JK Tyre expects to log double-digit revenue growth in the financial year 2026 after a not-so-robust FY25. The company’s revenue and PAT last fiscal were impacted by low demand from commercial vehicle players amid a sharp increase in raw material prices.
“The tyre industry is expected to grow about 6-8% this year (FY26), which is equivalent to India’s GDP growth rate, and we are targeting a double-digit growth for us. There are ample opportunities available in the domestic and export markets. We are also expanding our capacity, and we are confident of mobilizing this capacity,” said Sanjeev Aggarwal, CFO of JK Tyre.
JK Tyre, a leading tyre supplier to CV manufacturers, expects a recovery in demand from OEMs in FY26. It also expects replacement demand to remain healthy and raw material prices to stabilise.
Anshuman Singhania, managing director of JK Tyre and Industries, said that the decline in FY25 performance was primarily due to rising raw material prices. “Last year alone, there was an approximately 10% increase in raw material costs, particularly affecting truck radial tyres. Unfortunately, this cost inflation could not be fully passed on to customers, as OEM demand remained subdued and they were not keen on picking up large volumes,” stated Singhania.