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Informist, Monday, Aug. 11, 2025

By Gopika Balasubramanium

MUMBAI – MRF Ltd.'s top line is seen rising in low single digits for the June quarter, led by an uptick in its replacement segment and its sales to original equipment manufacturers. The bottom line on-year growth will likely be muted but may improve sequentially, according to analysts. The company will declare its June quarter earnings Tuesday.

For the latest quarter, Anand Rathi Share and Stock Brokers expects the company's net profit to rise 5.5% on year to INR 5.94 billion for the June quarter, which is the highest bottom line estimate among the three brokerage reports available with Informist.  Motilal Oswal Financial Services Ltd. has the lowest estimate at INR 5.08 billion, down nearly 10% on year. 

Anand Rathi sees the company's sales rising 9% on year to INR 77.08 billion, the highest of all three estimates. Motilal Oswal forecasted a 4% on-year rise in its revenue from operations at INR 73.61 billion in Apr-Jun, led by both replacement and automobile segments. This brokerage had the lowest revenue estimate among all three brokerages.  
 

In the March quarter, the company's net profit had surged 32% on year to INR 4.98 billion despite high input costs. Its sales had risen around 12% on year to INR 69.44 billion. 

For the June quarter, Kotak Securities sees the company's operating profit, defined as earnings before interest, tax, depreciation, and amortisation, at INR 11.67 billion during Apr-Jun, while Motilal Oswal sees it at INR 11.04 billion. 

Kotak Securities expects EBITDA margin to decline by 80 basis points on year to 15.3% in the June quarter, mainly on account of headwinds from raw material prices. However, sequentially, the margin is seen improving 30 bps. The brokerage firm said the company gained market share due to an aggressive pricing strategy in the June quarter. It also said the tyre market also benefitted from price increases taken over the last one year. 

Motilal Oswal sees the EBITDA margin to decline 110 bps on year to 15% for the latest quarter, but unchanged sequentially. "We expect EBITDA margin to remain largely stable QoQ at 15.1% as input costs are likely to be stable QoQ," it said.

At 1519 IST, shares of the company were at INR 142,060 on the National Stock Exchange, down 0.5%. The stock has risen just 1% from the closing price on May 7, when MRF declared its Jan-Mar earnings. Of the four brokerage reports on the company available with Informist, one has a 'buy' rating on the stock while the other three have a 'sell' rating on the stock with an average target price of INR 116,132. 

Following are the Apr-Jun earnings estimates for MRF based on reports from three brokerage firms in descending order of net profit estimate (in INR million):

End 

Edited by Tanima Banerjee

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