MRF Ltd, India's largest tyre manufacturer with 10 factories and a single rubber-products segment, reports its Q2 FY 2026-2027 results into a quarter where vehicle retail demand hit record highs but input costs surged sharply. The print will speak to two things: how much of the natural rubber and crude-driven cost escalation (RSS 4 from a ₹253.21/kg Apr-Jun average to ₹300/kg by early November) hit margins, and whether price increases and cost management cushioned the compression management flagged in Q1.
| Results date | November 10, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 8,291.56 Cr (standalone, Q1 FY27, +9.67% YoY) |
| Previous quarter PAT | Rs. 474.37 Cr (standalone, Q1 FY27, -2.04% YoY) |
| Market cap | Rs. 53,415.18 Cr |
| CMP | Rs. 125,920 |
As per the board intimation dated 2 Nov 2026 (letter ref. 071/SH/SE/BOARD/NOVEMBER-2026/1), the Board of Directors will meet on 10 November 2026 to approve the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026, and to consider declaration of Interim Dividend, if any. The record date for the dividend, if declared, is 17 November 2026.
The board will consider an interim dividend at its 10 November 2026 meeting, with a record date of 17 November 2026. In FY26, MRF paid two interim dividends of Rs. 3/- each and a final dividend of Rs. 229/- per share, totalling Rs. 235/- per share. The trading window remained closed from 1 October to 12 November 2026 (both days inclusive).
The dominant question for MRF's Q2 FY27 print is margin: domestic RSS 4 natural rubber rose from a Rs. 253.21/kg Apr-Jun average to Rs. 279.73/kg in July and Rs. 300/kg by 4 November, while the Indian crude basket climbed from $82.04 in July to $100.75 in September, and the company carries Rs. 4,710.25 Cr of natural rubber exposure with NIL hedged through commodity derivatives.
Management's Q1 FY27 statement that "the impact of higher costs on margins is expected to continue" still holds and, on the rubber and crude path, intensifies for Q2; standalone PAT margin had already slipped to 5.72% in Q1 FY27 from 8.60% in Q4 FY26.
Demand, by contrast, was exceptionally strong through the quarter: FADA retail printed the best-ever July, August and September in series, with CV retail crossing 1 lakh units in a September for the first time (+37.62% YoY), validating that the truck/CV call of a Q1 surge was exceeded on retail demand. The tractor-moderation call was validated, with August tractor retail up just 0.84% YoY on a roughly 13% rainfall deficit and ICRA seeing FY27 tractor wholesale growth of only 1-4%.
On exports, the EU's definitive anti-dumping duty on Chinese tyres effective 6 July 2026 is a supportive datapoint for the "strong growth trajectory" management guided for FY2026-27, though Gulf-bound freight rose 27.7% MoM in September with the Hormuz closure in its 250th day. The call will likely cover the margin bridge — the quantum of MRF's own price increases and cost actions against the rubber and crude moves — and how much of the Rs. 5,416.82 Cr inventory stock (as of 31 March 2026) was bought at pre-run-up prices.
Margin trajectory vs input costs: The quarter's dominant swing factor is the cost line, with every driver moving against the company during Jul-Sep.
Inventory revaluation on an unhedged rubber book: How much the low-cost stock cushions the squeeze matters given nil derivative hedging.
Demand mix vs guidance: Retail vehicle demand beat management's calls; the farm segment is the laggard.
Interim dividend and corporate actions: The board considers an interim dividend alongside the results.
Litigation and balance sheet updates: Two pending legal matters and continued deleveraging frame the balance-sheet discussion.
Raw material prices remain firm due to the ongoing Middle East conflict — domestic RSS 4 natural rubber averaged Rs. 253.21/kg in Apr-Jun FY27 and reached Rs. 300/kg by 4 November, while the Indian crude basket averaged $100.75 in September. Management said price increases and cost management measures were implemented to partially offset cost increases, and that "the impact of higher costs on margins is expected to continue".
Standalone revenue rose 9.67% YoY to Rs. 8,291.56 Cr, but standalone PAT fell 2.04% YoY to Rs. 474.37 Cr, with consolidated PAT at Rs. 495.35 Cr (-1.29% YoY). Management attributed the margin pressure to higher input costs, partially offset by price increases and cost management.
Yes — standalone revenue grew 9.67% YoY in Q1 FY27 and consolidated revenue grew 10.64% in FY26 to Rs. 31,149.01 Cr, crossing the Rs. 30,000 Cr sales milestone. Automobile Tyres, the dominant product line, grew 11.27% YoY in FY26 with an 11% increase in tyre sales value and further consolidated market shares in replacement and OE segments.
The board meets on 10 November 2026 and will consider declaration of an Interim Dividend, if any, with a record date of 17 November 2026. In FY26, MRF's total dividend was Rs. 235/- per share.
A rectification order dated 30.09.2026 cut the FY2014-15 CST demand by 60.46%, from Rs. 91.53 Cr to Rs. 36.19 Cr. MRF is examining the order and will decide whether to challenge the residual demand; the final outcome remains uncertain.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.