MRF stock tax demand cut to INR 361.9 million after Kerala order

MRF Limited said on October 6, 2026, that it had received a Kerala tax rectification order reducing the disputed demand for financial year 2014-15. CNBC TV18 reported that the order lowered the amount after the company's application remained pending for several years.

Kerala Order Reduces Tax Exposure

The Deputy Commissioner of State Tax, Pala, passed the order on September 30, 2026, in a Central Sales Tax assessment concerning export clearances and declaration forms. MRF had filed its rectification application on April 29, 2021. The company is examining the order and will decide whether to challenge the remaining demand, according to CNBC TV18.

Costs Weigh on June Quarter

The tax development comes against a mixed operating backdrop. MRF's revenue from operations rose 9.6 percent year over year to INR 8,415.5 million in the June quarter, while EBITDA fell 7.5 percent to INR 990.6 million. The EBITDA margin narrowed to 11.77 percent from 13.95 percent as material costs increased to INR 5,824 million from INR 4,597 million.

The figures point to solid top-line demand but weaker operating leverage. For investors, the next results will show whether pricing and volume growth can offset pressure from raw materials and other operating expenses.

Company Profile

MRF Limited manufactures and sells automotive tyres, tubes and flaps for passenger cars, two-wheelers, farm equipment, trucks and other commercial vehicles. The company is headquartered in Chennai, India, and serves original-equipment and replacement markets through a broad product portfolio. MRF describes itself as India's largest tyre maker, giving it a leading domestic position in a competitive tyre market.

India's equity market remains the relevant market backdrop for MRF, with broader conditions tracked through the TA-35 index.

For further company developments, see More news and analyses on MRF stock.