MRF tax demand falls to INR 361.9 million: what it means for MRF stock

Published on 10/14/2026 at 03:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

June-quarter revenue rose 9.60 percent to INR 84,155.0 million. MRF stock sees an INR 553.4 million tax reduction.

Tax order and earnings trend

Kerala's tax authority reduced MRF's demand to INR 361.9 million on October 6, 2026.
June-quarter revenue rose 9.60 percent to INR 84,155.0 million.
Fiscal 2026 net profit reached INR 24,260.0 million after a 30.00 percent increase.

MRF, INE883A01011, Illustration mit AI erstellt.

MRF tax demand fell to INR 361.9 million from INR 915.3 million after a Kerala rectification order received by the company on October 6, 2026, giving MRF stock a concrete regulatory development. CNBC TV18 reported that the order was passed on September 30, 2026, and concerned MRF's financial year 2014-15 central sales tax assessment.

What does the tax order change

The reduction cuts the stated demand by INR 553.4 million, or 60.46 percent, from the earlier amount. MRF said it was examining the order before deciding whether to challenge the remaining demand, so the financial effect is defined by the revised assessment rather than by a cash inflow.

Three dated operating signals

On May 7, 2026, MRF reported fiscal 2026 revenue of INR 316,540.0 million, up 11.00 percent, and net profit of INR 24,260.0 million, up 30.00 percent, according to ALFA Finder. On August 11, 2026, the company reported June-quarter revenue of INR 84,155.0 million, up 9.60 percent year over year, while earnings before interest, taxes, depreciation and amortization fell 7.50 percent to INR 9,906.0 million, according to CNBC TV18. The September 30, 2026 order, received on October 6, 2026, is the latest dated development in this sequence.

Margins remain the key test

Revenue growth has not translated into equal profit growth in the latest quarter. The EBITDA margin declined to 11.77 percent from 13.95 percent a year earlier, while material costs rose to INR 58,240.0 million from INR 45,970.0 million, making input costs the central operating counterweight to the tax relief.

MRF's next investor signal

For investors, the company now presents two distinct numbers: fiscal 2026 net profit of INR 24,260.0 million and June-quarter net profit of INR 4,953.5 million, down 1.30 percent year over year. The tax order reduces a historical liability, while the next earnings update will show whether revenue growth can stabilize margins.