MRF Q1 profit slides 12% YoY to Rs 500.5 cr

New Delhi, August 12, 2025: A 12% year-on-year decline in consolidated net profit was reported by MRF for the first quarter of the current fiscal year. The consolidated profit after tax (PAT) was recorded at Rs 500.5 crore, a decrease from the Rs 571.02 crore reported in the same period a year earlier. This decline was announced despite a nearly 7% increase in the company’s revenue.

The company’s consolidated revenue from operations for the quarter stood at Rs 7,675.69 crore, a notable increase from Rs 7,196.45 crore in the year-ago quarter. This growth in revenue, however, was not enough to offset the increase in expenses, which led to the contraction in profits. A weaker operational performance was indicated by a 7.62% year-on-year decrease in EBITDA (earnings before interest, taxes, depreciation, and amortization), which came in at Rs 1,071 crore. The EBITDA margin also shrunk to 13.96% from 16.11% in the corresponding quarter of the previous fiscal year.

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The pressure on margins is attributed to elevated input and operational costs, a factor that has been highlighted in the company’s financial report. On a standalone basis, a more pronounced decline in net profit was seen, with a 14% year-on-year drop to Rs 484.23 crore. The standalone revenue from operations, on the other hand, increased to Rs 7,560.28 crore from Rs 7,077.84 crore in the same period last year.

The company’s balance sheet, however, was shown to be solid. As of June 30, 2025, the consolidated net worth was reported at Rs 18,999.96 crore, while the consolidated debt-equity ratio stood at 0.03, which is an improvement from the 0.04 recorded in the year-ago period.

Following the announcement of the quarterly results, a negative reaction was observed in the stock market. MRF’s shares were trading lower, with a decline of over 1% being noted on the BSE. This market response can be attributed to the profit decline, which overshadowed the positive revenue growth. The results, which were released during market hours, were met with caution by investors, and a period of analysis is expected to follow as the market digests the financial data.