MRF's Net Profit Falls. (AI Generated Image)
\n\nTyre major MRF Ltd reported a 28% year-on-year decline in its standalone net profit to Rs 369 crore for the second quarter of the financial year 2026-27, compared with Rs 512 crore in the corresponding quarter last year. The decline in profitability came amid rising raw material costs, which weighed on the company's margins despite continued demand for its products.
\n\nThe increase in input costs has emerged as a key challenge for tyre manufacturers, with raw materials accounting for a significant share of overall production expenses. Higher costs can put pressure on operating margins, particularly when companies are unable to fully pass on the increase to consumers through price hikes.
\n\nCompany's revenue from operations rose by almost 18 per cent to Rs 8,524 crore, while total expenses grew by more than 22 per cent, driven largely by a rise in material costs related to war in the Middle East. Cost of materials consumed grew by about 44 per cent during the quarter.
\n\nIndian tyre makers faced higher raw material costs during the quarter as supply shortages and adverse weather in key producing countries kept natural rubber prices elevated, forcing companies to raise prices.
Original source: https://www.timesnownews.com/business-economy
