MRF Ltd Q2 Results: Profit Soars 12%, Dividend Declared! Investors Cheer?

Author

Simar Singh | Whalesbook News Team

Detailed Coverage:

MRF Ltd has announced its financial results for the second quarter of fiscal year 2025-26, reporting a solid performance. The consolidated net profit saw a substantial 12 per cent increase, reaching ₹526 crore, up from ₹471 crore in the same quarter last year. Revenue also climbed by a healthy 7 per cent to ₹7,379 crore, compared to ₹6,881 crore in the prior year. The company cited the softening of raw material prices as a key factor contributing to improved profitability. Despite typical monsoon-related sales slowdowns, MRF Ltd achieved strong double-digit growth in Original Equipment (OE) sales and continued to perform well in exports, even amidst tariff challenges. While a recent GST reduction temporarily affected replacement sales, MRF Ltd anticipates this change will be beneficial in the upcoming quarters. Furthermore, the Board of Directors approved an interim dividend of ₹3 per share (30 per cent) for the fiscal year ending March 31, 2026. The company's stock closed at ₹1,57,450 on the NSE on November 14, 2025, down by ₹865.

Impact This financial update presents a positive outlook for MRF Ltd. The consistent profit and revenue growth, combined with the declaration of an interim dividend, indicate strong operational efficiency and financial stability, which are favorable signals for investors. While the stock experienced a minor decline on the reporting day, the underlying business fundamentals appear robust, potentially boosting investor confidence and interest in the stock. Rating: 7/10.

Difficult terms Consolidated net profit: The total net earnings of a company after accounting for the profits and losses of all its subsidiaries. Revenue: The total amount of income generated by the sale of goods or services related to the company's primary operations. OE sales (Original Equipment sales): Tyres sold directly to vehicle manufacturers to be fitted as original equipment in new vehicles. GST: Goods and Services Tax, a unified indirect tax system applied to the supply of goods and services. Interim dividend: A dividend paid out to shareholders during the company's financial year, before the final annual dividend is declared.