According to the latest quarterly results, MRF reported a net profit of ₹479.25 crore for Q1 FY2027, representing a 6.52% year-on-year decline from the ₹512.67 crore recorded in the corresponding quarter of the previous financial year. Despite the profit decline, the company demonstrated strong revenue growth with revenue from operations reaching ₹8,415.50 crore, marking a 10% YoY increase from ₹7,675.64 crore in Q1 FY2026. However, profitability was significantly impacted by margin compression as EBITDA fell 7.46% YoY to ₹990.63 crore and EBITDA margins contracted to 11.77% from 13.95% in the previous year.
The company's financial performance shows a mixed picture with strong top-line growth offset by margin compression. MRF's total expenses rose sharply to ₹7,961 crore compared to ₹7,132 crore in the same period last year, with cost of materials consumed at ₹5,584 crore, up ₹961 crore from ₹4,623 crore in Q1 FY2026. This significant increase in material costs weighed heavily on profitability, resulting in the EBITDA margin contraction and ultimately impacting the company's bottom line performance despite the double-digit revenue growth.
Following the results announcement, MRF shares fell 3%, or ₹4,280, to trade at ₹1,29,570 per share. The stock has been under pressure, down 14% since the beginning of the year despite maintaining strong long-term performance with gains of around 65% over the past five years. The company has not declared any dividend for the quarter under review, reflecting the challenging operating environment and margin pressures that impacted profitability despite revenue growth.
Alongside the quarterly results, MRF announced significant management restructuring with the appointment of Prasanth Puliakottu as Senior General Manager - ITS and Head of Information Technology Services, and Santhosh Mathew as Senior General Manager - HRS and Head of Human Resources & Services, effective from August 11, 2026. The company's earnings per share (EPS) stood at ₹1,167.97 in Q1FY27, compared with ₹1,183.22 in Q1FY26 and ₹1,655.80 in Q4FY26. For the full financial year FY26, EPS was ₹5,720.39, showing the impact of the current quarter's margin pressures on overall earnings performance.
