MRF October-December Net Profit More than Doubles to ₹6.92 Billion; Board Declares ₹3 Dividend

MRF Limited reported a consolidated net profit of ₹6.92 billion for October-December. This compares to a net profit of ₹3.15 billion recorded in the corresponding quarter of the previous year.

The Chennai-based tyre manufacturer's consolidated total income rose 15% to ₹81.75 billion for the third quarter. Profit before tax stood at ₹9.17 billion for the reporting period, compared to ₹4.24 billion in the same period a year ago.
The profit before tax figure accounts for an exceptional item of ₹770 million related to the new Labour Code. The provision for tax for the quarter amounted to ₹2.25 billion.

According to the statement, both Original Equipment (OE) and replacement sales were robust during the third quarter due to an increase in demand following a reduction in Goods and Services Tax (GST) rates. The company also noted that the rural economy picked up against the background of "good and widespread monsoons".

MRF expects the demand buoyancy arising from GST rate reductions to continue in the fourth quarter. The release stated that Original Equipment Manufacturers (OEMs) are expected to increase production levels due to higher anticipated sales in the last quarter and reduced channel inventory.

The company noted that the government's budget announcement of increased spending on infrastructure "augurs well" for commercial vehicles and consequently for the tyre industry. Furthermore, trade agreements being finalised by the government with various countries, including the European Union and the United States, will open up export opportunities in the future, MRF said.

The Board of Directors declared a second interim dividend of ₹3 per share (30%) on a face value of ₹10 for the financial year ending March 31, 2026.