Q1 2027 JK Tyre & Industries Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the JK Tyre & Industries Limited Q1 FY27 Earnings Conference Call, hosted by MK Global Financial Services. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day, and welcome to JK Tyre & Industries Limited Q1 FY27 Earnings Conference Call, hosted by Emkay Global Financial Services. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag Jain. Thank you. Over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to JK Tyre & Industries Limited Q1 FY27 Earnings Conference Call, hosted by Emkay Global Financial Services. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag Jain. Thank you. Over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Cherak Jain. Thank you, and over to you, sir.

Speaker #2: Thank you, Atharwa. Good afternoon, everyone. On behalf of MK Global Financial Services, I welcome you all to the Q1 FY27 earnings conference call of JK Tyre & Industries Limited.

Chirag Jain: Thank you, Atharva. Good afternoon, everyone. On behalf of Emkay Global Financial Services, I welcome you all to the Q1 FY27 earnings conference call of JK Tyre & Industries Limited. Today from the management team, we have with us Mr. Anshuman Singhania, Managing Director, Mr. Arun K. Bajoria, Director and President, International, Mr. A.K. Kinra, Financial Advisor, and Mr. Sanjeev Aggarwal, Chief Financial Officer. I will now hand over the call to the management team for their opening remarks, post which we will open the floor for Q&A. Over to you, sir.

Speaker #2: Today, from the management team, we have with us Mr. Anshuman Singhania, Managing Director; Mr. Arun K. Bajoria, Director and President – International; Mr. A.K. Kindra, Financial Advisor; and Mr. Sanjiv Agarwal, Chief Financial Officer.

Speaker #2: I will now hand over the call to the management team for their opening remarks, after which we will open the floor for Q&A. Over to you, sir.

Speaker #3: Yeah. Thank you. Good evening, everyone, and I again welcome you all to the JK Tyre Q1 FY27 earnings conference call. Let me start with the macroeconomic perspective.

Anshuman Singhania: Thank you. Good evening, everyone, welcome you all to JK Tyre Q1 FY27 earnings con call. Let me start with the macroeconomic perspective. The Indian economy Q1 FY27 showed solid growth, supported by strong domestic demand. The industry showed resilience, external uncertainty and higher input cost weighed on profitability. The real GDP is projected to grow at 6.6% in FY27. The country's growth outlook continues to be supported by robust domestic consumption, steady service activities, government focus on CapEx, and supported monetary and fiscal conditions. The recent signed FTAs with several nations include EU, UK, etc., which augurs well to strengthen India's export and trade, which will help cushion the impact of the macroeconomic volatility, while simultaneously penetrating deeper into these markets.

Speaker #3: The Indian economy in Q1 FY27 showed solid growth, supported by strong domestic demand. The industry showed resilience, but external uncertainty and higher input costs weighed on profitability.

Speaker #3: The real GDP is projected to grow at 6.6% in FY27. The country's growth outlook continues to be supported by robust domestic consumption, steady service activities, a government focus on CapEx, and supportive monetary and fiscal conditions.

Speaker #3: The recently signed FTAs with several nations, including the EU and UK, argue well to strengthen India's export and trade, which will help cushion the impact of macroeconomic volatility.

Speaker #3: While simultaneously penetrating deeper into these markets in Q1 FY27, the Indian auto industry posted another consecutive quarter of record performance across all sectors, registering high double-digit growth supported by sustained demand momentum across urban and rural markets. This was on the back of benefits of GST reforms, rising infrastructure activities, higher freight movement, new model launches, along with ease of financing supported by lower interest rates.

Anshuman Singhania: In Q1 FY27, Indian auto industry posted another consecutive quarter of record performance across all sectors, registering high double-digit growth, supported by sustained demand momentum across urban and rural markets on the back of benefits of GST reforms, rising infrastructure activities, higher freight movement, new model launches, along with availability of ease in financing, supported by lower interest rate. During the quarter, PV segment witnessed a leading growth of 23%, CV grew by 14%, two/three-wheeler segment grew by 14% on a YOY basis. Continuing with record performance in FY26, led by demand momentum. Farm segment also performed very well with a robust growth of 22%, despite concerns of below normal monsoon. Coming to JK Tyre in Q1 FY27, we have witnessed a steady performance and recorded consolidated turnover of INR 3,956 crore, supported by strong demand momentum across segments.

Speaker #3: During the quarter PV segment witnessed the leading growth of 23%, CV grew by 14%, 23-wheeler segment grew by 14% on a by-and-by basis. Continuing with record performance in FY26, led by demand momentum.

Speaker #3: The farm segment also performed very well, with robust growth of 22%, despite concerns of a below-normal monsoon. Coming to JK Tyre in Q1 FY27, we have witnessed a steady performance and recorded consolidated turnover of ₹3,956 crore, supported by strong demand momentum across segments.

Speaker #3: The performance is driven by a focus on customer-centricity, product excellence, and sharp execution across markets. During the quarter, domestic sales volume grew by 25% year-on-year across both replacement and OEM markets.

Anshuman Singhania: The performance is driven by focus on customer centricity, product excellence, and sharp execution across markets. During the quarter, domestic sales volume grew by 25% year-on-year basis across both replacement and OEM markets, with increasing contribution from higher value-added products. The continuing West Asia crisis led to a steep increase in raw material prices approximately by 20% vis-à-vis Q4 FY26, which impacted our gross and operating margins. We are offsetting the same by taking selling price increase in a staggered manner, enriching our product mix, higher share of value-added products, operating leverages, and taking efficiency improvement measures. We are hoping that the recent moderation, very important, in commodity and crude oil prices are expected to lower the input cost and improve profitability margins going forward.

Speaker #3: With increasing contribution from higher value-added products, the continuing West Asia crisis led to a steep increase in raw material prices, approximately by 20%, vis-à-vis Q4 FY26, which impacted our gross and operating margins.

Speaker #3: We are offsetting the sale by taking selling price increases in a staggered manner and reaching a higher share of value-added products in our product mix, operating leverage, and taking efficiency improvement measures.

Speaker #3: We are hoping that the recent modernization in moderation in commodity and crude oil prices are expected to lower the input cost and improve profitability margins going forward.

Speaker #3: We are optimistic that the demand momentum in the automobile and tyres would remain intact in the medium term, supported by new launches, strong replacement market needs, rapid infrastructure growth, and rising vehicle parts.

Anshuman Singhania: We are optimistic that the demand momentum in the automobile and tires would remain intact in the medium term, supported by new launches, strong replacement market needs, rapid infrastructure growth, and rising vehicle park. Rural markets continue to gain traction in line with urban markets, driven by rising income, improving infrastructure, and growing aspiration for quality products, which is translating into increased vehicle ownership and thereby accelerating the tire demand. We are strategically expanding our rural distribution network to cater to this emerging demand. At JK Tyre, our focus remains on sweating of assets fully, improving product mix, leveraging premiumization, and EV-oriented portfolios. This, together with enhancing digital and manufacturing excellence by leveraging IoT, AI, and ML, and deepening our customer engagement to deliver reliable, relevant, and future-ready mobility solutions. Our mobility business continues to register high double-digit growth driven by connected and intelligent solutions.

Speaker #3: Rural markets continue to gain traction in line with urban markets, driven by rising incomes, improving infrastructure, and growing aspirations for quality products, which is translating into increased vehicle ownership and thereby accelerating tyre demand.

Speaker #3: We are strategically expanding our rural distribution network to cater to this emerging demand. At JK Tyre, our focus remains on fully sweating our assets, improving product mix, and leveraging feminization and EV-oriented portfolios.

Speaker #3: This, together with enhancing digital and manufacturing excellence by leveraging IoT, AI, and ML, and deepening our customer engagement to deliver reliable, relevant, and future-ready mobility solutions.

Speaker #3: Our mobility business continues to register high double-digit growth, driven by connected and intelligent solutions. We are establishing a pan-India ecosystem which is supported by a network of 100-plus Truck Wheels and 700-plus Pit Stops.

Anshuman Singhania: We are establishing pan-India ecosystem, which is supported by a network of 100 plus Truck Wheels and 700 plus pit stops, enabling seamless and timely on-road service. India's EV ecosystem is growing rapidly with customers moving from IC to EV on back of surging fuel costs, improving cost of economy, and wider model availability. We have witnessed a double-digit growth in overall EV volumes over previous quarter. We offer a full-stack solution for EV tire, and are well prepared to lead this emerging trend. It is my pleasure to bring to your attention that JK Tyre holds the international benchmark in raw water usage and energy consumption, and our aim is to grow responsibly, reducing resource consumption and strengthening long-term resilience. I'm proud to share that our Vikrant and Chennai tire plant have received an international safety award from the British Safety Council.

Speaker #3: Enabling seamless and timely on-road service. India's EV ecosystem is growing rapidly, with customers moving from IC to EV on the back of surging fuel costs, improving economies of scale, and wider model availability.

Speaker #3: We have witnessed double-digit growth in overall EV volumes over the previous quarter. We offer a full-stack solution for EV tyres and are well prepared to lead this emerging trend.

Speaker #3: It is my pleasure to bring to your attention that JK Tyre holds the international benchmark in raw water usage and energy consumption, and our aim is to grow responsibly by reducing resource consumption and strengthening long-term resilience.

Speaker #3: I am proud to share that our Vikran and Chennai tyre plants have received an international safety award from the British Safety Council. CII has also recognized several of our plants for sustainability, environment, health, and safety factors.

Anshuman Singhania: CII has also recognized several of our plants for sustainability, environment, health, and safety practices. Our Global Tech and Innovation Center, RPSCOE, has signed a Memorandum of Understanding with The National Institute of Engineering, Mysore, strengthening industry-academia collaboration. This partnership aims to drive innovation in tire engineering through leveraging emerging technologies like AI and data-driven solutions. Keeping our optimistic outlook on tire demand, we stand committed to expand our manufacturing capabilities as already announced in the previous quarter for INR 4,980 crore for PCR and TBR at Chennai tire plant. I would like to take you through some of the key operational highlights for Q1. Domestic markets recorded a healthy volume of 25%, led by a robust 42% growth in OEM. TBR volumes in OEM market grew by 18%, and in the replacement market by 15% on a Y-on-Y basis.

Speaker #3: Our global tech and innovation center, RPSCOE, has signed an MOU with the National Institute of Engineering, Mysore, strengthening industry-academia collaboration. This partnership aims to drive innovation in tyre engineering by leveraging emerging technologies like AI and data-driven solutions.

Speaker #3: Keeping our optimistic outlook on tyre demand, we stand committed to expanding our manufacturing capabilities, as already announced in the previous quarter, for ₹4,980 crores for PCR and TBR at the Chennai Tyre Plant.

Speaker #3: Now I would like to take you through some of the key operational highlights for Q1. Domestic markets recorded a healthy volume growth of 25%, led by a robust 42% growth in OEM.

Speaker #3: TBR volumes in the OEM market grew by 18%, and in the replacement market by 15%, on a year-on-year basis. Passenger line volume grew by 10% year-on-year, led by OEM.

Anshuman Singhania: Passenger line volume grew by 10% on a Y-on-Y basis, led by an OEM. Farm category volume also saw significant growth of 31% Y-on-Y basis, contributed by 35% growth in OEM and 25% in replacement. Two-three-wheeler category volume in the OE segment registered a high double-digit growth of 70%, while replacement volume grew by 48% on a Y-on-Y basis. I would request Dr. Arun K. Bajoria to talk about the performance of Tornel.

Speaker #3: Farm category volume also saw significant growth of 31% year-on-year basis contributed by 35% growth in OEM and 25% in replacement. Two-three-wheeler category volume in the OE segment registered a high double-digit growth of 70% while replacement volume grew by 48% on a year-on-year basis.

Speaker #3: Now, I would request Dr. Bajureji to talk about the performance of Tornell.

Speaker #2: Thank you, MD sir. I will begin with a brief overview of the operating environment in Mexico. Starting the current year 2026, Mexico's macroeconomic position and domestic environment is witnessing an improvement, as evident from the appreciation of the Mexican peso against the US dollar on a year-on-year basis, which signals a rebound in investors' confidence in the economy.

Arun K. Bajoria: Thank you, MD sir. I will begin with a brief overview of the operating environment in Mexico. Starting current year 2026, Mexico's macroeconomic position and domestic environment is witnessing an improvement, as evident from the appreciation of Mexican peso against US dollar on a year-on-year basis, which signals a rebound in investors' confidence in the economy, its policy framework, and equals greater external stability. As per Mexico's fiscal authorities, the economy is now better placed and is expected to achieve a GDP growth of more than 1.5%, outperforming the IMF's latest projection of 1.2% for 2026. Talking about the Mexican tire market, it is poised for a balanced growth with momentum in OE market, a resilient replacement market, and higher export potential with focus on local sourcing. During the quarter, operations at JK Tornel Mexico were impacted due to ongoing geopolitical disruptions, resulting in constrained availability of key inputs.

Arun Kumar Bajoria: Thank you, MD sir. I will begin with a brief overview of the operating environment in Mexico. Starting current year 2026, Mexico's macroeconomic position and domestic environment is witnessing an improvement, as evident from the appreciation of Mexican peso against US dollar on a year-on-year basis, which signals a rebound in investors' confidence in the economy, its policy framework, and equals greater external stability. As per Mexico's fiscal authorities, the economy is now better placed and is expected to achieve a GDP growth of more than 1.5%, outperforming the IMF's latest projection of 1.2% for 2026. Talking about the Mexican tire market, it is poised for a balanced growth with momentum in OE market, a resilient replacement market, and higher export potential with focus on local sourcing. During the quarter, operations at JK Tornel Mexico were impacted due to ongoing geopolitical disruptions, resulting in constrained availability of key inputs.

Speaker #2: Its policy framework and ecosystem provide greater external stability. As per Mexico's fiscal authorities, the economy is now better placed and is expected to achieve GDP growth of more than 1.5%, outperforming the IMF's latest projection of 1.2% for 2026.

Speaker #2: Talking about the Mexico tyre market, it is poised for balanced growth with momentum in the OE market, a resilient replacement market, and higher export potential with a focus on local sourcing.

Speaker #2: During the quarter, operations at JK Tornel, Mexico, were impacted due to ongoing geopolitical disruptions, resulting in constrained availability of key inputs. Furthermore, productivity enhancement negotiations with workers resulted in IR issues, which have since been resolved.

Arun K. Bajoria: Furthermore, productivity enhancement negotiations with workers resulted in IR issues, which have since been resolved. We would like to assure you that dedicated efforts are underway to continuously enhance sales and profitability going ahead. To cater to the emerging demand for our products, we are currently undertaking an upgradation and modernization project at JK Tornel, which will help in further strengthening of our competitive position in local and other markets as well. With that, I would now like to invite Mr. Sanjeev Aggarwal, the CFO, to take you through the financial performance of JK Tyre for Q1 of FY27. Thank you.

Arun Kumar Bajoria: Furthermore, productivity enhancement negotiations with workers resulted in IR issues, which have since been resolved. We would like to assure you that dedicated efforts are underway to continuously enhance sales and profitability going ahead. To cater to the emerging demand for our products, we are currently undertaking an upgradation and modernization project at JK Tornel, which will help in further strengthening of our competitive position in local and other markets as well. With that, I would now like to invite Mr. Sanjeev Aggarwal, the CFO, to take you through the financial performance of JK Tyre for Q1 of FY27. Thank you.

Speaker #2: We would like to assure you that dedicated efforts are underway to continuously enhance sales and profitability going forward. To cater to the emerging demand for products, we are currently undertaking an upgradation and modernization project at JK Tornel, which will help in further strengthening our competitive position in local and other markets as well.

Speaker #2: With that, I would now like to invite Mr. Sanjeev Agarwal, the CFO, to take you through the financial performance of JK Tyre for the first quarter of FY27.

Speaker #2: Thank you.

Speaker #1: Thank you very much, Dr. Bajureji. Let me briefly share the key highlights for Q1 of FY27. Number one, the company recorded a consolidated revenue of ₹3,956 crore, which is up by 2% on a year-on-year basis, as against ₹3,891 crore in the corresponding quarter.

Sanjeev Aggarwal: Thank you very much, Dr. Bajoria. Let me briefly share the key highlights for Q1 of FY27. Number one, the company recorded a consolidated revenue of INR 3,956 crore. It is up by 2% on YoY basis as against INR 3,891 crore in the corresponding quarter. Consolidated EBITDA for Q1 was recorded at INR 268 crore as compared to INR 424 crore in Q1 of last financial year. EBITDA margins on consolidated basis in Q1 were recorded at 6.8% versus 10.9% in Q1 of FY26. Average raw material cost in Q1 was up by 20% on sequential basis. Cash profit for Q1 stood at INR 169 crore, vis-à-vis INR 309 crore in the corresponding quarter. Profit after tax for the quarter stood at INR 43 crore. Installed capacities in India were fully utilized across segments, including for TBR, PCR, 2W and 3W segments.

Speaker #1: Consolidated EBITDA for quarter one was recorded at ₹268 crore as compared to ₹424 crore in Q1 of last financial year. EBITDA margins on a consolidated basis in quarter one were recorded at 6.8% versus 10.9% in Q1 of FY26.

Speaker #1: Average raw material costs in Q1 were up by 20% on a sequential basis. Cash profit for Q1 stood at ₹169 crore vis-à-vis ₹309 crore in the corresponding quarter.

Speaker #1: Profit after tax for the quarter stood at ₹43 crore. Installed capacities in India were fully utilized across segments, including TBR, PCR, and two- and three-wheeler.

Speaker #1: In quarter one, export volumes from India remained steady despite geopolitical uncertainties, and were up by 2% on a sequential basis over quarter four of the last financial year.

Sanjeev Aggarwal: In Q1, export volumes from India remained steady despite geopolitical uncertainty and were up by 2% on sequential basis over Q4 of last financial year. Consolidated earnings per share in Q1 stood at INR 1.55 per share, which was high at INR 6.03 per share in Q1 of last year. Return ratios continues to remain robust and healthy. Consolidated net debt as on 30 June 2026, stood at INR 4,945 crore, which is up by INR 500 crore on sequential basis. The overall debt of the company has moved primarily on account of increase in CapEx led long term loans, disbursements and additional working capital required due to increased raw material and selling prices and operating volumes of the company. The balance sheet of the company continues to remain healthy and leverage ratios are in comfortable zone.

Speaker #1: Consolidated earnings per share in quarter one stood at ₹1.55 per share, which was higher by 6.03%. It was ₹1.03 per share in quarter one of last year.

Speaker #1: Return ratios continue to remain robust and healthy. Consolidated net debt as on 30th of June '26 stood at ₹4,945 crore, which is up by ₹500 crore on a sequential basis.

Speaker #1: The overall debt of the company has moved primarily on account of increase in capex led long-term loans disbursements and additional working capital required due to increased raw material and selling prices and the volumes and the operational operating volumes of the company.

Speaker #1: The balance sheet of the company continues to remain healthy, and leverage ratios are in a comfortable zone. Net debt to equity and net debt to EBITDA remain at 0.81x and 2.56x, respectively, as on 30th June 2026.

Sanjeev Aggarwal: Net debt to equity and net debt to EBITDA remains 0.81x and 2.56x as on 30 June 2026. We have already circulated our earnings presentation, which is available on our website as well as on stock exchange website. We open the forum for question and answer. Thank you.

Speaker #1: We have already circulated our earnings presentation, which is available on our website as well as on the stock exchange website. We now open the forum for questions and answers.

Speaker #1: Thank you.

Speaker #3: Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vijay Kumar from Axis Capital. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vijay Kumar from Axis Capital. Please go ahead.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handhelds while asking a question.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vijay Kumar from Axis Capital.

Speaker #3: Please go ahead.

Vijay Kumar Pandey: Hi. Thank you for taking my question. Couple of questions. First one is India business. Can you help us understand what was the volume growth for the Q1? Because when you say 25% growth in volume, I just want to understand whether you're referring it to broader industry growth or is it growth for us because our revenue growth was around 14% for India business. Just want to correlate both volume growth and revenue growth for India business.

Vijay Kumar: Hi. Thank you for taking my question. Couple of questions. First one is India business. Can you help us understand what was the volume growth for the Q1? Because when you say 25% growth in volume, I just want to understand whether you're referring it to broader industry growth or is it growth for us because our revenue growth was around 14% for India business. Just want to correlate both volume growth and revenue growth for India business.

Speaker #1: Hi. Hi. Thank you for taking my question. So, a couple of questions. First one is on the India business. Can you help us understand what was the volume growth for Q1? Because when you say 25% growth in volume, I just want to understand whether you are referring to the broader industry growth, or is it growth for us? Because our revenue growth was around 14% for the India business.

Speaker #1: So, just want to collate both volume growth and revenue growth for the India business.

Speaker #4: Yeah. So, our domestic volume growth was 25% year-on-year, based on the corresponding quarter. So, the volume growth in numbers includes replacement and OE.

Anshuman Singhania: Our domestic volume growth was 25% on year-on-year basis from the corresponding quarter. The volume growth in numbers, which includes replacement and OE, domestic sales.

Speaker #4: So, domestic sales—that implies that pricing was...

Vijay Kumar Pandey: That implies that pricing was down YoY because revenue growth in India business is 14%, right? Can you help us absorb this gap?

Vijay Kumar: That implies that pricing was down YoY because revenue growth in India business is 14%, right? Can you help us absorb this gap?

Speaker #1: Down year-on-year because revenue growth in India business is 14%, right? So, can you help us absorb this gap, or so? There has been an increase in price, and in net effective prices coming to roughly around 5%, and this we are talking about only this.

Sanjeev Aggarwal: Absolutely. There has been an increase in price and the net effective price is coming to roughly around 5%. We are talking about only the standalone basis, right?

Speaker #1: Standalone basis right.

Speaker #4: Yes.

Vijay Kumar Pandey: Yes, standalone basis.

Vijay Kumar: Yes, standalone basis.

Speaker #1: Standalone basis.

Speaker #4: On a sequential basis from the previous quarter, the 5% increase in MSR is roughly around there.

Sanjeev Aggarwal: On sequential basis, from the previous quarter, the 5% increase in NSR is roughly around 10%.

Speaker #2: And we have, just to add to that, the OEM growth was, in volumes, 42%, and in terms of price—which they pass on—there is always a lag.

Anshuman Singhania: Just to add to that, the OEM growth was in volume 42%. In terms of price which they pass on is always a lag. It doesn't really sit on the Q1. It will come in the subsequent quarters.

Speaker #2: So, it doesn't really sit in the first quarter. It will come in the subsequent quarters.

Speaker #1: Okay. Can you also talk about the metrics of the Mexico business? That has been quite volatile. The Mexico business in the fourth quarter was also weak, and the first quarter had also declined significantly year-on-year.

Vijay Kumar Pandey: Okay. Sir, can you also inform us about the Mexico business? That has been quite volatile, the Mexico business. Our Q4 was also weak, and Q1 has also declined significantly on YoY basis. Should we expect it to improve from here, and what is the nominal level? What is the expectation for FY27 regarding the Mexico business?

Vijay Kumar: Okay. Sir, can you also inform us about the Mexico business? That has been quite volatile, the Mexico business. Our Q4 was also weak, and Q1 has also declined significantly on YoY basis. Should we expect it to improve from here, and what is the nominal level? What is the expectation for FY27 regarding the Mexico business?

Speaker #1: Should we expect it to improve from here, or what is the nominal level? What is the expectation for FY27 regarding the Mexico business?

Speaker #4: Yes, Mr. Vijay. The thing is, as I said, during this quarter the operations were impacted due to the ongoing geopolitical disruptions, resulting in constrained availability of key inputs, which also obviously affected the output.

Arun K. Bajoria: Yes, Mr. Vijay. The thing is, as I have said, that during this quarter, the operations were impacted due to the ongoing geopolitical disruptions, and resulting in constrained availability of key inputs, which also obviously affected the output. The productivity enhancement negotiations also came in the way this time, particularly this quarter. Now everything is resolved, and we again started getting the normal production. I can only assure you that this year, remaining 3 quarters, we will be definitely showing you better results than what you have seen in Q1.

Arun Kumar Bajoria: Yes, Mr. Vijay. The thing is, as I have said, that during this quarter, the operations were impacted due to the ongoing geopolitical disruptions, and resulting in constrained availability of key inputs, which also obviously affected the output. The productivity enhancement negotiations also came in the way this time, particularly this quarter. Now everything is resolved, and we again started getting the normal production. I can only assure you that this year, remaining 3 quarters, we will be definitely showing you better results than what you have seen in Q1.

Speaker #4: And, but the productivity enhancement negotiations also came in the way this time, particularly this quarter, but now everything is resolved. We have again started getting the normal production, and I can only assure you that in the remaining three quarters of this year, we will definitely show you better results than what you have seen in Q1.

Speaker #1: Okay. So, in terms of the Mexico business, the input—like the supply chain issue—was related to... can you provide specifically which part it was, which component it was?

Vijay Kumar Pandey: Okay. In terms of Mexico business, the input, like the supply chain issue, was related to. Can you provide the specific, which part it was, which component it was?

Vijay Kumar: Okay. In terms of Mexico business, the input, like the supply chain issue, was related to. Can you provide the specific, which part it was, which component it was?

Speaker #4: See, mainly, we are getting the raw material from two sources. And because of the shipping disruptions, and also because the container, as you would have known by now, the prices have absolutely shot through the roof.

Arun K. Bajoria: Mainly, we are getting the raw material from two sources, and because of the shipping disruptions and also because the container, as you would have known by now, the prices have absolutely shot through the roof. All those things have affected us. We have been getting lot of our bead wire from China, that has also affected us. The natural rubber prices, as you've just heard, it is a similar story in Mexico as well, where almost about 18% increase has already taken place. We are now getting back to the normalcy because certain shipments which were delayed are now reaching one by one. I can only tell you that, yes, this was a little softer quarter, going forward from here, you will see a better production, better sales and therefore better bottom line.

Arun Kumar Bajoria: Mainly, we are getting the raw material from two sources, and because of the shipping disruptions and also because the container, as you would have known by now, the prices have absolutely shot through the roof. All those things have affected us. We have been getting lot of our bead wire from China, that has also affected us. The natural rubber prices, as you've just heard, it is a similar story in Mexico as well, where almost about 18% increase has already taken place. We are now getting back to the normalcy because certain shipments which were delayed are now reaching one by one. I can only tell you that, yes, this was a little softer quarter, going forward from here, you will see a better production, better sales and therefore better bottom line.

Speaker #4: So all those things have affected us, and we have been getting a lot of our bead wire from China, so that has also affected us.

Speaker #4: The natural rubber prices, as you've just heard, show a similar story in Mexico as well, where almost about an 18% increase has already taken place.

Speaker #4: And we are now getting back to normalcy because certain shipments which were delayed are now reaching us one by one. So, I can only tell you that yes, this was a slightly softer quarter, but going forward from here you will see better production, better sales, and therefore a better bottom line.

Speaker #1: Okay. So because the concern was that the China bid was that the geopolitical issue between the US and China will still continue. So, yeah, war and so on. How much price increase have we taken in the first quarter, and what is expected for the second quarter?

Vijay Kumar Pandey: Okay. Sir, concern was that China bead wire part, that geopolitical issue between US and China will still continue also. Sir, how much price increase we have taken in Q1, and what is expected for Q2?

Vijay Kumar: Okay. Sir, concern was that China bead wire part, that geopolitical issue between US and China will still continue also. Sir, how much price increase we have taken in Q1, and what is expected for Q2?

Speaker #2: Yeah. So, in the first quarter, we took a price increase of nearly about 5%, and further, we are going to be taking an increase in the range of about 8 to 9%.

Anshuman Singhania: Yeah. The Q1 we took a price increase of nearly about 5%, and further we are going to be taking in the range of about 8% to 9%.

Speaker #1: And this, we have—some of this is already taken, or 8 to 9 percent, or all of it will come in the later part?

Vijay Kumar Pandey: Some of this is already taken, or 8% to 9%, or all of it will come in the later part?

Vijay Kumar: Some of this is already taken, or 8% to 9%, or all of it will come in the later part?

Speaker #2: We are already.

Anshuman Singhania: We have already taken.

Speaker #1: 5% was in Q1 only, right?

Vijay Kumar Pandey: Like 5% was in Q1 only, right?

Vijay Kumar: Like 5% was in Q1 only, right?

Speaker #2: Yeah. But till now we have already taken about 11%, and...

Anshuman Singhania: Yeah. Till now we have already taken about 11%.

Vijay Kumar Pandey: Cumulatively.

Vijay Kumar: Cumulatively.

Speaker #4: Comparatively.

Speaker #2: Cumulatively, and further, we have 5–6% going forward.

Anshuman Singhania: Cumulatively. Further we have 5% to 6% going forward.

Speaker #1: Okay. Okay.

Vijay Kumar Pandey: Okay.

Vijay Kumar: Okay.

Anshuman Singhania: Thank you.

Speaker #2: That's thank you.

Speaker #3: Thank you. A reminder to all the participants: to ask a question, please press star and one. I repeat, to ask a question, please press star and one.

Operator 2: Thank you. A reminder to all the participants, to ask a question, please press star and one. I repeat, to ask a question, please press star and one. The next question comes from the line of Bharat Bhagnani from Living Root Analytics. Please go ahead.

Operator: Thank you. A reminder to all the participants, to ask a question, please press star and one. I repeat, to ask a question, please press star and one. The next question comes from the line of Bharat Bhagnani from Living Root Analytics. Please go ahead.

Speaker #3: The next question comes from the line of Bharat Bhagmani from Living Root Analytics. Please go ahead.

Speaker #5: Yeah, hello everybody. My question was on the remaining three quarters of this year. Someone was saying that we are expecting better sales, better volumes, better pricing, and better profits.

Bharat Bhagnani: Yeah. Hello, everybody. My question was on the remaining three quarters of this year. Somebody was saying that we are expecting better sales, better volumes and better pricing, better profits. Could you help us understand, could you help us quantify, what exactly are we aiming for this year, this financial year?

Speaker #5: So, could you help us understand—could you help us quantify what exactly we are aiming for this year, this financial year?

Speaker #4: Are you talking about the India domestic market, or are you talking about the total? Because the total, I think, we have very clearly explained. So, Mr. Bhagmani, this is about India.

Arun K. Bajoria: Are you talking about India domestic market, or you're talking about the total? Total we have, I think, very clearly explained.

Arun Kumar Bajoria: Are you talking about India domestic market, or you're talking about the total? Total we have, I think, very clearly explained.

Bharat Bhagnani: Sure.

Arun K. Bajoria: Mr. Bhagnani, this is about India, then I can tell you, and then Hemanthi will answer it, that because now the intensity of war and therefore the supply side problems on account of the raw material have to a large extent been resolved. We are hoping that these raw material prices, barring maybe some increase of between 8% to 10% as we have been noticing because of the inventory, which is at a half price we have accumulated actually, even now. That is there in the inventory. Otherwise things are normalizing, and once these are stabilized, then we will be able to see a good margin improvement from at least H2 of this financial year.

Arun Kumar Bajoria: Mr. Bhagnani, this is about India, then I can tell you, and then Hemanthi will answer it, that because now the intensity of war and therefore the supply side problems on account of the raw material have to a large extent been resolved. We are hoping that these raw material prices, barring maybe some increase of between 8% to 10% as we have been noticing because of the inventory, which is at a half price we have accumulated actually, even now. That is there in the inventory. Otherwise things are normalizing, and once these are stabilized, then we will be able to see a good margin improvement from at least H2 of this financial year.

Speaker #4: Then I can tell you, and we will say that because now the intensity of war—and therefore the supply side problems on account of raw material—have to a large extent been resolved, we are hoping that these raw material prices, barring maybe some increase, have stabilized.

Speaker #4: Between 8 to 10%, as we have been noticing, because of the inventory which is at a higher price. We have accumulated actually even now.

Speaker #4: So that is there in the inventory, but otherwise things are normalizing, and once these are stabilized, then we will be able to see a good margin improvement from at least the second half of this financial year.

Speaker #4: Right? So, we are expecting that all three quarters, from now onwards, should be on a progressive basis, improving in terms of margins.

Bharat Bhagnani: Okay.

Sanjeev Aggarwal: We're expecting all the three quarters now onwards should be on a progressive basis, improving in terms of margins.

Speaker #5: Okay. Are you concerned at all about natural rubber prices?

Bharat Bhagnani: Okay. Are you concerned at all about the natural rubber prices?

Speaker #2: Natural rubber prices—we have seen, in fact, some softening which has happened, and so we see that probably going to be in that range, around fashion.

Sanjeev Aggarwal: Natural rubber prices, we have seen some softening, which has happened. We see that probably going to be in that range on the front.

Speaker #5: Okay, okay. So, but you feel that once you take a price hike, it should be able to cover that, right?

Bharat Bhagnani: Okay. You feel that once you take a price hike, it should be able to cover that, right?

Speaker #4: Definitely. So we are expecting that the price increase which we have already taken until date plus what we are contemplating going forward. So this should cover the entire increase in raw material prices barring maybe I'm not talking about maybe one or two percent but that of course we are trying to offset through the cost reduction measures higher operating leverages and so many other things like as Anshumanji mentioned earlier about the product mix and higher premiumization.

Sanjeev Aggarwal: Yes. We are expecting that the price increase, which we have already taken till date, plus what we are contemplating going forward. This should cover the entire increase in raw material prices, barring maybe, I am now talking about maybe 1% or 2%. That, of course, we are trying to offset through the cost reduction measures, higher operating leverages, and so many other things like, as Anshumanji mentioned earlier about the product mix and higher premiumization. Those kind of measures will also improve the margins. We should be able to come back to broadly the normal range of 11% to 13% in the H2.

Speaker #4: So those kind of measures will also improve the margins. And we will we should be able to come back to the normal range of broadly the normal range of 11 to 13% in the second half.

Speaker #5: Okay. And what kind of revenue growth, Sandeep, are we expecting this year on an overall basis? Because I think there's some new capacity which has come online as well, right?

Bharat Bhagnani: Okay. What kind of revenue growth, Sanjeevji, are we expecting this year on an overall basis? Because I think there's some new capacity which has come online as well, right?

Sanjeev Aggarwal: Yeah. This was already there and somewhat still some ramp-up is happening in the case of passenger car radial tire.

Speaker #4: Yeah. This is already there. And somewhat still some ramp up is happening in the case of passenger car radial tires. So we are expecting that everything will get let's say up and steam running so by by the second sorry third quarter of this financial year fully.

Bharat Bhagnani: Yeah.

Sanjeev Aggarwal: We are expecting that everything will get, let's say, hot and steam running. By the Q3 of this financial year fully. We are expecting more than double-digit rather growth in the revenue because of the price increase and the volume increase. Everything put together should give us good double-digit growth.

Speaker #4: And we are expecting more than double-digit growth in the revenue because of the price increase and the volume increase. Everything put together should give us good double-digit growth.

Speaker #5: Double so similar to what we did in till March 26 about somewhere about 10 11 11% 10 11%. Okay. Okay. And what should be the guidance for I know you don't provide much guidance but just trying to understand since the first quarter was a little little bit on the lower side in terms of the operating margin what can we expect for the whole year?

Bharat Bhagnani: Double digits. Similar to what we did till March 2026.

Sanjeev Aggarwal: That is it

Bharat Bhagnani: 10, 11%.

Sanjeev Aggarwal: That is it.

Bharat Bhagnani: 10%, 11%. Okay. What should be the guidance for I know you don't provide much guidance, but just trying to understand, since the Q1 was a little bit on the lower side in terms of the operating margin, what can we expect for the whole year?

Speaker #4: For the whole year, this will all be dependent on the raw material prices, of course. But we are trying to, let's say, maximize it—but yes, it may not be to the extent of what we have seen in the last financial year because of the first quarter.

Sanjeev Aggarwal: For the whole year, this will all be dependent on the raw material prices, of course. We are trying to, let's say, maximizing it. Yes, may not be to the extent of what we have seen in the last financial year because of the Q1.

Speaker #4: But yes, in the range of maybe about 10 to 11 percent or something like that, if I had to make a guess.

Sanjeev Aggarwal: Yes, in the range of maybe about 10% to 11% or something like that, if I have to make a guess.

Speaker #5: Got it. And so, final question on the balance sheet. Are we planning to increase any debt this year?

Bharat Bhagnani: Got it. Sir, final question on the balance sheet. Are we planning to increase any debt this year?

Speaker #4: There will be a slight increase in the debt because we are implementing projects, and the funds which we had earlier in cash have already been utilized.

Sanjeev Aggarwal: There will be somewhat increase in the debt because we are implementing projects.

Sanjeev Aggarwal: The funds which we had earlier in cash, that have already been utilized.

Speaker #4: So we are now generating internal accruals that are funding the projects. And also, somewhat, loans we will have to take in a progressive manner again.

Bharat Bhagnani: Right.

Sanjeev Aggarwal: We are now generating internal accruals that is funding the project. Also somewhat loans we will have to take in a progressive manner again.

Speaker #4: So to that extent—but again, we are repaying also a large amount of debt every year. So it will not be a big jump, but yes, because of certain operational requirements, the working capital increase has happened because of higher raw material and selling prices.

Bharat Bhagnani: Right.

Sanjeev Aggarwal: To that extent. Again, we are repaying also a large amount of debt every year.

Sanjeev Aggarwal: It will not be a big jump. Yes, because of certain operational requirements, the working capital increases happened because of higher raw material and selling prices. To that extent, I think some increase will be happening and some CapEx-led kind of disbursements. Broadly, I'm expecting that INR 500 to 700 crores overall in this financial year increase should be there.

Speaker #4: So to that extent, I think some increase will be happening and some capex-led kind of disbursements. So, broadly, I'm expecting that a ₹500 to ₹700 crore total fees overall increase should be there in this financial year.

Speaker #5: Okay. Okay. Got it.

Bharat Bhagnani: Okay. Got it.

Speaker #4: But this will provide a lot of the increased operating, let's say, EBITDA going forward in absolute terms. So, that will help in growing the business.

Sanjeev Aggarwal: This will provide a lot of the increased operating, let's say, the EBITDA going forward in absolute terms. That will help in growing the business.

Speaker #5: Okay. Okay. Okay. Thank you so much. Thank you.

Bharat Bhagnani: Okay.

Sanjeev Aggarwal: Thank you.

Bharat Bhagnani: Thank you so much. Thank you.

Speaker #4: Thank you.

Speaker #3: Thank you. The next question comes from the line of Chris Jane from NAFA Asset Managers. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Chirag Jain from NAFA Asset Managers. Please go ahead.

Operator: Thank you. The next question comes from the line of Chirag Jain from NAFA Asset Managers. Please go ahead.

[Analyst]: Hi, everyone. Sir, could you please point out what is the capacity utilization across your TBR passenger line, radial two, three wheelers and in the Mexico business, please?

Speaker #1: Yeah. Hi, everyone. So could you please point out what is the capacity utilization across your TBR, passenger line radial, Q3 wheelers, and in the Mexico business, please?

Krish Jain: Hi, everyone. Sir, could you please point out what is the capacity utilization across your TBR passenger line, radial two, three wheelers and in the Mexico business, please?

Speaker #2: Yeah. Our utilization has been, you know, around 95% in JK Tyre standalone, and consolidated around about 80%. We have been able to utilize nearly full capacity for truck radial tires, and 95% for passenger car tires, and Q3 wheeler was also nearly full utilization.

Sanjeev Aggarwal: Our utilization has been around 95% in the JK Tyre standalone and consolidated about 80%. We have been able to utilize nearly full capacity utilization for truck radial tires and 95% of passenger cars. The two, three-wheeler was also nearly full utilization. Non-truck bias, which we LCVs and farm, and that has been also a very sharp utilization towards 95-plus.

Speaker #2: And non-truck buyers, which are LCVs and farm, that has also seen a very sharp utilization towards 95-plus.

Speaker #1: Thank you. So, could you also explain—as you mentioned earlier—that in Q3 you'll have some capacities coming up? How much volume would that add over the financial year?

[Analyst]: Thank you. Could you please also confirm that you had mentioned earlier that Q3 you'll have some capacities coming up. How much volume would that add overall to this financial year?

Krish Jain: Thank you. Could you please also confirm that you had mentioned earlier that Q3 you'll have some capacities coming up. How much volume would that add overall to this financial year?

Speaker #4: Sorry, I can't get you. Can you please be louder?

Sanjeev Aggarwal: Sorry, I couldn't get you. Can you be please louder?

Speaker #1: Okay. Can you hear me now, sir? Hello.

[Analyst]: Okay. Can you hear me now, sir? Hello.

Krish Jain: Okay. Can you hear me now, sir? Hello.

Speaker #4: Yes please go on.

Sanjeev Aggarwal: Yes, please go on.

Speaker #1: Yeah, like you mentioned earlier, you'll have some capacities coming online by the third quarter of this financial year. I wanted to understand how much is going to be added in each of these categories.

[Analyst]: Yeah. Like you had mentioned earlier, you'll have some capacities coming online by Q3 of this financial year. I wanted to understand how much is going to be added in each of these categories.

Krish Jain: Yeah. Like you had mentioned earlier, you'll have some capacities coming online by Q3 of this financial year. I wanted to understand how much is going to be added in each of these categories.

Speaker #1: And since

Sanjeev Aggarwal: In this, with our plans of going upward towards INR 4,980 crores, which will entail passenger and truck radial, we will be adding 24%.

Speaker #2: So in this, with our plans of going upward towards ₹4,980 crores, which will entail passenger and truck radials, we will be adding 24%.

Sanjeev Aggarwal: In this, with our plans of going upward towards INR 4,980 crores, which will entail passenger and truck radial, we will be adding 24%.

[Analyst]: Yes, sir. That 24% is over the next 4 years. I was specifically looking for what is being added this financial year and maybe even the next financial year.

Krish Jain: Yes, sir. That 24% is over the next 4 years. I was specifically looking for what is being added this financial year and maybe even the next financial year.

Speaker #1: Yes, sir. But that 24% is over the next four years. I was specifically looking for what is being added this financial year, and maybe even the next financial year.

Speaker #4: So next financial year, addition will be mainly for the truck and bus radial tires, and also for passenger car balancing of various capacities at the Banmore tire plant we are adding.

Sanjeev Aggarwal: For next financial year, addition will be majorly for the truck and bus radial tires, and also for passenger car balancing of various capacities at Banmore tire plant we are adding. This will increase roughly around 7% of the total capacity the company has today.

Speaker #4: So, this will increase roughly around 7% of the total capacity the company has to have.

Speaker #1: Okay, sure sir. Final question on the EV tires. Just generally, across the industry, is it true that EV tires have a shorter replacement cycle? And maybe you could explain why?

[Analyst]: Okay. Sure, sir. Final question on the EV tires. Just generally across the industry, is it true that EV tires have a smaller replacement cycle? Maybe you could explain why.

Krish Jain: Okay. Sure, sir. Final question on the EV tires. Just generally across the industry, is it true that EV tires have a smaller replacement cycle? Maybe you could explain why.

Speaker #2: Yeah. EV tires are prone to heavy load so the the tire are is demanded to have better rolling resistance. So and the low actually the torque is very high.

Sanjeev Aggarwal: Yeah, EV tires are prone to heavy load, so the tire is demanded to have better rolling resistance. Actually, the torque is very high, so the wearing tire is high. It is worn out faster than a normal ICE tire.

Speaker #2: So the wear and tear is high. So it is worn out faster than a normal IC tire.

[Analyst]: Okay, sir. Comparable ICE tire, how much in percentage terms is the life shorter for EV tires?

Krish Jain: Okay, sir. Comparable ICE tire, how much in percentage terms is the life shorter for EV tires?

Speaker #1: Oh, so, okay. So, for a comparable ICE tire, by how much, in percentage terms, is the life shorter for EV tires?

Speaker #4: So, because of higher torque, there is a 5% to 10% difference in the life of these tires compared to ICE tires.

Sanjeev Aggarwal: Because of high torque as-

[Analyst]: 5% to 10%

Krish Jain: 5% to 10%

Sanjeev Aggarwal: 5% to 10% difference in the life of these tires compared to ICE tires. That also depends how the user is.

Speaker #4: That was different from how the users are.

Speaker #1: Okay. Okay. Yeah, sure sir. That's all from my side. Thank you for answering my questions, and all the best for the future. Thank you.

[Analyst]: Okay. Sure, sir. That's all from my side. Thank you for answering my questions, and all the best for the future. Thank you.

Krish Jain: Okay. Sure, sir. That's all from my side. Thank you for answering my questions, and all the best for the future. Thank you.

Speaker #2: Thank you. Thank you.

Operator 2: Thank you.

Sanjeev Aggarwal: Thank you.

Operator 2: Thank you. The next question comes from the line of Aditi Shah from Shah Capitals and Broking Limited. Please go ahead.

Operator: Thank you. The next question comes from the line of Aditi Shah from Shah Capitals and Broking Limited. Please go ahead.

Speaker #3: Thank you. The next question comes from the line of Aditi Shah from Shah Capitals and Broking Limited. Please go ahead.

Speaker #6: Good afternoon, sir. I want to understand on two fronts. Despite the Russia-Ukraine war and rising tire prices, there was still strong demand for the tire industry during Q1 FY27.

Aditi Shah: Good afternoon, sir. I want to understand on two fronts. Despite West Asia war and rising tire prices, there was still strong demand for tire industry during Q1 FY27. What was Q1 FY27 volume growth on standalone basis? Second is, what is our BMX on standalone basis versus volumes?

Speaker #6: So, what was Q1 FY27 volume growth on a standalone basis? And second, what is our bio-mix on a standalone basis, based on volumes?

Speaker #2: Our standalone basis the growth in volumes was 25% in the domestic and we see going forward that demand is very optimistic that we see a strong demand in rural and urban to come in and we are seeing a double digit growth coming in for ourselves.

Sanjeev Aggarwal: Our standalone basis growth in volumes was 25% in the domestic. We see going forward that demand is very optimistic, that we see a strong demand in the rural and urban to come in. We are seeing a double-digit growth coming in for ourselves.

Speaker #6: Sir, sequential quarter basis 25% is—why, oh why—and sequential?

Aditi Shah: Sir, sequential quarter basis, 25% is YoY. Sequential?

Speaker #2: The sequential will be roughly in terms of a mid-single digit.

Sanjeev Aggarwal: The sequential would be roughly in terms of a mid-single digit.

Speaker #6: Okay, okay. And our next market mix?

Operator 1: Okay. Our mix, market mix?

Aditi Shah: Okay. Our mix, market mix?

Speaker #4: Sorry.

Sanjeev Aggarwal: Sorry?

Speaker #6: Our market mix?

Aditi Shah: Our market mix?

Speaker #4: Market mix has been improving, particularly in the TCL segment, as we had mentioned earlier also. So this is better now. For 16 inch and above, we are roughly around 35% today.

Sanjeev Aggarwal: Market mix has been improving, particularly in the PCR segment, as we have mentioned earlier also. This is better now. For 16 inch and above, we are roughly around 35% today. Only for the PCR. If you talk about the product wise, the mix is like truck and bus is 56%, and the passenger car radial is 27%. Two-wheeler, three-wheeler is 5%, and others means industrial, farm, and others put together is 12%.

Speaker #4: Only for the PCR. But if you talk about the product price, the mix is like truck and bus is 56%, and passenger line radial is 27%.

Speaker #4: Two-wheeler and three-wheeler is 5%, and others, which means industrial, farm, and food—others put together—is 12%.

Speaker #6: Okay. Thank you.

Aditi Shah: Okay. Thank you.

Speaker #2: Thank you.

Sanjeev Aggarwal: Thank you.

Speaker #3: Thank you. The next question comes from the line of Vijay Kumar Pandey from Axis Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Vijay Kumar Pandey from Axis Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Vijay Kumar Pandey from Axis Capital. Please go ahead.

Vijay Kumar Pandey: Sir, thank you for allowing us follow-up. Sir, want to understand in terms of the pricing hike, you said we had taken around 5% price hike in Q1. Just want to understand how much of it has flown in Q1, and when was the price hike taken, particularly in Q1? Was it in early start of the year or towards the end of the quarter?

Vijay Kumar: Sir, thank you for allowing us follow-up. Sir, want to understand in terms of the pricing hike, you said we had taken around 5% price hike in Q1. Just want to understand how much of it has flown in Q1, and when was the price hike taken, particularly in Q1? Was it in early start of the year or towards the end of the quarter?

Speaker #1: Sir, thank you for allowing us to follow up. Sir, I want to understand, in terms of the price hike—you said we have taken around a 5% price hike in Q1.

Speaker #1: Just want to understand how much of it has flown in the quarter one, and when was the price hike taken, particularly in Q1? Was it at the early start of the year or towards the end of the quarter?

Sanjeev Aggarwal: No. Actually, this is on a monthly basis. We have been taking a small hike every month. This is not at the beginning or at the end of the quarter. This is on a monthly basis. We have been taking price hikes as, actually, generally balanced with the quantity of take, so that it does not destroy the

Speaker #4: No, I think actually this is on a monthly basis. We have been taking a small hike every month. This is not at the beginning or at the end of the quarter.

Speaker #4: So, on a monthly basis, we have been taking price hikes, which are generally balanced with the quantity of take, so that it does not destroy the apple cart. This has been easily absorbed, and we are very cautious about how much price hike we can take every month.

Vijay Kumar Pandey: Okay. Sir, I will call back in the case.

Vijay Kumar: Okay. Sir, I will call back in the case.

Speaker #4: So generally, the kind of terminology used is 'inching up the price.' This does not pinch the customer as well.

Speaker #1: Perfect. Okay. Okay. Okay, sir. Sorry. I'll fall back in the queue.

Speaker #3: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We have the next question from the line of Sohil Marwa, an individual investor.

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We have the next question from the line of Sohail Malwa, an individual investor. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We have the next question from the line of Sohail Malwa, an individual investor. Please go ahead.

Speaker #3: Please go ahead.

Speaker #4: Yeah. Hello, can you hear me?

Sohail Malwa: Yeah. Hello. Can you hear me?

Speaker #2: Yes please.

Operator 2: Yes, please.

Sanjeev Aggarwal: Yes, please.

Speaker #1: Yes sir.

Speaker #4: Yeah, thanks for the conference call. I just have one easy question, a quick question. Do you see rubber prices, natural rubber prices, RSS-4 prices in India trending downwards after the monsoon?

Sohail Malwa: Yeah. Thanks for the conference call. I just have one easy question, quick question. Do you see natural rubber prices, RSS4 prices in India, trending downwards from after the monsoon? Do you think rubber prices will be closer to INR 230 per kg in the case of RSS4 by the end of the year?

Speaker #4: Do you think rubber prices will be closer to ₹230 per kg in the case of RSS4 by the end of the year?

Speaker #2: Yeah, we are already seeing rubber prices soften in India. So, we are seeing, for this, it has definitely fallen; this will fall, this will fall down in the next quarter.

Sanjeev Aggarwal: Yeah. We are already seeing rubber prices, too softened, in India. We are seeing, this has definitely fallen. This will fall down the next quarter.

Sohail Malwa: Okay. Thank you.

Sanjeev Aggarwal: There is something happening.

Speaker #2: Very something happening.

Speaker #4: Okay. Superb. So I guess that would mean that would result in an increase in margins as well for us going ahead.

Sohail Malwa: Okay, super. I guess that would mean that would result in an increase in margins as well for us going ahead.

Speaker #2: Yes. Yes. Yes.

Sanjeev Aggarwal: Yes.

Speaker #4: Oh, superb. Superb. Thank you, madam.

Sohail Malwa: Oh, super. Thank you, Madan.

Speaker #3: Thank you. Participants who wish to ask a question may press star and one. We have the next question from the line of Digan Shah from DAM Capital.

Operator 2: Thank you. Participants who wish to ask a question may press star one. We have the next question from the line of Digant Shah from DAM Capital. Please go ahead.

Operator: Thank you. Participants who wish to ask a question may press star one. We have the next question from the line of Digant Shah from DAM Capital. Please go ahead.

Speaker #3: Please go ahead.

Speaker #1: Hi, thank you for taking my question. I just wanted some more clarity on your Mexico business. So, our Mexico business has reported a decline of almost 82%, and in some of the articles I read, there were some strikes in the Mexico plant.

Digant Shah: Hi. Thank you for taking my question. I just wanted some more clarity on your Mexico business. Our Mexico business has reported a decline of almost 82%. In some of the articles I read, there were some strikes in the Mexico plant. Just wanted to understand that going forward, has the production normalized and would we see the same revenue which we clocked in Q3 or Q4, or it will take time to get the production normalized?

Speaker #1: So, I just wanted to understand: going forward, has the production normalized, and will we see the same revenue that we clocked in Q3 or Q4, or will it take time for production to normalize?

Speaker #4: Thank you. First of all I want to make a small correction that it was not a strike it was a slowdown. And secondly as far as going forward the same kind of production has already started and we are now back with a bang but of course it may take a little more few days but then at the end of the year we are hoping that we will be able to turn out more or less similar top line and then let's see how much we can because you know the passing on of the prices in Mexico is little more difficult than it is in India.

Sanjeev Aggarwal: Thank you. First of all, I want to make a small correction, that it was not a strike, it was a slowdown. Secondly, as far as going forward, the same kind of production has already started and we are now back with a bang. Of course, it may take a little more, a few days, at the end of the year, we are hoping that we will be able to turn out more or less similar top line, and then let's see how much we can, because the passing on of the prices in Mexico is a little more difficult than it is in India. We are completely at it and we hope to give you better results.

Speaker #4: But we are completely at it, and we hope to give you better results.

Speaker #1: Okay, thank you. And just to follow up, is there any update on the US NCA? What is the update or the status of it?

Digant Shah: Thank you. Just a follow-up. Any update on the USMCA? What is the update or the status of it?

Speaker #4: Yes, the US NCA agreement has been renewed for 10 years, and therefore we are hoping that the relations between Mexico and the USA in terms of the duties structure are going to be favorable towards Mexico.

Sanjeev Aggarwal: Yes. The USMCA agreement has been renewed for 10 years. Therefore, we are hoping that the relations between Mexico and USA in terms of the duty structure is going to be favorable towards Mexico, unlike some of the agreements that USA has had with other countries.

Speaker #4: Unlike some of the agreements that the USA has had with other countries.

Speaker #1: Okay. Thank you. That's helpful.

Digant Shah: Okay. Thank you. That's helpful.

Speaker #3: Thank you. Participants who wish to ask a question may press star and one. As there are no further questions, I would now like to hand the conference over to management for closing comments.

Operator 2: Thank you. Participants who wish to ask a question may press star and one. There are no further questions, I would now like to hand the conference over to management for closing comments. Thank you, over to you.

Operator: Thank you. Participants who wish to ask a question may press star and one. There are no further questions, I would now like to hand the conference over to management for closing comments. Thank you, over to you.

Speaker #3: Thank you, and over to you.

Speaker #4: Yeah. Thank you so much for joining us for this quarter one conference call and hope we have answered your questions to your satisfaction. And if you have any other further question you can write it back to me and we will be happy to answer that.

Sanjeev Aggarwal: Yeah. Thank you so much for joining us for this Q1 conference call. We hope we have answered your questions to your satisfaction. If you have any other further question, you can write it back to me, we will be happy to answer that. Thank you so much for joining us. Thank you.

Speaker #4: Thank you so much for joining. Thank you.

Speaker #3: Thank you. On behalf of MK Global Financial Services Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.

Operator 2: Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, you may now disconnect your lines.

Operator: Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, you may now disconnect your lines.

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Q1 2027 JK Tyre & Industries Ltd Earnings Call

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