JK Tyre Plans 4-5% Price Hike in Q3 as Profit Falls 73%

JK Tyre & Industries plans a further 4% to 5% tyre price increase in the third quarter of FY27, after raw material costs squeezed its September-quarter profit. The company reported consolidated Q2 FY27 profit after tax of Rs 59.99 crore, down 73% from Rs 222.55 crore a year earlier, on record revenue of Rs 4,840.73 crore.

Autocar Professional reported the results and pricing plans on October 23, 2026. Managing Director Anshuman Singhania said: “we intend to also increase prices in Q3 in the range of 4% to 5%.”

How Much Has JK Tyre Raised Prices So Far?

JK Tyre raised prices by about 11% to 12% in the first half of FY27, according to the report: roughly 4% to 5% in Q1 and 7% quarter-on-quarter in Q2. The raw material basket rose about 9% sequentially in Q2 and about 30% cumulatively over six months.

What Were JK Tyre’s Q2 FY27 Results?

Revenue from operations rose 20.7% from Rs 4,011.31 crore to Rs 4,840.73 crore, the company’s highest-ever quarterly revenue. EBITDA fell 35.9% to Rs 343.14 crore from Rs 535.68 crore, and EBITDA margin dropped to 7.1% from 13.4%, a fall of about 630 basis points. Cost of materials consumed was Rs 3,392.71 crore, up 11.7% sequentially and 39% year-on-year.

Is Tyre Demand Still Growing?

Domestic sales rose 32% year-on-year, with original equipment manufacturer (OEM) sales up 65% and replacement sales up 20%. Larger-rim passenger car OEM tyres of 16 inches and above made up about 40% of the OEM mix in H1 FY27, up from 35% in FY26.

Market Reaction and Industry Response

ICRA’s September 30 update projected that industry operating margins could contract by about 200 basis points in FY27, while domestic tyre demand grows an estimated 5% to 7%. No share-price reaction or competitor pricing response was found in the source report at the time of writing.

What Happens Next?

Watch for the timing of JK Tyre’s Q3 price increase, raw material and freight trends, and whether other tyre makers follow with their own hikes. Replacement-market demand will show whether higher prices hold back buying.

Frequently Asked Questions

How much will JK Tyre raise prices in Q3 FY27?

The company intends a further increase of 4% to 5% in Q3, on top of cumulative hikes of about 11% to 12% in the first half.

What was JK Tyre’s Q2 FY27 profit?

Consolidated profit after tax was Rs 59.99 crore, down 73% from Rs 222.55 crore a year earlier.

Why did JK Tyre’s profit fall despite record revenue?

Raw material costs rose about 30% cumulatively over six months, cutting EBITDA margin to 7.1% from 13.4%.