MRF Q3FY26 Results: Tyre maker MRF Ltd on Friday reported a sharp jump in profitability for the December quarter, aided by improved margins and steady demand from the automobile sector.
The company posted a 119 per cent year-on-year rise in consolidated net profit at Rs 692 crore for Q3FY26, compared with Rs 315.46 crore in the corresponding quarter last year. On a sequential basis, profit increased 31.6 per cent from Rs 525.64 crore reported in the September quarter.
The company’s strong earnings performance was majorly due to sharp expansion in margins. Net profit margin nearly doubled to 8.46 per cent during the quarter, compared with 4.44 per cent in Q3FY25, indicative of better operating leverage and favourable demand conditions.
MRF, however, said it recognised a one-time cost of Rs 77.2 crore during the quarter due to higher gratuity and leave liabilities following the implementation of new labour codes.
Revenue from operations rose 15 per cent year-on-year to Rs 8,050.43 crore in Q3FY26, from Rs 7,000.82 crore a year ago. On a quarter-on-quarter basis, revenue increased 9.1 per cent from Rs 7,378.72 crore in Q2FY26.
The company’s revenue continued to track the broader momentum in automobile sales. According to Reuters, overall auto sales grew 17.6 per cent in Q3FY26, led by a 20.6 per cent rise in passenger vehicle sales, while two-wheeler sales increased nearly 17 per cent, supporting tyre demand across both OEM and replacement segments.
Dividend announcement
Along with its quarterly results, MRF announced an interim dividend of Rs 3 per share, with February 13 fixed as the record date. Following the earnings announcement, shares of MRF jumped 8.6 per cent to Rs 1,46,545 apiece on the BSE at around 2.10 pm on Friday.
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