MRF’s Q1 standalone net drops by 14%

Leading tyre maker MRF has reported a 14 per cent drop in its standalone net profit to ₹484 crore for the quarter ended June 30, 2025, compared with ₹563 crore in the year-ago period, on account of higher input costs.

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Its profit before exceptional items and tax stood at ₹651 crore as against ₹751 crore in the June 2024 quarter.

Revenue from operations grew 7 per cent to ₹7,560 crore in Q1 of this fiscal, when compared with ₹7,078 crore in the year-ago period.

The cost of raw materials consumed was higher at ₹4,597 crore, against ₹4,319 crore a year earlier. Total expenses rose to ₹7,035 crore from ₹6,410 crore in the June 2023 quarter.

On a consolidated basis, profit after tax was lower at ₹500 crore in Q1 of this fiscal, compared with ₹571 crore in the June 2024 quarter, while revenue from operations increased to ₹7,676 crore from ₹7,196 crore.

Despite the increase in total income, profits for the quarter declined due to higher input costs, the company said in a statement.

The first quarter of the financial year normally sees an uptick in vehicle demand, boosting sales to OEMs along with replacement demand. However, April 2025 began with a tariff issue, followed by a war in May and early monsoons, which dampened market sentiment. OE vehicle sales across categories were negative or flat, except for the farm segment, which was unaffected by these disruptions. Despite such conditions, total income grew 7 per cent year-on-year and 9 per cent over the previous quarter, it added.

The company’s net worth increased to ₹19,000 crore as of June 30, 2025, from ₹17,277 crore a year ago.

On Tuesday, MRF’s stock closed at ₹1,40,562 per share on the BSE, down 1.03 per cent.

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