JK Tyre Q2 profit rises 47.58% QoQ; margin improves 0.36 pp
Revenue growth slightly outpaced expenses, but operating margin remained well below the sector median and other income contributed only 2.03% of pre-tax profit.
Filed 23 Oct 2026, 17:02 IST · after market close · JK Tyre & Industries Ltd (JKTYRE)
Key takeaways
- Consolidated revenue rose +22.67% QoQ to Rs 4,840.73 cr, as expenses grew slightly slower at +22.20%.
- Operating margin improved 0.36 percentage points QoQ to 6.90%, but remained 5.52 percentage points below the 50-peer sector median.
- Net profit rose +47.58% QoQ to Rs 65.07 cr despite a 14.00-percentage-point increase in the tax rate, while other income contributed only 2.03% of PBT.
Price around the results
Q2 growth outpaced the cost base
JK Tyre’s consolidated revenue rose +22.67% QoQ to Rs 4,840.73 cr, slightly ahead of the +22.20% increase in expenses. That operating leverage lifted operating profit by +29.31% to Rs 333.91 cr. Net profit increased +47.58% QoQ to Rs 65.07 cr, helped by the stronger operating result.
Tax and interest absorbed part of the operating gain
Operating margin expanded by 0.36 percentage points because costs grew marginally slower than revenue. Interest expense rose +10.16%, while the tax rate increased by 14.00 percentage points to 34.04%, so net profit growth trailed the +78.91% increase in pre-tax profit. Other income was only 2.03% of PBT, limiting the quarter’s reliance on non-operating income.
Margin recovered slightly after the Q4 collapse
The 6.90% operating margin improved from 6.54% in Q1FY27 but remained well below Q4FY26’s 12.72%. Against 50 Consumer Discretionary peers that had reported, JK Tyre’s margin was 5.52 percentage points below the 12.42% median and ranked 12th from the bottom.
Shares fell after the results
The stock declined 2.80% on 26 October, with a relative performance of -3.48% and trading volume at 1.83 times the reference level. The company filed the consolidated results at 17:02 IST on 23 October, after market close.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4,841 cr | ₹3,946 cr | +22.67% |
| Other income | ₹2 cr | ₹22 cr | -90.76% |
| Expenses | ₹4,507 cr | ₹3,688 cr | +22.20% |
| Operating profit | ₹334 cr | ₹258 cr | +29.31% |
| Operating margin (%) | 6.90% | 6.54% | — |
| Interest | ₹109 cr | ₹99 cr | +10.16% |
| Depreciation | ₹128 cr | ₹126 cr | +1.96% |
| Profit before tax | ₹99 cr | ₹55 cr | +78.91% |
| Tax | ₹34 cr | ₹11 cr | +203.89% |
| Net profit | ₹65 cr | ₹44 cr | +47.58% |
| EPS (₹) | ₹2.29 | ₹1.55 | +47.74% |
Operating margin of 6.90% compares with a Consumer Discretionary sector median of 12.42% across 50 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.80% | -3.48% |
Volume on the results session was 1.83× its 20-day average.
What to watch
- Whether operating margin holds above 6.90% after 12.72% in Q4FY26.
- Whether revenue growth stays ahead of expense growth after +22.67% versus +22.20% QoQ.
- Whether the tax rate moves down from 34.04% while interest growth remains below +10.16%.