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MRF's Net Profit Falls 28% On Higher Raw Material Costs; Declares Rs 3 Dividend
Sentiment: NeutralHigh Priority
What Happened?
MRF Ltd reported a 28% decline in net profit to Rs 369 crore for Q2 FY 2026-27, despite an 18% revenue increase to Rs 8,524 crore. The company declared an interim dividend of Rs 3 per share.
Key points
- MRF's standalone net profit fell to Rs 369 crore from Rs 512 crore year-on-year.
- Revenue from operations increased by 18% to Rs 8,524 crore.
- Total expenses rose over 22%, primarily due to higher raw material costs.
- Material costs surged by about 44% during the quarter.
- The company declared an interim dividend of Rs 3 per share.
- The record date for the dividend payment is November 17, 2026.
Key insights
- The increase in raw material costs could pressure MRF's future profitability.
- Continued demand for tyres may help stabilize revenue despite rising costs.
- The interim dividend reflects MRF's commitment to returning value to shareholders.
Why it matters
The decline in profit highlights the challenges faced by tyre manufacturers due to rising raw material costs.
Entities
MRF· CompanySuzuki· Brand
Source
Times Now
