MRF's revenue grows, but profits fall: What's happening?
MRF, a leading tire maker in India, saw its share price drop by 2.3% to ₹1,43,350 on Tuesday—even though its revenue for the June 2025 quarter grew compared to last year.
The catch? Profits actually fell during the same period.
More sales don't always mean bigger profits
It's a reminder that more sales don't always mean bigger profits (or happier investors).
While MRF pulled in ₹7,675 crore this quarter (up from ₹7,196 crore last year), net profit slid to ₹500 crore from ₹571 crore.
For the full year too, revenue rose but profit dipped.
Investors had high hopes
Investors had high hopes—MRF trades at a premium with a P/E ratio of 34.6—but shrinking profits made them nervous.
So even with solid sales and generally upbeat analyst vibes earlier this month, the market reacted to those thinner margins and sent the stock down.