MRF Q1 Results: Profit falls despite higher other income, margin narrows

Shares of tyre manufacturer MRF Ltd. are looking to recover from the lows of the day, despite its June quarter net profit declining from last year and margins too, narrowing.Net profit for the quarter declined by 14% from last year to ₹484 crore from ₹563 crore. The net profit saw a decline despite a rise in other income, which rose to ₹125 crore from ₹83 crore last year.

Revenue for the quarter increased by 7% on a year-on-year basis to ₹7,560 crore from ₹7,078 crore earlier.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined 9% from the year-ago quarter to ₹1,034 crore, while margin narrowed by over 200 basis points to 13.7% from 16.1% last year.The June quarter is generally supposed to be a weak quarter for India’s tyre industry. MRF’s gross margins declined by 300 basis point during the quarter to 34.3% from 37.3% last year. This, despite raw material costs going up by 6% from last year to ₹4,597 crore.

MRF has not declared any dividend for its shareholders this time around.

Shares of MRF are recovering from the lows of the day, currently trading 0.7% lower at ₹1,41,550. The stock has declined 5% in the last one month but is holding on to gains of 10% so far in 2025.