JK Tyre Targets Double-Digit Growth in FY2026, Targets INR 10 Billion CAPEX
- By Nilesh Wadhwa
- August 08, 2025
JK Tyre & Industries is aiming for double-digit revenue growth in FY2026, outpacing its forecast for single-digit expansion across the broader tyre industry. Managing Director Anshuman Singhania outlined the company’s ambitions during a post-earnings media call, underscoring confidence in demand recovery and strategic market positioning.
Q1 Performance Overview
For the first quarter of FY2026, JK Tyre reported revenue of INR 38.91 billion, with EBITDA at INR 4.24 billion, translating to a margin of 10 percent. Net profit stood at ₹1.55 billion — up 51 percent compared with the previous quarter, but down 21 percent YoY.
Singhania attributed the annual decline to muted original equipment (OE) demand, particularly in truck and bus radial (TBR) volumes, alongside higher raw material costs compared to the same period last year. He also highlighted an adverse impact from the company’s Tornel business in Mexico, which faced uncertainty due to tariffs on exports from Mexico to the United States, dampening volumes.
Resilience in Domestic and Export Markets
Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, said, “The growth momentum in domestic markets remained robust in Q1, with JK Tyre clocking a sales growth of 11 percent YoY, as contributed by a steady demand for our products in both replacement as well as OE segments, underscoring JK Tyre’s continued focus on core growth drivers and strengthening market presence.”
“Despite a challenging and uncertain macro-economic environment, exports of passenger car tyres witnessed a strong traction both on QoQ and YoY basis, signifying pull for our products and enhanced brand perception in the global markets,” said Dr Singhania.
Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.
Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.
Regarding trade tensions between India and the US, Anshuman Singhania noted that exports from India to the US account for only around 3 percent of JK Tyre’s revenue and could be redirected to markets such as Mexico, Latin America, Brazil and the UAE if required. With zero tariffs in Mexico, JK Tyre can utilise its production base there to meet demand for both passenger and truck radials. The EU and UK, where JK Tyre holds a strong position in the TBR segment, also remain tariff-free.
Capacity expansion
The company’s INR 14 billion capital expenditure plan is progressing on schedule, covering passenger car radial (PCR), TBR and all-steel truck radial projects. For the year, investment is expected to total INR 9-10 billion, aimed at boosting production capacity by 30-40 percent.
A key driver for future profitability is the shift towards premium products. The share of 16-inch and above passenger car tyres in JK Tyre’s portfolio has grown from 18 percent in FY2020 to 25 percent in FY2025, with a target of 40-45 percent over the next two to three years. This change is being fuelled by rising SUV sales, larger rim sizes in entry-level cars and strong export demand.
The company has also developed a complete range of tyres for electric vehicles, spanning commercial truck radials, bus tyres, passenger radials and two/three-wheeler tyres Major OEMs such as Ashok Leyland’s Switch Mobility and Tata Motors are sourcing these products, including for last-mile connectivity vehicles and newly launched EV buses.
Market Outlook
The replacement market has been a bright spot, with passenger radial volumes up 32 percent year-on-year and truck radial volumes growing in the high single digits. JK Tyre expects demand to strengthen in the second half of FY2026, supported by infrastructure development, a favourable monsoon, potential interest rate cuts, and improved consumer liquidity.
Anshuman Singhania stressed that the worst of raw material price pressures appear to be over, paving the way for margin improvement as the product mix shifts and capacity utilisation rises. With the small car segment’s gradual decline offset by growth in premium categories, JK Tyre remains confident in sustaining momentum.
“Overall, India is poised for growth,” Singhania concluded. “We see positives across the board — from infrastructure push to evolving consumer preferences — and we are well-positioned to capitalise on these trends.”
Continental Appoints Managers For Global Purchasing And Original Equipment Business
- By TT News
- October 07, 2025
Continental's Tires group sector has strengthened its leadership team with two key internal appointments, effective 1 September 2025. Jana Striezel has been named the new head of global purchasing for Continental Tires, while Dennis Bellmund has assumed leadership of the global original equipment business for both passenger and commercial vehicles. Both executives will report directly to Christian Kötz, the member of Continental AG's Executive Board who leads the Tires group sector.
In her new capacity, Striezel will oversee worldwide strategic and operational purchasing. She brings extensive experience from the automotive industry, having previously held several procurement management roles at Renault, where she led purchasing for the Renault brand and its alliance with Nissan and Mitsubishi in Europe. Her career began at Volkswagen in 2014.
Bellmund, who has a 25-year tenure with Continental, steps into his role following the departure of his predecessor, Manja Greimeier, to the ContiTech sector. His extensive background within the company includes recent responsibility for Continental’s tyre retail operations, alongside prior leadership roles in EMEA supply chain management and sales direction for the European replacement tyre business. These appointments signal a strategic reinforcement of Continental's tyre division leadership.
Kötz said, “We’re delighted to welcome Jana Striezel, a highly skilled manager, to our team. She brings extensive expertise in international procurement and will focus on driving forward our purchasing strategy. In Dennis Bellmund, our global original equipment business has gained a highly experienced leader. Thanks to his many years at Continental, he is familiar with our company and our customers’ needs from many different angles. On behalf of the entire management team, I wish both of them every success in their new roles and look forward to working together.”
“On behalf of the entire team, I would like to thank Manja Greimeier for her successful leadership of our original equipment business and wish her all the best and continued success,” added Kötz.
In a significant leadership update, LD Carbon (LDC) has announced a restructuring of the chief executive office at the company. The company confirmed that Seong-Moon Baek will now serve as the sole CEO. This move follows the departure of former co-CEO Yong-Kyung Hwang from the executive position.
The change is effective immediately as the company continues to advance its initiatives in the sustainable materials sector. Chief Commercial Officer Bumseek Kim (BK) formally communicated the development in a statement, saying, “Should you have any questions, please feel free to contact me at any time.”
Jo Dennis Named MD At WF Recycle-Tech
- By TT News
- October 07, 2025
WF Recycle-Tech has announced a significant leadership transition with Jo Dennis assuming the role of Managing Director, succeeding Founder Paul Neville.
Dennis brings extensive experience in manufacturing and tyre pyrolysis, with a proven track record in guiding businesses through scale-up, growth and operational improvement phases. His leadership will be instrumental as the company advances its patented pyrolysis technology, which converts end-of-life tyres into valuable products like oil, syngas and recovered carbon black. Shareholders Farrel Pomini and HF GROUP endorse this technology and support its full-scale commercialisation and global deployment.
The company expressed gratitude to Neville for his foundational decade of service and for developing the core patented technology. He will continue to contribute to the growing team in a consulting capacity, focusing on new business opportunities.
The company statement read: “We would like to thank Paul for his many years of commitment and service as Founder and Managing Director over the last decade, and also congratulate him for his achievements in developing the patented technology upon which WFRT will now build its business. We are also pleased to retain Paul in our growing team in a consulting capacity to support and develop new business opportunities.”
VIPO a.s., a Slovakian manufacturer of bead winding and apexing machinery for tyre production, has established a wholly owned subsidiary in India to capitalise on growing demand in one of the world's largest automotive markets.
VIPO INDIA PRIVATE LIMITED commences operations on 1 October from New Delhi, providing technical support, spare parts production, and customer service to tyre manufacturers across the country, the Partizánske-based company said in a statement.
The move represents a significant expansion for the mid-sized engineering firm, which supplies automation equipment to tyre makers globally. India's tyre industry has expanded rapidly in recent years, driven by robust vehicle sales and infrastructure development.
"The launch of VIPO INDIA PRIVATE LIMITED is a milestone in our global expansion," said Peter Duchovic, chief executive of VIPO a.s. "India represents not only one of the fastest-growing tyre and automotive markets but also a hub of innovation."
The subsidiary will offer locally produced components for high-wear parts and provide digital services including artificial intelligence-driven condition monitoring and augmented reality-based training programmes, the company said.
VIPO specialises in bead winding lines - equipment used to produce the steel wire bundles that anchor tyres to wheel rims. The company stated that its systems incorporate robotics and automation to reduce energy consumption and enhance production efficiency.
"With our New Delhi subsidiary, we will be closer to our customers — listening carefully to their requirements and integrating their needs into the development of new devices and services," Duchovic said.
The firm has committed to the Science Based Targets initiative, a framework for corporate emissions reductions aligned with climate science, according to the statement.
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