JK Tyre lifts capex budget to ₹6,110 crore through FY29
Management clarified that a new ₹4,980 crore expansion is additive to existing plans, while warning of an 18-19% spike in raw material costs for Q1.
— 1 earlier story on JK Tyre & Industries Ltd. →What's new
- Total capex budget is now ₹6,110 crore, combining a new ₹4,980 crore plan with a prior ₹1,130 crore project.
- Management expects raw material costs to jump 18-19% in Q1 FY27.
- The company plans price hikes of up to 7% in replacement and export markets to protect margins.
Why this matters
The clarification on capex sequencing removes ambiguity about the company's investment scale, which is now significantly larger than previously signaled. With raw material costs set to rise sharply, the company's ability to push through 7% price hikes will determine if it can sustain the momentum from its record revenue year.
What we're watching
- Whether the 7% price hikes are accepted by the market without hurting volume.
- Actual Q1 FY27 margin performance against the projected cost spike.
- Progress updates on the expanded ₹4,980 crore capacity project.
The full read
JK Tyre is significantly scaling up its investment plans. Management confirmed that the new ₹4,980 crore expansion project is additive to the previously announced ₹1,130 crore budget, bringing the total capital expenditure commitment to ₹6,110 crore through FY29. This reversal of earlier guidance clarifies that the company is pursuing a more aggressive capacity build-out than the market previously assumed. The timing of this expansion coincides with a challenging cost environment, as management projects an 18-19% spike in raw material costs for Q1 FY27. To defend its margins, the company is pushing through price hikes of up to 7% in its replacement and export segments. While the company is coming off a record year with ₹16,384 crore in revenue and a 83% jump in Q4 net profit to ₹188 crore, the next few quarters will test its pricing power in a rising-cost environment.
Questions answered
- How does the new capex plan change the company's total investment?
- The total projected capex through FY29 is now ₹6,110 crore. This includes a new ₹4,980 crore expansion added to a previously announced ₹1,130 crore project.
- What is the primary headwind management identified for the coming quarter?
- Management expects raw material costs to increase by 18-19% in Q1 FY27.
- How does the company plan to offset the rising raw material costs?
- The company is implementing staggered price hikes of up to 7% across its replacement and export markets.
- What were the company's recent financial results?
- JK Tyre reported a 83% increase in Q4 net profit to ₹188 crore, contributing to a record annual revenue of ₹16,384 crore for the year.
Story so far
All notes on JKTYRE →- 27 May 2026 · 5:11 PM IST JK Tyre lifts capex budget to ₹6,110 crore through FY29
- 1d ago JK Tyre to spend ₹4,980 crore on capacity expansion