MRF Q1 profit drops 1.3% on input costs
MRF Limited reported a 1.3% decline in quarterly net profit despite a 9.7% increase in revenue. The company cited rising input costs due to Middle East conflicts as the primary factor impacting margins.
Why it matters
The report illustrates how global geopolitical instability directly affects the profitability of major manufacturing firms in emerging markets.
MRF Limited reported a consolidated total income of ₹8,610.56 crore for the quarter ended June 30, 2026, up from ₹7,804.23 crore in the corresponding quarter last year. Revenue from operations grew 9.7% year-on-year and 4.8% over the previous quarter.
However, consolidated net profit came in at ₹495.35 crore, down 1.3% from ₹501.82 crore a year earlier, and down 29.5% from ₹702.25 crore in the preceding quarter ended March 2026. Consolidated profit before tax stood at ₹649.69 crore, compared with ₹671.83 crore in the year-ago quarter.
In a press release, the company said it delivered a resilient operating performance in the quarter on the back of good demand for its products. Demand from OE manufacturers was buoyant as vehicle sales across segments witnessed strong growth, while replacement sales also remained healthy. However, higher input costs impacted profitability during the quarter.
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