MRF’s Q2 profit skids 27% as raw material costs squeeze margins

MRF registered strong double-digit sales growth, supported by sustained demand from both original equipment (OE) and replacement segments. MRF Ltd reported a 26.6% year-on-year (YoY) decline in consolidated net profit to ₹386.99 crore for the second quarter ended September 30, 2026, as a sharp rise in raw material costs eroded margins despite robust revenue growth.Consolidated total income rose 17.4% to ₹8,791.58 crore during the quarter. However, profit before tax (PBT) fell 25.5% YoY to ₹521.81 crore. Earnings per share declined to ₹912.46 from ₹1,243.60.The cost of materials consumed surged 43.1% YoY to ₹6,552.57 crore. Total expenses increased 21.8% YoY to ₹8,269.77 crore.In its earnings statement, MRF said it had registered strong double-digit sales growth, supported by sustained demand from both original equipment (OE) and replacement segments.However, “The steep increase in prices of raw materials due to global uncertainties adversely affected profitability during the quarter. Price increase and cost saving measures by the Company helped to mitigate cost pressures.”Flagging continued uncertainty, the company said, “The company anticipates continued disruptions and volatility in commodity markets. Raw material and logistics costs are expected to remain elevated. We will continue to take measured steps to address these challenges.”For the six months ended September 30, consolidated income rose to ₹17,402.14 crore from ₹15,293.23 crore. Net profit, however, declined to ₹882.34 crore from ₹1,029.25 crore. Published - November 10, 2026 05:19 pm IST