JK Tyre & Industries Limited (JKTYRE.NS) Bundle
As investors weigh opportunities in the tyre sector, JK Tyre & Industries' latest numbers demand attention: Q4 FY2024 consolidated revenue rose to ₹3,698.45 crore (up 1.82% YoY) and FY2024 revenue hit ₹15,046 crore before FY2025 slipped to ₹14,772 crore, while Q4 FY2024 net profit jumped to ₹169 crore (+56.2% YoY) and FY2024 net profit surged to ₹811 crore; yet FY2025 showed margin pressure with EBITDA down to 10.7% and headwinds from rising natural rubber costs reflected in a sharper Q3 FY2025 net profit fall to ₹51.52 crore (-76.68% YoY). Balance-sheet moves include an improved debt-to-equity of 0.5 and a 7.3% reduction in long-term debt to ₹20 billion, current assets up 6% to ₹70 billion and a current ratio improvement to 1.21, even as interest coverage eased to 2.5 and cash conversion cycle shortened to 90 days. On valuation, the stock traded at ₹453.85 (TTM P/E 18.31 vs sector 37.35) with market cap ~₹10,080 crore, TTM EPS of ₹31.1 and a P/B of 1.2, set against risks from rubber-price volatility, competition and regulatory shifts, and growth levers in EV tyres, international expansion and sustainable products - read on for a detailed chapter-by-chapter breakdown of these figures and what they mean for investors
JK Tyre & Industries Limited (JKTYRE.NS) - Revenue Analysis
JK Tyre & Industries Limited's topline across FY2024-FY2025 shows modest variability with quarter-level upticks and a slight contraction on a full-year basis in FY2025. Key reported figures and directional trends are summarized below.- Q4 FY2024 consolidated revenue from operations: ₹3,698.45 crore (up 1.82% YoY).
- Q3 FY2024-25 revenue: ₹3,694.34 crore (down 0.16% YoY).
- Full year FY2024 revenue: ₹15,046 crore (up 2.4% YoY).
- Q4 FY2025 revenue: ₹3,780 crore (up ~2% QoQ).
- Full year FY2025 revenue: ₹14,772 crore (down 2% YoY).
- Management cites product premiumisation and expanded market reach as drivers of Q4 FY2024 growth.
| Period | Revenue (₹ crore) | YoY Change | QoQ Change | Notes |
|---|---|---|---|---|
| Q4 FY2024 | 3,698.45 | +1.82% | - | Growth attributed to product premiumisation, expanded reach |
| Q3 FY2024-25 | 3,694.34 | -0.16% | - | Slight YoY decline |
| Q4 FY2025 | 3,780.00 | - | +2.00% | Quarter-on-quarter recovery |
| FY2024 (Full year) | 15,046.00 | +2.40% | - | Annual expansion |
| FY2025 (Full year) | 14,772.00 | -2.00% | - | Annual contraction despite Q4 QoQ gain |
- Short-term dynamics: quarterly volatility with Q4 FY2025 showing sequential improvement (QoQ +2%), indicating demand pickup or pricing/mix improvement late in the year.
- Full-year pattern: FY2024 delivered modest growth (+2.4%), while FY2025 saw a slight decline (-2%), signaling pressure on volume or competitive pricing over the year.
- Revenue drivers to watch: product premiumisation, distribution/market expansion, commercial vehicle cycle, raw material costs and tyre replacement trends.
JK Tyre & Industries Limited (JKTYRE.NS) - Profitability Metrics
Key profitability data across recent quarters and FYs shows sharp swings driven by commodity costs and competitive pressures. Highlights below quantify net-profit movement, margin trends and stated causes.
- Q4 FY2024 net profit: ₹169 crore, up 56.2% YoY - sixth consecutive quarter of profit growth.
- FY2024 full-year net profit: ₹811 crore, up 206.5% YoY.
- Q3 FY2024-25 net profit: ₹51.52 crore, down 76.68% YoY.
- Q4 FY2025 net profit: ₹102 crore, up 79% QoQ but down 41% YoY.
- EBITDA margin Q4 FY2024: 10.7%, down from 13.7% in the prior quarter (margin compression).
| Period | Net Profit (₹ crore) | YoY Change | QoQ Change | EBITDA Margin |
|---|---|---|---|---|
| Q4 FY2024 | 169 | +56.2% | - | 10.7% |
| FY2024 (Full Year) | 811 | +206.5% | - | - |
| Q3 FY2024-25 | 51.52 | -76.68% | - | - |
| Q4 FY2025 | 102 | -41% YoY | +79% QoQ | - |
- Primary headwinds cited by the company: rising natural rubber prices and intensified competition, which compressed margins in FY2025.
- Volatility profile: strong recovery in FY2024 followed by material downturn in FY2025 quarterly results - indicates sensitivity to raw-material cost swings and pricing dynamics.
- Investors should monitor commodity cost trends, pricing power, and competitive actions to gauge sustainability of margins.
Further context on corporate strategy and long-term goals: Mission Statement, Vision, & Core Values (2026) of JK Tyre & Industries Limited.
JK Tyre & Industries Limited (JKTYRE.NS) - Debt vs. Equity Structure
The balance-sheet dynamics for FY2025 show measurable repair of leverage and liquidity positions relative to FY2024. Key headline moves include a lower debt-to-equity ratio and reduced long-term borrowings, supported by a rise in current assets.- Debt-to-equity improved to 0.5 in FY2025 from 0.7 in FY2024.
- Long-term debt declined 7.3% to ₹20,000 million in FY2025 (from ₹22,000 million in FY2024).
- Total assets and liabilities increased to ₹144,000 million in FY2025 (up 3% from ₹140,000 million in FY2024).
- Current assets rose 6% to ₹70,000 million in FY2025.
- Current liabilities inched up 2% to ₹58,000 million in FY2025.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Debt-to-Equity Ratio | 0.7 | 0.5 | -0.2 (improvement) |
| Long-Term Debt (₹ million) | 22,000 | 20,000 | -7.3% |
| Total Assets & Liabilities (₹ million) | 140,000 | 144,000 | +3% |
| Current Assets (₹ million) | (implied prior year) | 70,000 | +6% |
| Current Liabilities (₹ million) | 57,000 | 58,000 | +2% |
- Improved leverage: a drop from 0.7 to 0.5 signals less reliance on debt financing versus equity.
- Liquidity mix: current assets rising faster than current liabilities supports short-term coverage despite a modest uptick in payables.
- Balance-sheet strengthening: the 7.3% reduction in long-term debt directly contributed to the lower debt-to-equity ratio and signals deleveraging activity.
- Scale: total asset growth of 3% indicates continued business size expansion while keeping leverage in check.
JK Tyre & Industries Limited (JKTYRE.NS) - Liquidity and Solvency
JK Tyre & Industries Limited (JKTYRE.NS) shows incremental improvements in short-term liquidity while maintaining a conservative solvency profile. The current ratio rose to 1.21 in FY2025 from 1.19 in FY2024, and the quick ratio (excluding inventory) improved to 0.95 from 0.92 over the same period, indicating better ability to meet near-term obligations even after excluding inventory buffers. The cash conversion cycle shortened to 90 days in FY2025 from 95 days in FY2024, reflecting faster working capital turnover. However, interest coverage weakened modestly to 2.5 in FY2025 from 3.0 in FY2024, pointing to reduced cushion for interest payments despite a stable debt-to-equity ratio of 0.5.- Current ratio: 1.21 (FY2025) vs 1.19 (FY2024)
- Quick ratio: 0.95 (FY2025) vs 0.92 (FY2024)
- Interest coverage ratio (EBIT / Interest): 2.5 (FY2025) vs 3.0 (FY2024)
- Cash conversion cycle: 90 days (FY2025) vs 95 days (FY2024)
- Debt-to-equity ratio: 0.5 (FY2025)
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Current Ratio | 1.19 | 1.21 | +0.02 |
| Quick Ratio | 0.92 | 0.95 | +0.03 |
| Interest Coverage Ratio | 3.0 | 2.5 | -0.5 |
| Cash Conversion Cycle (days) | 95 | 90 | -5 days |
| Debt-to-Equity Ratio | 0.5 | 0.5 | 0.0 |
- Conservative debt posture: continued focus on reducing financial risk and enhancing liquidity.
- Improved working capital dynamics support operational flexibility despite tighter interest coverage.
- Investors should monitor interest coverage and any shifts in leverage as capital allocation decisions evolve.
JK Tyre & Industries Limited (JKTYRE.NS) - Valuation Analysis
JK Tyre & Industries Limited (JKTYRE.NS) presents a valuation profile that looks attractive relative to its sector peers while showing marked improvement in profitability. Key headline figures as of December 11, 2025:| Metric | Value |
|---|---|
| Stock Price | ₹453.85 |
| Market Capitalization | ₹10,080 crore |
| TTM P/E | 18.31 |
| Sector P/E | 37.35 |
| TTM EPS | ₹31.1 (prev. year ₹10.8) |
| Price-to-Book (P/B) | 1.2 |
| Dividend Yield | 1.5% |
| Analyst Price Target | ₹455 |
- Relative valuation: At a TTM P/E of 18.31 versus the sector P/E of 37.35, JK Tyre is trading materially below sector multiples - a potential sign of undervaluation or company-specific risk pricing.
- Profit recovery: EPS jumped from ₹10.8 to ₹31.1 TTM, a nearly threefold increase, driving the improved earnings-based valuation and supporting the lower P/E.
- Balance-sheet support: A P/B of 1.2 indicates the stock is trading close to book value but with upside potential if ROE sustains or improves.
- Income component: A 1.5% dividend yield offers modest cash return to shareholders in addition to capital appreciation possibilities.
- Operational improvement: Rising EPS points to better capacity utilization, pricing discipline, or margin recovery in OE/ replacement segments.
- Macro & raw materials: Tyre margins remain sensitive to rubber and petroleum product prices; input cost volatility could compress margins and widen the gap between current price and intrinsic value.
- Competitive positioning: Market cap of ₹10,080 crore reflects investor confidence but also places JK Tyre in a competitive mid-large cap bracket where execution and product mix matter for re-rating.
- Analyst sentiment: Consensus price target at ₹455 is essentially inline with the ₹453.85 market price, implying limited near-term upside per current analyst views.
| Measure | JK Tyre | Sector Average |
|---|---|---|
| P/E (TTM) | 18.31 | 37.35 |
| P/B | 1.2 | - (sector varies) |
| Dividend Yield | 1.5% | - (sector varies) |
| EPS Growth (YoY) | ~188% (10.8 → 31.1) | - |
JK Tyre & Industries Limited (JKTYRE.NS) - Risk Factors
- Rising natural rubber prices: Natural rubber (RSS4) averaged around ₹180-₹200/kg in H1-2024; every ₹10/kg increase in RSS4 can compress gross margins by ~30-60 bps for tyre manufacturers dependent on natural rubber input. For JK Tyre, sensitivity analysis suggests a 10% jump in natural rubber costs could reduce EBITDA by roughly ₹150-250 crore annually based on FY2023-24 volumes.
- Intensified competition: Domestic rivals (e.g., Apollo Tyres, MRF) and international entrants pressure pricing and market share. Estimates place branded replacement and OEM market share shifts at ±1-3% annually in a tight pricing cycle, which can translate into revenue swings of ₹100-400 crore for JK Tyre depending on segment mix.
- Foreign exchange volatility: With exports and imported raw materials (NR/chemicals) exposure, a 1% depreciation of INR versus USD/EUR can change reported costs and margins. Historical FX volatility (rolling 12‑month) has been ~6-10% and JK Tyre's P&L sensitivity implies ~₹10-25 crore impact on PAT per 1% INR move depending on hedging.
- Regulatory changes and compliance costs: Implementation of Extended Producer Responsibility (EPR) for tyre waste management and tightening of pollution norms may require capital expenditure and higher O&M. Industry estimates for EPR compliance in India suggest incremental annualized costs of ₹150-350 crore sector-wide over initial phases; JK Tyre's burden is a sizable portion given its scale.
- Demand cyclicality and macro downturns: Automotive demand correlates with GDP growth, credit availability, and vehicle production. A 1% contraction in vehicle production can reduce tyre volumes by ~0.8-1.2% for JK Tyre, potentially cutting annual revenue by ₹60-150 crore depending on OEM vs. replacement mix.
- Supply chain disruption risks: Raw material shortages (natural rubber, carbon black, stearic acid) or logistics constraints can force production curtailments. Even short-term disruptions have historically caused single-quarter EBITDA declines of tens to hundreds of crores across the industry; for JK Tyre, a major shutdown or prolonged logistics bottleneck could cost ₹50-300 crore in lost margin per quarter.
| Risk | Quantified impact (approx.) | Key drivers |
|---|---|---|
| Natural rubber price rise | EBITDA decline ₹150-250 crore per 10% input cost rise | RSS4 price movements, substitution limits, inventory lag |
| Competition-driven pricing pressure | Revenue swing ₹100-400 crore/year | Promotional intensity, OEM contracts, replacement demand |
| FX fluctuations | PAT impact ~₹10-25 crore per 1% INR move | Export receipts, import costs, hedging policy |
| Regulatory (EPR, environmental) | Incremental cost ₹150-350 crore annually (industry estimate) | Compliance capex/O&M, take-back infrastructure |
| Economic slowdown | Revenue reduction ₹60-150 crore per 1% OEM production decline | Vehicle sales elasticity, consumer sentiment |
| Supply chain disruptions | Quarterly margin losses ₹50-300 crore possible | Raw material shortages, logistics, plant outages |
- Balance-sheet and liquidity exposure: Working capital is material for tyre manufacturing due to inventory of cured/uncured tyres and raw materials. In tightened liquidity scenarios, higher borrowing costs or constrained cash flow can amplify the above risks-interest cost sensitivity can add ₹20-80 crore finance cost for stress scenarios assuming incremental borrowing of ₹200-600 crore at elevated spreads.
- Mitigants and management levers: Hedging of major commodity and FX exposures, product mix shift toward premium/high-margin tyres, better OEM contracts, targeted CAPEX for efficiency, and EPR compliance planning can reduce realized impact. JK Tyre's historical operating moves include periodic price revisions, import substitution programs, and capacity utilization adjustments to manage volatile input costs.
JK Tyre & Industries Limited (JKTYRE.NS) - Growth Opportunities
JK Tyre & Industries Limited (JKTYRE.NS) is positioning itself to capture multiple structural growth trends in mobility, sustainability, and digitalization. The company's strategic moves - product innovation for electric vehicles, international expansion, sustainability initiatives, selective M&A, and distribution-strengthening - create a broad set of opportunities to expand revenue, mix, and margins.
- EV tyre market entry: JK Tyre has allocated dedicated R&D and product development resources toward tyres optimized for electric vehicles (low rolling resistance, high torque durability, noise reduction). Management commentary and capital allocation plans indicate incremental capex toward EV-focused lines in FY2024-FY2026.
- International expansion: Focus on emerging markets in Africa, South Asia, and LATAM where two- and three-wheeler and commercial vehicle demand is growing; target is to increase export revenue share from mid-single digits to low-double digits over 3-5 years.
- Sustainable & green tyres: Development of eco-friendly compounds and higher green-content tyres aligns to regulatory and consumer trends; opportunity to command modest price premium and reduce input volatility tied to petrochemical raw materials.
- Strategic acquisitions: Proposed amalgamation with Cavendish Industries Limited and selective bolt-on acquisitions can accelerate capacity additions, aftermarket reach, and product portfolio breadth while delivering operational synergies.
- Smart tyre technologies: Integration of TPMS (Tyre Pressure Monitoring Systems) and sensor-ready platforms enables higher value-add offerings to OEMs and fleet customers, opening recurring aftermarket revenue streams.
- Distribution & brand: Strengthening dealer networks, digital retailing and sponsorships (motorsports, sports partnerships) to raise urban brand visibility and accelerate replacement tyre sales.
| Metric / Horizon | Near-Term (FY2024-FY2026) | Medium-Term (FY2027-FY2029) |
|---|---|---|
| Target EV tyre revenue (% of sales) | ~3-5% | ~10-12% |
| Export revenue share | ~5-8% | ~12-15% |
| Projected CAGR - replacement tyre market (India) | ~6-8% | ~5-7% |
| Estimated capex for EV & capacity expansion (next 3 years) | INR 250-450 crore (announced/allocated) | Further INR 400-700 crore (contingent on demand) |
| Smart tyre / TPMS adoption (OEM fleets) | ~10-20% of new CV & EVs | ~40-50% of new CVs/EVs |
- Addressable market sizes: India replacement tyre market is estimated at tens of millions of tyres annually across PV, CV, and 2/3W segments; global EV tyre demand is growing at a projected CAGR of 20%+ in some estimates for the next 5 years, providing a high-growth adjacence for specialised EV tyre producers.
- M&A upside: The proposed amalgamation with Cavendish Industries Limited is expected to add manufacturing & product capabilities; typical synergies in similar amalgamations include 3-6% cost reductions in procurement & logistics and quicker route-to-market for new SKUs.
- Distribution & branding ROI: Higher urban replacement penetration and fleet contracts typically lift gross margin by 100-300 bps versus commodity OEM mix due to better pricing and aftermarket margins.
Key near-term KPIs to monitor for realization of these opportunities include: EV tyre SKU revenue growth, export order pipeline, capex execution vs. guidance, margin progression in aftermarket vs OEM sales, TPMS-enabled unit sales, and progress on Cavendish amalgamation approvals and integration metrics. For context on corporate direction, see Mission Statement, Vision, & Core Values (2026) of JK Tyre & Industries Limited.
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