 | 3,688 | 3,698 | 3,639 | 3,622 | 3,674 | 3,759 | 3,869 | 4,011 | 4,223 | 4,223 | 3,946 |
| Expenses | 3,261 | 3,308 | 3,138 | 3,217 | 3,139 | 3,200 | 3,359 | 3,396 | 3,467 | 3,490 | 3,652 | 3,686 | 3,688 |
| Operating Profit | 457 | 589 | 550 | 481 | 500 | 421 | 314 | 363 | 402 | 521 | 571 | 537 | 258 |
| OPM % | 12% | 15% | 15% | 13% | 14% | 12% | 9% | 10% | 10% | 13% | 14% | 13% | 7% |
| Other Income | 13 | 5 | 8 | -9 | 15 | 11 | 3 | 19 | 34 | 7 | -92 | -37 | 20 |
| Interest | 122 | 109 | 107 | 109 | 112 | 120 | 123 | 121 | 115 | 108 | 106 | 101 | 99 |
| Depreciation | 106 | 108 | 111 | 112 | 113 | 113 | 114 | 117 | 114 | 116 | 119 | 123 | 126 |
| PBT | 242 | 377 | 341 | 252 | 290 | 199 | 80 | 144 | 208 | 304 | 254 | 277 | 54 |
| Tax % | 34% | 34% | 33% | 31% | 27% | 27% | 29% | 29% | 26% | 27% | 18% | 32% | 21% |
| Net Profit | 159 | 249 | 227 | 172 | 218 | 140 | 53 | 99 | 163 | 227 | 208 | 178 | 44 |
| EPS in Rs | 6.25 | 9.83 | 8.47 | 6.49 | 8.11 | 4.93 | 1.92 | 3.54 | 5.97 | 8.28 | 7.21 | 6.17 | 1.53 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 7,315 | 6,898 | 7,689 | 8,272 | 10,368 | 8,723 | 9,102 | 11,983 | 14,645 | 15,002 | 14,693 | 16,327 | 16,404 |
| Expenses | 6,384 | 5,782 | 6,557 | 7,535 | 9,256 | 7,737 | 7,796 | 10,910 | 13,347 | 12,911 | 13,094 | 14,295 | 14,516 |
| Operating Profit | 931 | 1,117 | 1,132 | 737 | 1,112 | 986 | 1,306 | 1,073 | 1,298 | 2,091 | 1,599 | 2,031 | 1,887 |
| OPM % | 13% | 16% | 15% | 9% | 11% | 11% | 14% | 9% | 9% | 14% | 11% | 12% | 12% |
| Other Income | -30 | 11 | 135 | 135 | -5 | -76 | 81 | 40 | -25 | 4 | 48 | -88 | -102 |
| Interest | 257 | 252 | 440 | 466 | 521 | 549 | 466 | 419 | 454 | 447 | 476 | 428 | 413 |
| Depreciation | 158 | 216 | 291 | 299 | 316 | 378 | 387 | 385 | 407 | 437 | 456 | 472 | 484 |
| PBT | 486 | 660 | 535 | 107 | 270 | -17 | 534 | 309 | 411 | 1,211 | 713 | 1,043 | 888 |
| Tax % | 33% | 31% | 29% | 41% | 35% | -989% | 38% | 35% | 36% | 33% | 28% | 26% | — |
| Net Profit | 330 | 467 | 381 | 63 | 171 | 141 | 331 | 201 | 263 | 806 | 509 | 776 | 657 |
| EPS in Rs | 14.53 | 20.6 | 16.55 | 2.91 | 7.16 | 6.12 | 12.97 | 8.53 | 10.66 | 30.16 | 18.59 | 26.92 | 23.19 |
| Div. Payout % | 10% | 12% | 15% | 52% | 21% | 11% | 15% | 18% | 19% | 15% | 16% | 15% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 45 | 45 | 45 | 45 | 49 | 49 | 49 | 49 | 49 | 52 | 55 | 58 |
| Reserves | 1,356 | 1,706 | 1,919 | 1,916 | 2,235 | 2,282 | 2,623 | 2,799 | 3,347 | 4,435 | 4,929 | 6,003 |
| Borrowings | 2,975 | 2,900 | 5,655 | 5,811 | 5,758 | 5,549 | 4,801 | 5,220 | 4,882 | 4,609 | 4,911 | 4,882 |
| Other Liabilities | 2,528 | 2,401 | 2,776 | 2,762 | 3,227 | 3,333 | 3,467 | 4,092 | 4,061 | 4,915 | 4,539 | 4,971 |
| Total Liabilities | 6,904 | 7,052 | 10,395 | 10,535 | 11,269 | 11,213 | 10,940 | 12,161 | 12,339 | 14,012 | 14,435 | 15,914 |
| Fixed Assets | 2,701 | 3,747 | 5,794 | 6,142 | 6,228 | 6,382 | 6,242 | 6,429 | 6,467 | 6,829 | 6,752 | 7,183 |
| CWIP | 830 | 106 | 326 | 309 | 270 | 284 | 299 | 106 | 195 | 367 | 418 | 1,100 |
| Investments | 140 | 160 | 73 | 128 | 131 | 140 | 147 | 133 | 144 | 138 | 123 | 121 |
| Other Assets | 3,232 | 3,039 | 4,202 | 3,956 | 4,640 | 4,407 | 4,252 | 5,493 | 5,533 | 6,677 | 7,142 | 7,510 |
| Total Assets | 6,904 | 7,052 | 10,395 | 10,535 | 11,269 | 11,213 | 10,940 | 12,161 | 12,339 | 14,012 | 14,435 | 15,914 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 734 | 903 | 106 | 637 | 797 | 1,237 | 1,598 | 346 | 1,224 | 1,614 | 716 | 1,444 |
| Investing | -806 | -511 | -807 | -394 | -261 | -319 | -134 | -244 | -398 | -1,203 | -463 | -611 |
| Financing | -1 | -422 | 830 | -409 | -522 | -963 | -1,441 | -96 | -747 | -413 | -237 | -783 |
| Net Cash Flow | -73 | -31 | 128 | -165 | 14 | -44 | 23 | 5 | 79 | -2 | 15 | 50 |
| Free Cash Flow | -65 | 357 | -175 | 219 | 539 | 964 | 1,439 | 54 | 826 | 870 | 128 | 38 |
| CFO/OP | 93 | 95 | 21 | 94 | 79 | 129 | 129 | 39 | 105 | 88 | 61 | 81 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 72 | 74 | 85 | 68 | 68 | 77 | 63 | 60 | 57 | 67 | 70 | 72 |
| Inventory Days | 70 | 82 | 111 | 101 | 92 | 111 | 119 | 110 | 79 | 92 | 100 | 96 |
| Days Payable | 84 | 90 | 102 | 81 | 87 | 115 | 105 | 99 | 66 | 87 | 75 | 78 |
| Cash Conversion Cycle | 57 | 66 | 94 | 88 | 73 | 73 | 78 | 71 | 70 | 72 | 96 | 90 |
| Working Capital Days | -25 | -13 | -5 | -37 | -13 | 73 | -10 | -13 | -3 | 2 | 11 | 35 |
| ROCE % | 19% | 20% | 14% | 6% | 10% | 8% | 12% | 9% | 11% | 19% | 13% | 16% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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65 extracted metrics + investor summaries across FY10–FY27.
Documents
Frequently Asked Questions about JK Tyre & Industries
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Company Information
JK Tyre & Industries is the flagship company of the JK group which is headed by Dr R P Singhania as its chairman and managing director. It is a one of the leading tyre manufacturers in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments that includes Truck/Bus, LCV (Light commercial vehicles), Passenger Cars, MUV (Multi utility vehicles) and Tractors. [1]
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