Tyremaker JK Tyre & Industries Ltd has announced that its subsidiary, JK Tornel, SA de CV, has entered into an agreement to sell 40,00,000 equity shares of Cavendish Industries Ltd (CIL) to SMMS Trust, a private trust registered under the Indian Trusts Act, 1882.
The transaction is valued at ₹130.64 crore for shares with a face value of ₹10 each. Despite the sale, Cavendish Industries Ltd will continue to remain a subsidiary of JK Tyre.
The sale pertains to JK Tornel’s stake in CIL, which contributed to JK Tyre’s consolidated revenue and net worth in the previous financial year.
The company expects the deal to be completed by November 30, 2025, after which JK Tornel will receive the full consideration.
Q2 Results
JK Tyre & Industries on October 27 reported a strong second-quarter performance, posting a 64% jump in net profit to ₹221 crore, compared to ₹135 crore in the same period last year.
Revenue for Q2 rose 10.8% to ₹4,011 crore, up from ₹3,621 crore, while EBITDA grew 23.8% to ₹521.5 crore against ₹421.2 crore a year earlier. The EBITDA margin improved to 13%, from 11.6% YoY, supported by higher sales volumes, softer raw material prices, and continued operational efficiencies.
The company noted that its international subsidiaries — Cavendish Industries (India) and Tornel (Mexico) — also posted strong improvements during the quarter, contributing meaningfully to the consolidated performance.
Shares of JK Tyre & Industries Ltd ended lower on Wednesday, November 19, by 1.93% at ₹447 on the NSE.
