You could say they are going all in on radials. After a quarter like this, with an 83% lift in net profit to Rs 188 crore, a Rs 4,980 crore expansion is in the works. They wrapped up FY26 with a best-ever top line of Rs 16,384 crore, a sign of where the market is heading and a way to hold their ground.
Aggressive capacity build to defend share
The board has given the go-ahead to put 24% more truck, bus and passenger car radial capacity in the ground by FY30. You’ll see it happen at the Chennai and Vikrant facilities.
They will be putting together the funding from a combination of what they can put aside and some debt.
It’s well-timed. We’re already seeing over 90% utilisation in both radial lines, which puts a strain on things as orders come in from the domestic side. All told, including what is in the pipeline, they have 210 lakh TBR and PCR tyres a year in them.
Quarter that sets up the next phase
The numbers in the March quarter tell the story of operating leverage at work. EBITDA for Q4 was up 42% to Rs 546 crore, with the margin coming in at 12.9%. In all, they did Rs 4,233 crore in consolidated business for the three months.
If you ask management, it was a case of a better product mix, more volume and some relief on the raw material front making for a healthier bottom line.
On the home front, volumes were 21% higher, with the OE side up a full 42%. It shows they have the ear of the automakers and there is plenty of freight moving around the country.
Record FY26 and a confident payout
Over the course of the year, the top line came in at Rs 16,384 crore, an 11% improvement. EBITDA was 25% higher at Rs 2,089 crore. They made Rs 774 crore in net and had a pre-tax figure of Rs 1,043 crore.
Even with capex on the rise, the board is feeling good about cash flow and has put out a 200% dividend, or Rs 4 a share.
Raghupati Singhania, the chairman and MD, put it down as a landmark year. He points to the kind of demand you get when you have GST and tax changes behind you, rates are down and the economy is picking up.
What is powering the demand
There have been hiccups in the world, not least in West Asia, but exports have been steady. The Mexico arm, JK Tornel, has done its part for the overall books.
As costs start to creep up, they are making a point of selling more of the premium stuff, at home and abroad, to keep the margins in check.
Strategic context and competitive implications
With 24% more capacity in the offing, you can see an offensive move in a market that is coalescing around scale and radial tech. They are targeting the very segments where they are running hot and have good OE pull.
It is a way to put some heft behind pricing while you build up your run rate. It is in line with the kind of margin you saw in the last quarter.
A few things to put in your notebook:
– They are expanding where the demand is
– With utilisation over 90%, the investment makes sense
– A nudge towards premium products to even out the margins
– The OE side is showing you how close they are to the carmakers
– The dividend is a way to give back to shareholders without short-changing the capex
Risks and what to track next
Management has put out a word of caution for FY27 on input costs and the state of the world. But for now, they are saying the domestic side is in good shape and so are the exports.
How they put this into practice at Chennai and Vikrant will be the test. Keep an eye on whether they hit their timelines on the new capacity and if the product mix and raw material situation holds up.
Bottom line
JK Tyre is leaving FY26 with a record in the bank and a much-improved Q4. They have a no-nonsense plan to add 24% to TBR and PCR output by FY30 with the nearly Rs 5,000 crore they have earmarked. It is about being in a position to take the demand and have the operating leverage to show for it.
