Goodyear India Q1 FY27: 18% revenue growth, but PAT down 54% YoY as margins compress

Goodyear India's standalone Q1 FY27 (quarter ended June 30, 2026) revenue from operations rose 18.0% YoY to ₹774.35 Cr (₹656.22 Cr a year ago) and 25.7% QoQ (₹616.28 Cr in Q4 FY26). Reported net profit fell 53.9% YoY to ₹6.51 Cr (₹14.11 Cr) and 32.8% QoQ (₹9.69 Cr), with EPS at ₹2.82 versus ₹6.12 and ₹4.20 respectively. No consensus estimate could be located for this specific print — results were announced today and the stock does not appear to carry regular brokerage preview coverage — so vsStreet is unknown; the company also has no formal management guidance on record in our data or in public sources, so the print cannot be benchmarked against a prior outlook.

The headline PAT number is flattered by a one-off. Profit before exceptional items and tax was just ₹0.52 Cr this quarter (₹18.96 Cr a year ago), and the ₹8.70 Cr PBT was reached only because of a ₹8.18 Cr exceptional credit — a reversal of past-service cost on gratuity/compensated-absence obligations that the company had recognised in FY26 following the Labour Codes notified in November 2025 (per note 4 to the filing). Stripping this out and applying the quarter's own ~25% effective tax rate, adjusted PAT works out to roughly ₹0.4 Cr — a ~97% YoY decline from ₹14.11 Cr, versus the 53.9% drop in reported PAT. Net profit margin (PAT/total income) compressed to 0.83% from 2.13% a year ago and 1.56% in Q4 FY26. The squeeze traces to cost of materials consumed rising 36.6% YoY to ₹365.21 Cr (₹267.37 Cr), well ahead of 18% revenue growth, alongside finance costs more than doubling to ₹2.65 Cr (₹1.26 Cr); total expenses grew 21.5% YoY, outpacing revenue.

The stock went into the print at ₹817.55, up 3.9% over the past month of trading.

For context: revenue is at a 6-quarter high.

The board approved the unaudited results at its August 12, 2026 meeting alongside a limited review report from Deloitte Haskins & Sells that raised no qualifications. The only other development in the quarter was a routine product launch (Ultra Grip tractor tyre, July 1) and the standard pre-results trading-window closure; neither has a quantifiable bearing on this print. No management press release accompanying the results was available in the context to cross-check the company's own framing of the quarter.