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When a stock costs more than some apartments in Mumbai, every quarterly number draws attention. MRF’s Q1 results are in, and they’re a reminder that even India’s most expensive stock can’t escape rising costs. Revenue is up, but profit has rolled back, leaving investors wondering if this is just a speed bump or a sign of a longer detour.
About the company
MRF (Madras Rubber Factory) is India’s tyre kingpin, supplying everything from scooter tyres to truck radials. Over the decades, it’s diversified into paints, toys and motorsport sponsorship, but tyres remain its cash cow. Its shares are among the priciest in the world on a per-share basis, making every earnings season a spectacle for the markets.
MRF Q1 FY26 results scorecard
| Metric | Q1 FY26 | Q1 FY25 | YoY change |
|---|---|---|---|
| Revenue from operations (Rs crore) | 7,675.69 | 7,196.45 | 6.65 per cent |
| EBITDA (Rs crore) | 1,072 | 1,160.60 | - 7.65 per cent |
| EBITDA margin (%) | 13.96 | 16.11 | - 215 bps |
| Net profit (Rs crore) | 500.47 | 571.02 | - 12.33 per cent |
| Operating margin (%) | 8.37 | 10.61 | - 224 bps |
What’s happening?
The top line saw a healthy 6.7 per cent bump, driven by steady domestic demand and replacement market sales. However, rising raw material costs, particularly for rubber and petrochemicals, as well as higher employee expenses, dragged down margins. EBITDA slipped nearly 8 per cent, and PAT fell over 12 per cent YoY.
Why do the numbers matter?
For long-term investors, the drop in margins is worth watching, but MRF’s low leverage and strong brand position provide a cushion. If raw material prices ease in the coming quarters, the profit engine could accelerate again. But with valuations already rich, there’s little room for earnings disappointment.
Our take
Think of this quarter as a reminder that even premium brands can hit potholes when costs spike. If you’re already holding MRF, the balance sheet strength means you don’t need to slam the brakes just yet, but keep an eye on input costs and pricing power. New entrants might want to wait for better margin visibility before buying at current valuations.
Disclaimer: This article was crafted with the aid of artificial intelligence and meticulously reviewed and edited by our human experts to ensure accuracy and provide valuable insights. It’s intended for informational purposes only. We encourage you to conduct your own thorough research before making any investment decisions.
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