More Stories

Informist, Thursday, Feb. 5, 2026

By Gopika Balasubramanium

MUMBAI – Tyre-maker MRF Ltd. is expected to post strong earnings for the December quarter, buoyed by an uptick in demand from automobile companies, traction in replacement segment, and robust exports. Most brokerages expects the tyre company to post double-digit growth in top line owing to a robust increase in volume. The company will declare its December quarter earnings on Friday.

The Chennai-based company's December quarter bottom line is expected to double on year, with expectations of 82-145% growth, according to estimates from three brokerages. If the company meets this profit estimate, the on-year rise would be the highest in eight quarters. 

Elara Securities (India) Pvt. Ltd. expects the company's net profit to more than double to INR 7.5 billion, which is the highest projection among the three brokerages. Both Kotak Securities Ltd. and Motilal Oswal Financial Services Ltd. see an 82% growth in bottom line to INR 5.6 billion. Sequentially, the bottom line is seen rising 9-47%. Low raw material prices are likely to support MRF's profitability in the latest quarter, according to analysts.

Brokerages are positive tyre companies will benefit from the lower goods and services tax rate, which led to a surge in sales of vehicles, bringing second-order benefits for these companies. Tyre manufacturers are set to post a healthy performance in Oct-Dec, led by stronger automobile and replacement demand and softer natural rubber prices, Nirmal Bang Equities said.

Elara Securities expects the company's December quarter revenue from operations to rise nearly 13% on year to INR 77.57 billion, which is the highest estimate. Kotak sees a 9% on-year rise in the company's revenue to INR 75.03 billion, the lowest estimate among the three. Double-digit on-year volume growth in the automobile segment and export volumes, and high single-digit rise in volumes in replacement segment, are seen driving MRF's revenue growth, Kotak said.

The company's earnings before interest, tax, depreciation, and amortisation estimates are in a thin range of INR 11.49 billion–INR 11.79 billion. Kotak and Motilal expect the company's EBITDA margin to improve 30 basis points on quarter to 15.3%. They expect the EBITDA margin to improve on account of operating leverage benefit and improved demand. Elara expects the margin to improve 20 basis points. In the trailing quarter the margin was 15% and in the year-ago quarter it was 11.6%. 

For the September quarter, MRF reported a net profit of INR 5.12 billion on revenues of INR 72.50 billion. The stock has declined 14% since the company released its results for the trailing quarter. Thursday, the company's shares ended 2% lower at INR 134,970 on the National Stock Exchange.

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, implying an upside of 26% from the current market price. The other three brokerages have a "sell" rating on the stock with a target price ranging between INR 115,000 and INR 118,721. This indicates a downside of 12-14% from Thursday's close.

Following are the Oct-Dec earnings estimates for MRF Ltd. from three brokerage firms in descending order of net profit estimate in INR billion:

End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.