World · India Bureau
MRF shares rally on Q2 results; analysts predict margin turnaround
MRF's second-quarter operational revenue climbed nearly 18 per cent to ₹8,524 crore, though expense growth outpaced sales gains. Centrum Securities remains optimistic about the tyre manufacturer's margin recovery prospects.
LSN India ·
Shares of MRF Ltd gained ground following the release of its second-quarter financial results, with brokerages pointing to tentative signs of operational improvement in the troubled tyre sector.
The company reported operational revenue of ₹8,524 crore for the quarter, reflecting growth of approximately 18 per cent from the year-ago period. However, total expenses rose by more than 22 per cent, outpacing the pace of revenue expansion and raising concerns about near-term profitability.
Despite the expense headwind, Centrum Securities maintained a constructive view of MRF's outlook, suggesting that operating margins may stabilize in coming quarters as input cost pressures ease and pricing power improves across the domestic tyre industry.
The tyre sector has faced sustained headwinds from elevated raw material costs and competitive pricing dynamics. MRF's ability to navigate these challenges while maintaining volume growth will be closely watched by investors and analysts tracking the company's path to margin recovery.