Investor sentiment was buoyed by a sharp jump in profitability and a meaningful improvement in operating margins, signalling that the company is benefiting from a favourable demand environment and improved cost efficiency. MRF reported a net profit of Rs 691 crore for the quarter, more than doubling from Rs 316 crore in the corresponding period last year.
The strong earnings performance came despite a rise in expenses, underscoring the impact of operating leverage and better execution.
Revenue for the quarter grew 15% year on year, supported by steady demand across segments. EBITDA surged 68% from a year earlier to Rs 1,399 crore, compared with Rs 834 crore in the same quarter last year.
This sharp rise in operating profit led to a significant expansion in margins, with EBITDA margin improving to 17.4% from 11.9% a year ago, marking one of the strongest margin performances for the company in recent quarters.
Total expenses during the quarter stood at Rs 7,180 crore, up from Rs 6,675 crore in the year-ago period, reflecting higher input and operating costs. However, the pace of revenue growth and margin expansion more than offset the increase in expenses, allowing profits to scale sharply.
Adding to the positive sentiment, MRF announced a second interim dividend of Rs 3 per equity share, equivalent to 30%, for the financial year ended March 2026. The company has fixed February 13, 2026, as the record date to determine shareholders eligible for the dividend. The payout is scheduled to be made on or after February 27, 2026.The results reinforced confidence in MRF’s ability to protect margins and generate strong cash flows even in a volatile cost environment. The sharp stock reaction also reflects renewed interest in quality manufacturing names that are delivering consistent earnings growth.
At Rs 1,47,140, MRF remains one of the most expensive stocks by absolute price on Dalal Street, but the latest results suggest that investors are willing to look past the headline price tag as long as earnings momentum remains strong.
