JK Tyre achieved record revenue of INR 40.26 billion, driven by strong domestic demand and a strategic shift in export markets.

JK Tyre & Industries reported its highest-ever quarterly results, with consolidated revenue of INR 40.26 billion in Q2 FY2026. This performance was supported by double-digit volume growth in key segments and enhanced operational efficiency.

Profit after tax rose 54 per ent year-on-year to INR 2.23 billion, and EBITDA margins increased to 13.3 percent. This marks a significant turnaround for India’s tyre sector, which has faced volatile raw material costs and uncertain export conditions in recent quarters.

Domestic Market Powers Growth

Domestic volumes increased 15 percent, led by a 22 percent rise in truck and bus radial (TBR) tyre replacements. Passenger vehicle tyre replacements grew 16 percent, while the two- and three-wheeler segment saw exceptional growth of 155 percent.

“The demand has been very good. In fact, the demand is touching double-digit,” said Anshuman Singhania, Managing Director of JK Tyre, in a media roundtable. “We are seeing long hauls coming in because of better infrastructure. So demand is pretty good, and demand is going to be in a very steady trajectory going forward.”

The company attributed strong domestic results to GST rationalisation, improved monsoons supporting rural demand, and increased government infrastructure spending. Management also noted that dealer inventories have normalised, offering better visibility into true demand.

Strategic Export Pivot Pays Off

Despite uncertainty regarding US tariffs, JK Tyre increased export volumes by 13 percent quarter-on-quarter. The company has diversified its exports, with North America now accounting for only 3 percent of total revenue.

“We have diverted most of our exports from the US to other markets,” Singhania explained. The company has strengthened its presence in the Middle East, Europe, Latin America, and Brazil, whilst continuing to serve the US market through its Mexican manufacturing facility.

JK Tornel, the Mexico subsidiary, reported a 26 percent sequential increase in turnover to INR 6.39 billion, up from INR 5.05 billion in the previous quarter.

Premiumisation Strategy Takes Hold

JK Tyre’s focus on premium segments has driven margin improvement. Tyres with rim sizes of 16 inches and above now account for 27 percent of the passenger vehicle mix, up from 18 percent in FY2018.

This strategy aligns with market trends, as sport utility vehicles now make up about 65 per cent of India’s passenger vehicle market, requiring larger, higher-margin tyres. JK Tyre has expanded its premium range, including the Levitas brand and products like Puncture Guard, which have gained acceptance among OEMs and in the aftermarket.

“Our premium products like Levitas, innovative products like Puncture Guard have really got the fancy of our channel partners as well as some of the OEMs,” Singhania said. The company recently supplied 18-inch tyres for Hyundai’s Creta Night Edition, marking its deepening engagement with premium OEM specifications.

Sanjeeva Garwal, Chief Financial Officer, emphasised that the company is not abandoning value segments entirely. “We are not leaving the space in the non-premium segment, which is continuing because we have the capacity,” he noted, adding that new capacity expansions are specifically dedicated to premium and larger rim size tyres.

Capacity Expansion on Track

JK Tyre is investing INR 14 billion to expand capacity. New passenger car radial capacity will be fully operational by July 2026, with additional truck radial capacity set to begin in the fourth quarter of this fiscal year.

Radial tyre production is operating at over 90 percent capacity, and overall utilisation is 87 percent, indicating limited room for growth without expansion. Management is closely monitoring the market for potential future capacity additions.

The company manufactures tyres up to 22 inches in Mexico and 20 inches in India, positioning itself to meet increasing demand for larger sizes as vehicle premiumisation advances.

Raw Material Tailwinds Continue

Improved profitability has been supported by favourable raw material costs, which have declined from Q4 FY2025 through Q2 FY2026. Management expects this trend to continue for the rest of the year.

The company passed on the full benefit of GST rationalisation to consumers whilst maintaining pricing discipline. “Right now, in the second quarter, we have not increased any prices, and going forward, we are always assessing the competitive market because it is a dynamic market,” Singhania said.

Outlook and Guidance

JK Tyre expects to maintain double-digit volume growth for the year, even as the auto and tyre industries are projected to grow 6-7 percent. The company anticipates low single-digit growth in truck tyres, mid single-digit growth in truck radials, and mid-to-high single-digit growth in passenger car radials.

Management described the outlook for the second half as very positive, citing ongoing infrastructure investment, recovering rural demand, and normalised inventory levels across distribution channels.

While JK Tyre remains focused on four-wheeled applications, Singhania noted that the defence sector, which includes tyres for trucks, passenger vehicles, and armoured vehicles, accounts for a high single-digit share of revenue and offers growth potential as India’s defence procurement increasingly favours domestic suppliers.

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Pirelli has entered into a strategic agreement with Swedish technology firm Univrses to integrate artificial intelligence-based computer vision systems into its Cyber Tyre platform. As part of the deal, Pirelli has acquired a 30 percent stake in Univrses, with an option to increase that share to a majority holding. The collaboration will embed Univrses’ 3DAI technologies into Pirelli’s existing Cyber Tyre solutions, creating a unified system aimed at producing safer and higher performing vehicles.

The combined technology has potential applications in advanced driver-assistance systems and autonomous driving. It also generates timely, actionable data for road management, helping authorities make better decisions and deploy resources more efficiently. This could lead to fewer road accidents and saved lives. The system uses onboard cameras and tyres to collect feedback on road conditions. Pirelli’s Cyber Tyre, the first integrated hardware and software system of its kind, gathers data from tyre sensors, processes it with proprietary algorithms and communicates in real time with vehicle electronics and the cloud.

Univrses originally developed its technology to help cars understand their surroundings, but it has since been adapted to turn vehicles into AI-powered road monitoring agents. The Swedish company’s 3DAI Engine provides autonomous vehicles with perception capabilities including 3D positioning, mapping and spatial deep learning. Its 3DAI system digitises roadside infrastructure using data from vehicle-mounted sensors like cameras.

A pilot project is already active in Italy. In 2025, Pirelli and the Puglia Region launched a road network monitoring system to create an updated map of infrastructure conditions. The system analyses data from tyres via the Cyber Tyre platform alongside visual data from cameras interpreted by Univrses’ technology.

Andrea Casaluci, CEO, Pirelli, said, “The agreement with Univrses further enhances our Cyber Tyre™ platform, thanks to advanced AI‑based artificial vision technologies. The collaboration between Pirelli and Univrses will make a significant contribution to the ongoing transformation of cars into true software‑defined vehicles.”

Jonathan Selbie, CEO, Univrses, said, “Continuous monitoring and data are becoming the new foundation for infrastructure asset management, and Univrses technology is able to provide powerful analytical capabilities based on reliable and frequently updated data. In this context, we are pleased to welcome Pirelli as an investor and to take our partnership to the next level: we will join forces to deliver increasingly advanced services and products.”

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ZC Rubber is preparing a major European-focused showcase at THE TIRE COLOGNE, scheduled to run from 9 to 11 June 2026. The tyre manufacturer will occupy Booth C050g in Hall 8.1, highlighting its WESTLAKE and GOODRIDE brands with a clear emphasis on products tailored specifically for regional market demands.

The display will blend imminent and future innovations. Products destined for a European launch in the latter half of 2026 will appear alongside the company’s current truck and bus radial lineup. Selected previews of developments planned for 2027 will also be on view. A featured attraction is the Westlake Sport RS2, a drift-proven ultra-high-performance tyre praised for its grip, precision and 180 treadwear rating. A renewed rubber compound, developed through work with the Red Bull Driftbrothers, now delivers steadier traction under severe driving conditions. Appearing at the stand, Red Bull Driftbrothers driver and engineer Elias Hountondji will illustrate how motorsport data directly refines ZC Rubber’s product engineering.

Additional new passenger car radial models for Europe in the second half of 2026 include the Westlake ZuperFlex Z-137, Goodride RideMax G-147, the all-season Westlake Zuper4S Z-411 and the off-road focused Westlake Terra Legend SL399 and Goodride Mud Legend SL388. On the truck and bus side, already available tyres such as the Westlake WSL2, Westlake WDL2+ and Goodride S2, D3 and D4 will be exhibited, covering steer and drive axle needs for long-haul and heavy-duty transport.

A sneak peek at 2027 offerings will feature the Westlake Z-301 commercial van tyre, Goodride All Season G-721, Goodride SnowComfort G-518 and new TBR models including the Westlake WTL2, Westlake WTR OEM and Goodride M2. ZC Rubber’s team will remain on-site throughout the event, welcoming visitors and partners to the booth for meetings and professional discussions.

Leo Liao, General Manager, ZC Rubber Europe, said, “This year’s showcase reflects a much broader and more complete portfolio for Europe. From UHP and all-season tyres to all-terrain, mud-terrain and TBR solutions, we are bringing new developments across almost every major segment. This reflects how seriously we take the European market: we are listening to local needs, investing in the right products and building a portfolio that better matches the needs of our European partners.”

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Magna Tyres has launched the MA801 TR, a new solid tyre engineered for extreme operating conditions in recycling facilities and heavy industrial settings. Designed to maximise equipment uptime while supporting high load capacities, the tyre is built to deliver dependable performance in harsh environments. The official debut of the MA801 TR will take place at IFAT 2026 in Munich, scheduled from 4 to 7 May 2026.

The new model is intended for compact wheel loaders and telescopic handlers, featuring a flat-free solid construction. Its extra-deep non‑directional tread is reinforced by a triangular structural design, which enhances traction and stability on surfaces littered with sharp debris. Available in sizes 13.00‑24 and 14.00‑24, the tyre prioritises puncture resistance and reduced maintenance needs.

Thanks to its robust architecture and deep tread profile, the MA801 TR offers an extended service life and consistent performance across demanding work cycles. By eliminating the risk of flats, Magna Tyres positions the tyre as a reliable solution for recycling and industrial operations where continuous heavy loads are standard.

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The Yokohama Rubber Co., Ltd. has secured validation from the Science Based Targets initiative (SBTi), a prominent corporate climate-action organisation, for its greenhouse gas (GHG) emission reduction targets set for 2035. This endorsement confirms that the company’s goals are scientifically aligned with the standards established under the Paris Agreement. The validated targets are measured relative to the company’s 2024 emission levels.

Under the approved framework, Yokohama Rubber aims for a 63.0 percent reduction in combined Scope 1 and Scope 2 emissions, which cover direct emissions from its business activities as well as indirect emissions from purchased energy. Additionally, the company commits to a 37.5 percent cut in Scope 3 emissions, specifically targeting indirect supply chain emissions from purchased products and services, along with fuel and energy-related activities not included in Scope 1 or Scope 2. To achieve these reductions, Yokohama Rubber has been expanding solar power generation and renewable energy electricity at its global plants, while also disclosing indirect emissions from product distribution, use and disposal since 2013.

The company obtained SBTi validation to accelerate supply-chain-wide emission cuts in response to intensifying climate challenges. Operating under its sustainability management slogan, ‘Caring for the Future’, Yokohama Rubber continues to create shared value by tackling social issues directly through its business operations.

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