JK Tyre to Invest Rs 4,900 Crore in Capex to Boost Production Capacity by 24% by FY30.

JK Tyre & Industries Ltd has announced an ambitious capital expenditure plan amounting to Rs 4,900 crore for the fiscal years leading up to FY30, in a strategic effort to expand its production capacity significantly. As India’s third-largest tyre manufacturer by revenue, the company aims to boost its total capacity by nearly 25%, reflecting a strong belief in sustained demand across both passenger and commercial vehicle segments. Chairman and Managing Director Raghupati Singhania emphasized during a media briefing that this expansion is essential for positioning the company to meet anticipated future market demands.

The financial performance of JK Tyre for both the March quarter and FY26 demonstrates impressive growth, with net profit soaring 94% to Rs 199 crore in the recent quarter and a 52% increase to Rs 786 crore for the fiscal year. Consolidated revenue also reflects this positive trend, rising 12% to Rs 4,233 crore for the quarter and reaching a record Rs 16,384 crore for the full year. Furthermore, EBITDA saw growth of 42% and 25%, respectively, indicating strong operational efficiency and robust margins, despite challenges posed by rising raw material costs.

Looking ahead, the company’s expansion will emphasize the Chennai facility, where approximately 90% of the planned investment will be directed towards enhancing passenger car radial (PCR) capacity. In addition, the company is already executing a Rs 1,130 crore expansion project aimed at both PCR and truck-bus radial (TBR) tyres, anticipated to become operational by December. Although JK Tyre is navigating inflationary pressures from raw material prices—exacerbated by geopolitical tensions—Singhania remains optimistic about future demand and anticipates that premium tyres, currently 35% of the product mix, will surpass 50% post-expansion efforts.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)