MRF Ltd (MRF)

Automobile and Auto Components · Tyres · NSE · Updated 2 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹1,32,353.6 ↓ 14.02% (1Y)

🎯 Key Takeaways

  • MRF Ltd is in a mature growth phase with stable profitability and modest top-line expansion, characterized by consistent revenue growth and disciplined capital allocation. Management has demonstrated operational continuity through leadership appointments and strong governance practices, while maintaining a conservative balance sheet and returning capital via high dividend payouts.
  • Revenue grew 4.6% QoQ to ₹8,416 in Q1FY27.
  • ⚠️ Rising input costs are pressuring operating margins, as seen in the decline from 11.9% in December 2025 to 6.5% in June 2026, despite revenue growth.
Market Cap
₹56,133
P/E Ratio
23.2
P/B Ratio
2.68
ROE
11.5%
ROCE
15.2%
Debt/Equity
0.11
Div Yield
0.18%
Promoter
27.8%

📖 The Story

MRF Ltd is in a mature growth phase with stable profitability and modest top-line expansion, characterized by consistent revenue growth and disciplined capital allocation. Management has demonstrated operational continuity through leadership appointments and strong governance practices, while maintaining a conservative balance sheet and returning capital via high dividend payouts.

📰 What's Happening

In the latest quarter ended June 2026, MRF reported standalone revenue of ₹8,483.04 crores and consolidated revenue of ₹8,610.56 crores, up from ₹7,560.28 crores YoY, driven by operational improvements. The board approved unaudited financial results and appointed Prasanth Puliakottu as Senior GM-IT and Santhosh Mathew as Senior GM-HRS effective August 11, 2026, reinforcing governance continuity. The 65th AGM is scheduled for August 6, 2026, where shareholders will vote on a proposed final dividend of ₹229 per share (2290% of face value), with e-voting opening on August 1 and dividend payout expected by August 17.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue7,3798,0508,0448,416
Operating Profit681962863543
OPM %9.2%11.9%10.7%6.5%
Net Profit526695702495
EPS₹1239.38₹1631.23₹1655.80₹1167.97

Revenue has grown steadily from ₹7,379 crores in September 2025 to ₹8,416 crores in June 2026, reflecting sequential and YoY expansion. Operating margins have moderated slightly to 6.5% in June 2026 from 11.9% in December 2025, indicating rising input costs or pricing pressures despite volume growth. Net profit rose to ₹495 crores in June 2026 from ₹526 crores in September 2025, but declined from the peak of ₹702 crores in March 2026, suggesting earnings normalization post a high-margin quarter.

🔮 Management Outlook & What's Next

Management has not provided forward guidance on revenue or margin expectations in the latest filings, but highlighted operational continuity through new senior appointments and a shareholder-friendly dividend policy. The proposed ₹229 per share final dividend underscores confidence in cash generation, with management emphasizing timely payouts and compliance with regulatory timelines for dividend distribution.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital4444
Reserves17,66418,60619,43720,970
Borrowings3,1383,7713,6312,367
Total Liabilities28,42329,68930,32031,954
Fixed Assets12,65113,20113,09312,966
Investments3,9674,5484,5973,398
Total Assets28,42329,68930,32031,954

The balance sheet shows a stable capital structure with equity of ₹4 crores and reserves growing from ₹18,606 crores in March 2025 to ₹20,970 crores in March 2026, indicating strong retained earnings. Borrowings have declined from ₹3,771 crores to ₹2,367 crores over the same period, reflecting deliberate deleveraging. Total assets increased to ₹31,954 crores, supporting growth without aggressive capital structure expansion.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2026
Operating+4,590
Investing-3,536
Financing-1,120
Net Cash Flow-66

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters27.7%27.7%27.8%27.8%
FII18.3%18.2%18.0%17.4%
DII12.4%12.5%12.3%12.1%
Public12.1%12.1%12.5%13.2%
# Shareholders48,07449,21858,11068,876

Institutional investor interest is rising, with FII holdings increasing from 17.42% in Q1FY27 to 18.27% in Q2FY26, while DII holdings have slightly declined from 12.5% to 12.1%. Promoter holding remains stable at 27.77%. The growing number of shareholders (68,876 in Q1FY27 from 48,074 in Q2FY26) suggests rising retail participation and potential inclusion in broader indices.

⚖️ Peer Comparison — Tyres

Company MCap (₹ Cr) P/E ROCE ROE D/E
MRF 56,133 23.2 15.2% 11.5% 0.11
BALKRISIND 45,075 32.1 13.2% 12.8% 0.37
APOLLOTYRE 28,113 16.4 10.9% 10.2% 0.16
CEATLTD 13,748 23.3 15.6% 11.2% 0.59
JKTYRE 10,783 16.1 12.0% 10.9% 0.78
TVSSRICHAK 4,235 45.9 8.5% 7.8% 0.74
GOODYEAR 1,703 31.6 13.1% 8.9% 0.00
TOLINS 372 11.5 12.2% 10.0% 0.05
542013 168 27.1 17.1% 18.6% 0.54
539040 15 312.5 1.5% 1.2% 0.08

⚠️ Risk Factors

Rising input costs are pressuring operating margins, as seen in the decline from 11.9% in December 2025 to 6.5% in June 2026, despite revenue growth. The company faces execution risks in maintaining margin discipline amid inflationary pressures. Additionally, the high final dividend payout may limit reinvestment capacity if cash flows weaken unexpectedly.

📋 Recent Filings

🧠 Analyst's Read

MRF is demonstrating resilient top-line growth and strong governance, with a focus on shareholder returns and leadership continuity. Investors should monitor margin trends and input cost dynamics in upcoming quarters, as well as the outcome of the upcoming AGM and dividend payout, which remain central to near-term sentiment.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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