JK Tyre Q2FY27: consolidated PAT falls 71% YoY to ₹65 Cr despite record ₹4,841 Cr revenue

JK Tyre's consolidated revenue hit a record ₹4,840.73 Cr for the quarter, up 20.7% YoY and 22.7% QoQ, but consolidated PAT fell to ₹65.07 Cr, down 71.3% YoY from ₹226.86 Cr a year ago (up 47.6% QoQ off Q1's depressed ₹44.09 Cr base). Standalone PAT was ₹60.68 Cr on standalone revenue of ₹4,452.06 Cr. Stripping out exceptional items on both sides (this quarter's ₹6.15 Cr FX loss plus ₹6.16 Cr VRS cost vs a ₹7.48 Cr net exceptional charge a year ago), the YoY PAT decline narrows only to roughly -67%, confirming the drop is driven by underlying margin pressure, not one-offs. EBITDA margin came in at 7.1% (₹343 Cr EBITDA), down sharply from 12.8% a year ago, though up from 6.8% in Q1FY27 (EBITDA +28% QoQ). Net profit margin compressed to 1.3% from 5.6% YoY. Management attributes the squeeze to persistently elevated raw-material costs and container freight rates "significantly above historical levels," plus a "challenging" operating environment from geopolitical tensions in West Asia. Mexico subsidiary JK Tornel contributed ₹479 Cr of revenue this quarter, which the company calls a rebound after prior pressure. Against management's own August 2026 guidance of FY27 revenue growth of 10-11% and full-year operating margin of 10-11% (with H2 recovery to 11-13% contingent on RM costs stabilizing), this quarter's 20.7% YoY revenue growth — fuelled by GST 2.0-led demand (OE market +65% YoY, domestic sales +32% YoY per the press release) — comfortably beats the topline guidance, but H1FY27 operating margin of roughly 6.9% sits well below the 10-11% full-year target, leaving the promised H2 margin recovery unproven two quarters in. No Q2-specific Street estimate was found; full-year FY27 consensus (sharpely.in) had pencilled in roughly 15-20% PAT growth, a bar that looks increasingly stretched after H1FY27 PAT of ₹109.16 Cr versus ₹390.21 Cr a year earlier (-72% YoY). Separately, the company disclosed a ₹94.86 Cr GST show-cause notice on October 13, 2026, which does not appear reflected as a provision in this quarter's exceptional items. CMD Dr. Raghupati Singhania's press statement frames the quarter as "remarkable progress" toward higher profitability on "broad-based" growth, but stops short of reaffirming the FY27 margin guidance, and the company's own description of the environment as "challenging" is consistent with the still-compressed margins in the actual numbers — tempering the headline "highest-ever revenue" framing.