Chennai: Leading tyre maker MRF saw its consolidated net profit decline marginally in the first quarter of FY27 as a sharp increase in raw material costs offset healthy demand and double-digit growth in revenue.Consolidated profit after tax stood at Rs 495 crore in the quarter ended June 30, 2026, compared with Rs 502 crore in the year-ago period. Profit before exceptional items and tax also declined to Rs 650 crore from Rs 672 crore.The decline in profitability came despite a strong topline performance. Revenue from operations rose 10% to Rs 8,415.5 crore from Rs 7,667 crore in Q1 FY26, supported by buoyant demand from both original equipment manufacturers (OEMs) and the replacement market.Demand from OEMs remained strong as vehicle sales across segments continued to grow, while replacement sales also held up well, reflecting robust demand for tyres.However, the improvement in revenue was more than offset by a sharp rise in input costs. Raw material consumption increased to Rs 5,854 crore from Rs 4,623 crore, pushing total expenses up to Rs 7,961 crore from Rs 7,132 crore a year earlier.MRF said raw material prices remained firm amid the continuing conflict in West Asia, putting pressure on margins. The company expects the impact of elevated input costs to continue.During the quarter, the tyre maker responded with price increases and cost-management measures, which helped partially cushion the rise in input costs.On a standalone basis, MRF’s profit after tax declined to Rs 474 crore from Rs 484 crore, while revenue from operations increased to Rs 8,292 crore from Rs 7,560 crore.
