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Informist, Monday, Nov. 10, 2025

By Gopika Balasubramanium

MUMBAI – Robust growth in sales and reduced input costs are expected to boost tyre-maker MRF Ltd.'s bottom line for the September quarter. The company's top line growth is expected to be driven by strong demand from automobile companies, especially from two-wheeler makers and commercial vehicle makers, even as demand from the replacement segment was muted. The tyre-maker will declare its Jul-Sept earnings Friday.

Kotak Securities Ltd. sees the company's net profit for the reporting quarter rising over 13% on year to INR 5.16 billion, the highest bottom line projection among the three brokerage reports available with Informist. The lowest estimate of INR 4.70 billion is from Anand Rathi Share and Stock Brokers Ltd., which projects an over 3% on-year rise.

For the latest quarter, Motilal Oswal Financial Services Ltd. expects the company's revenue from operations to rise 12% on year to INR 75.72 billion, which is the highest of the three estimates available. This growth was likely on the back of a low base and a rise in demand from automobile manufacturers, the brokerage said. Kotak forecast a 6% on-year rise in the company's sales at INR 71.66 billion in Jul-Sept.

Kotak expects the revenue growth to improve on the back of an uptick in volumes of two-wheeler and commercial vehicles. The volume growth in the replacement segment was muted as customers postponed purchases to avail the benefit of the recent cut in the goods and services tax, the broking firm said.

The forecasts for the company's earnings before interest, tax, depreciation and amortisation are in a very thin range of INR 10.75 billion–INR 10.77 billion. Motilal Oswal expects the company's EBITDA margin to fall 20 basis points on year to 14.2%, while Kotak expects the metric to increase 60 bps on year to 15% on reduced input costs.

At 1244 IST, shares of MRF traded slightly lower at INR 158,550 on the National Stock Exchange. The stock was up 13% since the company released its June quarter results on Aug. 12. MRF had reported a net profit of INR 4.84 billion for the June quarter on revenues of INR 75.60 billion.

Of the four brokerage reports on MRF available with Informist, one has a "buy" recommendation on the stock with a target price of INR 170,000. The other three brokerages have a "sell" rating on the stock with a target price ranging between INR 113,397 and INR 120,000.

Following are the Jul-Sept earnings estimates for MRF Ltd. based on reports from three brokerage firms in descending order of net profit estimate in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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