MRF Q2 results 2026: profit falls 26.6%
MRF reported consolidated revenue of Rs 8,660.19 crore and profit after tax of Rs 386.99 crore for the quarter ended 30 September 2026.
Published 11 November 2026 · Potoos Research Services
The short answer. MRF's consolidated profit fell 26.6% from a year earlier, while revenue rose 17.4%. The company said higher raw-material prices hurt profitability. Its board approved these unaudited results on 10 November 2026.
Quarter at a glance
Consolidated figures in Rs crore. Change compares the same quarter a year earlier.
| Measure | Jul-Sep 2026 | Jul-Sep 2025 | Change |
|---|---|---|---|
| Revenue from operations | 8,660.19 | 7,378.72 | +17.37% |
| Other income | 131.39 | 110.28 | +19.14% |
| Total expenses | 8,269.77 | 6,788.55 | +21.82% |
| Profit before tax | 521.81 | 700.45 | -25.50% |
| Profit after tax | 386.99 | 527.43 | -26.63% |
Source: MRF financial results, PDF page 9. Percentages use the original figures before rounding.
Consolidated means the company and the entities included in its group accounts. Revenue from operations is income from its main business. Other income is reported separately. Profit after tax is what remains after recorded costs and tax. Q2 FY27 means July to September 2026, the second quarter of the financial year ending March 2027.
Why did profit fall when revenue rose?
MRF's 10 November press release attributes the pressure to a steep rise in raw-material prices amid global uncertainty. The company says its own price increases and cost-saving measures partly reduced that pressure.
The results show material costs of Rs 6,552.57 crore, against Rs 4,577.49 crore a year earlier. The inventory adjustment reduced expenses by Rs 718.86 crore this quarter, compared with an expense of Rs 67.54 crore a year earlier. Inventory means goods and materials held by the business. This accounting adjustment changes recorded expenses; it is not a cash payment. The filing and press release do not separately explain the swing in this quarterly inventory adjustment or the increase in other income.
Total expenses still rose faster than revenue. There was no exceptional item, a separately shown unusual gain or charge, in either comparison quarter. Tax was Rs 134.82 crore, against Rs 173.02 crore, so the fall in profit came before tax as well.
What does the six-month cash-flow statement show?
For April to September 2026, cash generated from operating activities was Rs 634.16 crore, compared with Rs 1,869.48 crore a year earlier. This covers six months, not only the quarter in the table.
The cash-flow statement on PDF page 11 records a Rs 1,219.67 crore cash outflow from working-capital changes, against Rs 194.06 crore. Working capital includes stocks held, amounts owed to the business and amounts it owes suppliers.
Within that movement, finished-goods inventories used Rs 752.09 crore of cash, and raw materials and other inventories used Rs 994.24 crore. Operating profit before working-capital changes was also lower, at Rs 2,000.75 crore against Rs 2,268.54 crore. This is a step in calculating operating cash flow, before changes in inventories, customer and supplier balances, and tax paid. These entries explain why cash generation was lower over the six-month period.
Interim dividend in the same filing
The covering letter on PDF page 1 also says the board declared an interim dividend of Rs 3 per equity share of Rs 10 face value, shown as 30%, for the financial year ending March 2027. The record date is Tuesday, 17 November 2026, and the dividend will be paid on or after 1 December 2026. The record date is the date the company uses to identify eligible shareholders. When checked on 10 November, NSE's corporate-actions list did not yet show an ex-date for this dividend.
Keep the reporting basis consistent
The headline and table use consolidated profit. MRF's standalone profit, which covers the parent company separately, was Rs 369.15 crore. It is a different figure and is not used in the headline comparison.
The results notes say earlier consolidated periods were regrouped to match the current presentation following the consolidation of MRF Foundation. The comparison here uses the figures in this new filing. The results were subject to a limited review, a narrower check than a full audit.
Sources
- MRF unaudited financial results, 30 September 2026. 2026-11-10 PDF pages 1-3, 5-6, 7-12; main consolidated table p9; cash flow p11; notes p12.
- MRF press release on Q2 financial performance. 2026-11-10 PDF page 2, Financial Performance and Operations.
Sources checked on 10 November 2026. Information cutoff: 10 November 2026, 19:00 IST
Common questions
Does the 26.6% fall refer to revenue?
No. It refers to consolidated profit after tax. Consolidated revenue from operations rose 17.4% from the same quarter a year earlier.
Is Rs 634.16 crore the cash generated in Q2 alone?
No. That figure covers April to September 2026, a six-month period. The quarterly profit table covers July to September 2026.
Potoos Research, SEBI-registered Research Analyst. Registration number INH000027380. SEBI is the Securities and Exchange Board of India.