JK Tyre and CEAT released their Q2 FY26 results recently, and there are a multitude of things for investors to analyse. In this article, we will dive into the financial performance of both these tyre manufacturers.
JK Tyre & Industries
JK Tyre and Industries Limited is a worldwide tyre manufacturer with a global footprint in India, Mexico, and abroad. It produces a wide range of tyres for a wide range of applications, including trucks, buses, passenger vehicles, two/three wheelers, agricultural equipment, and industrial vehicles.
In addition to tyres, JK Tyres also produces retreaded tyres and runs a tyre care centre to provide service and repairs, pressure checks and management for fleets. Products are sold through a network of branded retail outlets, such as Steel Wheels, Xpress Wheels and Truck Wheels. JK Tyres manufactures its tyres through 11 manufacturing facilities with an overall capacity of over 3.5 crore tyres per annum.
The company has reported an operating revenue of Rs 4,011 crore in Q2 FY26, representing a 11 percent growth compared to Rs 3,622 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 4 percent from Rs 3,869 crore.
Regarding its profitability, it reported a net profit of Rs 227 crore in Q2 FY26, a staggering growth of 62 percent as compared to Rs 140 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 39 percent from Rs 163 crore.
As of Q2 FY26, the company derives 66 percent, 20 percent, and the remaining 14 percent of revenue through replacement, OEM, and exports respectively. And coming to its revenue mix by product line, a staggering 50 percent is contributed by the commercial vehicle segment (Truck & Bus), followed by 32 percent with the Passenger line radial segment, 4 percent from 2/3 wheelers and the remaining 14 percent from others.
CEAT
CEAT Limited is an Indian tyre company that is a major producer of tyres, tubes, and flaps for two/three wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles. Ceat manufactures its tyres through six plants with an overall capacity of 1.4 lakh tyres per day.
CEAT has reported an operating revenue of Rs 3,773 crore in Q2 FY26, representing a 14 percent growth compared to Rs 3,305 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 7 percent from Rs 3,529 crore.
Regarding its profitability, it reported a net profit of Rs 186 crore in Q2 FY26, a growth of 54 percent as compared to Rs 121 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 66 percent from Rs 112 crore.
As of Q2 FY26, the company derives 52 percent, 26 percent, and the remaining 19 percent of revenue through replacement, OEM, and exports respectively. And coming to its revenue mix by product line, 29 percent is contributed by the commercial vehicle segment (Truck & Bus), followed by 28 percent with 2/3 wheelers, 21 percent from Passenger Car/Utility Vehicle, 15 percent from Off Highway and the remaining 7 percent from Light Commercial Vehicle/Others.
In conclusion, both JK Tyre and CEAT were good performers in Q2 FY26; however, their success was quite different. JK Tyre exhibited a more robust growth both in revenue and profit. Mainly, this was influenced by the company being the leader in the truck and bus tyre segment and a higher replacement demand. On the other hand, CEAT raised its profit margin by engaging in stricter cost control measures and a more balanced product mix of two-wheelers, cars, and off-highway tyres.
Written by Satyajeet Mukherjee
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