More tyres sold, less earnings retained: JK Tyre's Q1 squeeze
JK Tyre's Q1 FY27 consolidated revenue rose 2% year on year to about Rs 3,946 crore. India revenue increased about 14% and domestic volume grew roughly 25%, including about 42% growth in OEM volume. The domestic business therefore delivered a clear physical-demand gain. The first constraint was the raw-material basket.
Input costs rose about 20% sequentially amid West Asia-related disruption and shipping constraints. JK Tyre had taken cumulative FY27 price increases of about 11%, including roughly 5% in Q1, and planned another 5-6%; OEM pass-through typically carries a lag. India and Mexico moved in opposite directions. That growth did not convert into group earnings.
A 25% volume gain would normally strengthen fixed-cost absorption; here, the input shock overwhelmed it. JK Tyre's resolution test is realised pricing plus stable production in Mexico.
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