JK Tyre Approves Rs 1,130 Crore Capacity Expansion by FY28 

Strategic Investment Across Key Tyre Segments
JK Tyre & Industries Ltd has announced a major expansion plan with a Rs 1,130 crore investment to boost production of truck and bus radial (TBR), all-steel light truck radial (LTBR), and passenger car radial (PCR) tyres. The company expects the additional capacity to be operational by the second quarter of FY28, strengthening its position in both domestic and international tyre markets.

Plant-Wise Capacity Augmentation
The expansion will include increased TBR output at Vikrant Tyre Plant and Laksar Tyre Plant, while LTBR capacity will be enhanced at the Vikrant facility. For passenger car radial tyres, the Banmore Tyre Plant will see an additional production boost. This expansion is projected to raise JK Tyre’s overall capacity by approximately 6.5%, adding nearly 13.5 lakh tyres annually. The funding will come from a combination of internal accruals and debt.

Strong Financial Performance Supports Expansion
JK Tyre’s announcement comes on the back of a robust financial quarter. In December 2025, the company reported a 3.7-fold increase in net profit to Rs 209 crore, compared with Rs 57 crore a year earlier. Consolidated revenue stood at Rs 4,235 crore, while EBITDA rose to Rs 583 crore, translating to a margin of 13.8%, a year-on-year improvement of 470 basis points. The growth was driven by product premiumisation, operational leverage, and stable raw material costs.

Broad-Based Domestic Recovery
The domestic business recorded a 16% year-on-year growth, driven by strong demand in both original equipment manufacturer (OEM) and replacement tyre channels. Replacement tyre demand grew 12%, while OEM sales surged 27%, reflecting a healthy recovery across multiple segments.

Leadership Perspective
Chairman and Managing Director Raghupati Singhania highlighted the significance of the results, noting that they reflect supportive demand conditions fueled by GST-led reforms, festive buying, and improved rural sentiment. “Our strategy to expand capacity aligns with growing demand in key segments and supports JK Tyre’s long-term growth ambitions,” he stated.

Outlook and Market Implications
With this Rs 1,130 crore expansion, JK Tyre aims to consolidate its leadership in the TBR, LTBR, and PCR segments, meeting both domestic and export market demand. The additional capacity, scheduled to be fully operational by Q2 FY28, is expected to enhance the company’s competitiveness and operational efficiency, while leveraging favorable market conditions and a robust financial position.