Chennai: JK Tyre has announced one of the largest capacity expansion programmes among Indian tyre manufacturers, despite concerns over the impact of the West Asia crisis on raw material prices. The company has earmarked Rs 4,980 crore to expand the capacities of its Truck and Bus Radial (TBR) and Passenger Car Radial (PCR) tyre businesses at the Chennai factory and Vikrant tyre plant in Mysuru.
Investment Details
About 90% of the planned capital expenditure will be directed towards the Chennai facility. The proposed investment, to be funded through a combination of internal accruals and debt, will be implemented over three years. The expansion will increase the company’s TBR and PCR tyre capacities by 24%, management said while discussing its Q4 FY26 and FY26 performance with the media.
Capacity Expansion Breakdown
TBR capacity will be expanded at both the Vikrant plant in Mysuru and, to a lesser extent, at the Chennai facility. The entire PCR capacity expansion under this phase will be undertaken at the Chennai plant.
Drivers of Expansion
The expansion is being driven by robust domestic demand across tyre categories and is aimed at strengthening its market position and supporting future growth. Export demand has also been factored into the expansion plans.
The company’s installed capacity, including projects currently under implementation, stands at 210 lakh tyres per annum, with utilisation levels exceeding 90%.
Impact of West Asia Crisis
Management said the West Asia crisis has led to higher raw material costs and logistical disruptions for exports due to shipping constraints. To protect margins, JK Tyre has already implemented price hikes of 4% to 5% in the replacement market and may consider a further increase of 5% to 6% if cost pressures continue.
Financial Performance
For FY26, JK Tyre reported record consolidated revenue of Rs 16,384 crore, up 11% year-on-year. Consolidated EBITDA rose 25% to Rs 2,089 crore with a margin of 12.8%, while PAT increased 50% to Rs 774 crore.
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