JK Tyre Hits Record High, CEAT Jumps 5% As Tyre Stocks Rally On Margin Recovery Hopes

Shares of tyre manufacturers saw strong buying on Friday, December 19, as expectations of better profit margins due to falling raw material costs helped drive the trend. The broader market was positive, supporting the rally in auto and ancillary stocks.

JK Tyre Hits Fresh Record

JK Tyre & Industries share price surged nearly 7% during intraday trade to a new lifetime high of ₹491.90. Since December 11, the stock has gained about 10%, helped by HDFC Mutual Fund buying a small stake through open market purchases.

CEAT, Apollo Tyres And Others Gain

CEAT share price rose around 5% to ₹3,925, while Apollo Tyres share price advanced 3%. TVS Srichakra share price and MRF share price also moved higher by 2–3%. These stocks outperformed the benchmark indices during the session.

Why Tyre Stocks Are In Focus

Tyre companies benefit when rubber and crude-based raw material prices soften. In the September 2025 quarter, blended raw material costs declined by about 3%, supporting better margins and profitability. 

GST Cuts Add Growth Push

The government’s decision to cut GST on tyres from 28% to 18%, and on farm tyres from 18% to 5%, is expected to boost auto demand. Lower ownership costs could speed up vehicle replacement and lift tyre demand across commercial, passenger and farm segments.

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Strong Earnings Support Sentiment

JK Tyre reported its highest-ever quarterly revenue of ₹4,026 crore, up 10% year-on-year, with EBITDA margins improving to 13.3%. CEAT also posted double-digit revenue growth in Q2, supported by better product mix and GST benefits.

Conclusion

Tyre stocks gained momentum as easing raw material prices, GST cuts and strong quarterly performance improved the margin outlook. With demand expected to pick up further, investor interest in the sector remains strong.

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