MRF Ltd. delivered exceptional operating performance for Q3FY26, with the stock surging as much as 9% to ₹1,46,545 following the results announced on Friday. According to reports from Zee Business, the tyre maker's consolidated net profit jumped 119% year-on-year to ₹692 crore from ₹315.46 crore in the corresponding quarter last year. On a sequential basis, profit increased 31.6% from ₹525.64 crore reported in the September quarter. The company's net profit margin nearly doubled to 8.46% during the quarter, compared with 4.44% in Q3FY25, indicative of better operating leverage and favourable demand conditions.
The company's revenue performance remained robust, with revenue from operations rising 15% year-on-year to ₹8,050.43 crore in Q3FY26, from ₹7,000.82 crore a year ago. As reported by Zee Business, on a quarter-on-quarter basis, revenue increased 9.1% from ₹7,378.72 crore in Q2FY26. According to Reuters, the company's revenue continued to track the broader momentum in automobile sales, with overall auto sales growing 17.6% in Q3FY26, led by a 20.6% rise in passenger vehicle sales, while two-wheeler sales increased nearly 17%, supporting tyre demand across both OEM and replacement segments.
The company's profitability showed remarkable improvement, with profitability more than doubling from last year to ₹692 crore from ₹315.46 crore last year. As reported by Zee Business, this growth in profitability occurred despite a one-time impact of ₹77.2 crore due to higher gratuity and leave liabilities following the implementation of new labour codes. The company's margins also saw an expansion by nearly 450 basis points to 17.4% from last year, demonstrating strong operational efficiency improvements. According to Zee Business, the strong earnings performance was majorly due to sharp expansion in margins, with the company benefiting from better operating leverage and favourable demand conditions.
According to reports from Zee Business, MRF announced a second interim dividend of ₹3 per equity share, equivalent to 30%, for the financial year ended March 2026. The company has fixed February 13, 2026, as the record date to determine shareholders eligible for the dividend. Following the earnings announcement, shares of MRF jumped 8.6% to ₹1,46,545 apiece on the BSE, as reported by Zee Business. The payout is scheduled to be made on or after February 27, 2026. This dividend declaration reflects the company's strong cash generation capabilities and commitment to returning value to shareholders during the quarter, with the results reinforcing confidence in MRF's ability to protect margins and generate strong cash flows even in a volatile cost environment.
