MRF Profit Surges 120% on Robust Demand, Declares Dividend

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AuthorAnanya Iyer|Published at:
MRF Profit Surges 120% on Robust Demand, Declares Dividend
Overview

Tyre maker MRF Ltd reported a more than two-fold surge in consolidated net profit to ₹692 crore for the third quarter ended December 2025. Revenue climbed 15% to ₹8,050 crore. The company announced a ₹3 per share interim dividend. Robust original equipment and replacement sales, boosted by GST rate reductions and a resilient rural economy, fueled the strong performance. Increased infrastructure spending and trade agreements are expected to support future growth.

MRF Ltd's net profit more than doubled, soaring to ₹692 crore in the third quarter ended December 2025, a significant leap from the ₹315 crore reported in the corresponding period last year.

Revenue Growth and Demand Drivers

Revenue for the quarter increased by 15%, reaching ₹8,050 crore compared to ₹7,000 crore in the prior year. This strong performance was attributed to buoyant demand across both original equipment (OE) and replacement sales. The reduction in Goods and Services Tax (GST) rates significantly stimulated consumer purchasing and subsequently boosted demand, a trend anticipated to persist into the fourth quarter.

The company also noted a positive impact from the revival in the rural economy, supported by favorable monsoon patterns. Original equipment manufacturers are expected to ramp up production as channel inventories have decreased, anticipating higher sales volumes in the final quarter of the fiscal year.

Policy Support and Export Outlook

Government initiatives, including increased infrastructure spending outlined in the recent budget, are poised to benefit the commercial vehicle segment and, by extension, the tyre industry. Furthermore, ongoing trade agreement negotiations with entities like the EU and the US signal promising export opportunities for MRF in the near future.

Dividend Announcement

In line with its positive financial results, the board of directors declared a second interim dividend of ₹3 per share for the financial year ending March 31, 2026. This distribution reflects the company's robust financial health and commitment to shareholder returns.

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