JK Tyre Achieves Prestigious ESG 1+ Rating for the Third Consecutive Year, Reports Strong Q2 Profit Growth

JK Tyre & Industries Ltd has once again demonstrated its leadership by securing the esteemed CareEdge ESG 1+ rating for the third consecutive year. This prestigious recognition underscores the company’s unwavering commitment to environmental, social, and governance (ESG) principles, placing it at the forefront of sustainability in the automotive industry. The high ESG score of 81.2 surpasses industry standards and reinforces JK Tyre's position as a role model in responsible business practices.

Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre, expressed his pride in the achievement, emphasizing that the company’s commitment to sustainable growth, ethical business practices, and long-term value creation is a driving force behind its success. The CareEdge ESG 1+ rating highlights the company's proactive carbon and energy management, effective policies, and substantial investments in renewable energy and decarbonization technologies.

This third consecutive year of top-tier ESG performance further strengthens JK Tyre’s reputation as a sustainability leader, positioning the company to continue its leadership in both profitability and responsible growth.

In addition to its sustainability achievements, JK Tyre has also posted impressive financial results for the second quarter of FY’26, reporting a 54 per cent year-over-year surge in consolidated net profit. The robust performance is reflective of the company’s effective market strategies and operational efficiencies.

Key financial highlights for Q2 FY’26 include:

• Total Revenues: Rs. 4,026 Crore
• EBITDA: Rs. 536 Crore
• EBITDA Margin: 13.3 per cent
• Profit After Tax (PAT): Rs. 223 Crore (54 per cent YoY growth)

The significant profit jump was primarily driven by higher sales volumes, softening raw material costs, and improved operational efficiencies across the company. Domestic markets saw a 15% increase in volumes, driven by growth across all product segments. These results reflect the company's strong position in the tyre industry, with both domestic and international markets contributing to the growth.

The company’s growth in Q2 FY’26 has been supported by a robust domestic market performance and strong export resilience. JK Tyre saw a 15 per cent increase in domestic volumes, with demand rising across all product segments. On the export front, the company registered a 13 per cent increase in volumes, despite global uncertainties such as tariff rate changes in the US.

Dr. Singhania highlighted that this export growth is due to superior product quality, deeper market penetration, and the strategic diversification into new geographies. Additionally, JK Tyre’s subsidiaries, Cavendish in India and Tornel in Mexico, contributed significantly to the company’s overall performance, further reinforcing its global presence.

The company’s recent financial success and sustainability accolades build on a long legacy of leadership, innovation, and industry recognition. JK Tyre has been a pioneer in the Indian automotive sector, introducing India’s first radial tyres and "Smart Tyre" technology.

The company’s key strengths include:

• Global Rank: Among the top 20 tyre manufacturers worldwide
• Market Leadership: Leader in the Truck Bus Radial (TBR) segment, producing 30 million TBR tyres in 2024
• Innovation: Operates the "Raghupati Singhania Centre of Excellence" for cutting-edge research
• Scale: 11 manufacturing facilities with a combined annual production capacity of over 35 million tyres
• Brand Recognition: Six-time recipient of the Economic Times - Iconic Brand of the Year Award

These achievements reflect JK Tyre’s ability to scale its operations, innovate continuously, and maintain its leadership in both product offerings and sustainability.

JK Tyre’s performance in Q2 FY’26, coupled with its third consecutive ESG 1+ rating, showcases its unwavering commitment to both financial success and sustainable growth. The company’s strong market presence, ongoing innovation, and leadership in sustainability position it well for future growth. As Dr. Singhania emphasised, JK Tyre will continue to leverage innovation and sustainability to drive long-term value creation and operational resilience in the global market.

Disclaimer: The article is for informational purposes only and not investment advice.