The post Tyre Stocks Surge Ahead Of Markets On Lower Costs And Auto Demand Boost appeared first on The Edge Media.
]]>Over the past six months, the average return generated by major listed players such as MRF, JK Tyre, CEAT and Apollo Tyres stood at around 18 per cent, sharply outperforming benchmark indices that posted only low single-digit gains during the same period.
A key driver behind this rally has been margin expansion led by declining input costs, with early evidence visible in the September quarter earnings. Operating profit margins of major Indian tyre companies rose sequentially by 130 to 240 basis points, while year-on-year improvement ranged between 56 and 322 basis points. On average, margins expanded by nearly 190 basis points across the four companies, marking the strongest quarterly margin performance in at least five quarters.
Raw material costs as a share of sales declined during the quarter and this trend is expected to continue into the December quarter. Natural rubber prices have dropped by about 10 per cent since early September, while crude oil prices have declined by over 13 per cent. In addition to natural rubber, key inputs such as synthetic rubber, nylon tyre cord and carbon black, which are linked to crude derivatives, are also expected to witness softer pricing, further supporting profitability.
Demand momentum from the automobile sector has added another layer of support. The auto industry recorded strong performance in November 2025 across passenger vehicles, two-wheelers, commercial vehicles and tractors. Most large automakers reported double-digit year-on-year growth, driven by festive demand spillover, improved affordability following price cuts, positive rural sentiment and sustained export demand.
Domestic volume growth was led by medium and heavy commercial vehicles and tractors, which expanded by over 30 per cent year-on-year. Light commercial vehicles, two-wheelers and passenger vehicles also posted healthy growth in the range of 18 to 23 per cent, reinforcing the positive demand outlook for tyres.
Against this backdrop, brokerage firms remain optimistic about the sector. Analysts at Anand Rathi Research expect MRF to record steady growth in revenue, operating profit and net profit over the FY25 to FY28 period, supported by strong replacement demand, export growth and market share gains. Margin improvement is expected to be driven by lower rubber prices, softer crude-linked inputs and better realisations from an improved product mix. The brokerage has maintained a buy rating on the stock with a target price of Rs 1,70,000.
Nirmal Bang Research continues to favour CEAT, citing its leadership in the two-wheeler segment, expanding presence in premium categories such as SUVs and higher-capacity motorcycles and a growing international footprint following the Camso acquisition. Analysts believe favourable GST reforms, rising electric vehicle adoption and premiumisation trends will support steady growth in the domestic tyre market. The stock carries a buy rating with a target price of Rs 4,545.
ICICI Direct Research has also retained a positive view on Apollo Tyres, highlighting the benefits of GST 2.0 reforms, expected recovery in margins and improving auto volumes. Strong cash flow generation, disciplined capital expenditure, ongoing debt reduction and healthy return ratios further strengthen the investment case, with a target price of Rs 565.
Geojit Research expects the Indian tyre industry to grow at 7 to 8 per cent in FY26, led by robust replacement demand. It points to market penetration initiatives, digitalisation and operational efficiency improvements as long-term growth drivers for JK Tyre, while cautioning that global uncertainties related to US tariffs and geopolitical tensions remain key risks. The brokerage has maintained a hold rating on the stock with a target price of Rs 391.
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]]>The post GST Shake-Up: 5% & 18% Tax Slabs Approved – States Fear Revenue Crisis appeared first on The Edge Media.
]]>While the central government insists the move will simplify GST compliance, several opposition-ruled states fear it could devastate their finances. Under the current structure, states depend heavily on GST compensation to manage their budgets. With this adjustment, states argue that compensation may not be enough to offset the potential revenue shortfall.
Economists predict mixed outcomes. On the one hand, consolidation of slabs can make tax filing easier for businesses, reducing litigation and confusion. On the other hand, shifting many goods to the 18% slab could increase prices, directly affecting the middle class and small traders.
The debate is expected to heat up in the coming months as the GST Council prepares to present the proposal formally. Traders’ bodies, industry chambers, and consumer rights groups are already preparing their responses.
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]]>The post Key takeaway of 44th GST council meet. appeared first on The Edge Media.
]]>Here are the major decisions taken by the Council:
* In all, the GST Council has revised tax rates on four items — medicines; oxygen and oxygen generation equipment; testing kits and related machines and other Covid relief material.
* GST on Tocilizumab and black fungus drug Amphotericin B has been slashed to nil from 5 per cent earlier.
* Tax on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices has been cut to 5 per cent from 12 per cent.
* Tax on Covid testing kits has been brought down to 5 per cent from 12 per cent.
*Pulse oximeters, hand sanitisers and temperature check equipment too will attract lower 5 per cent tax.
* GST on electric furnaces and temperature checking equipment brought down to 5 per cent and on ambulances to 12 per cent.
* The GST Council decided to retain 5 per cent GST on Covid vaccines.
* Centre will buy the 75 per cent vaccine as announced and will pay GST on it too. But 70 per cent of income from GST will be shared with states, Sitharaman said.
* Sitharaman said that when Centre is purchasing and paying GST too on Covid-19 vaccines and they are being given free of cost to the public, the GST rate will make no difference or impact on the people.
* For ambulances, the GST rate has been reduced from 28 per cent to 12 per cent and for hand sanitsers from 18 per cent to 5 per cent.
* Genome sequencing kits will continue to be charged at 12 per cent.
* Specified inflammatory diagnostic kits like D-Dimer, IL-6, Ferritin, LDH will also be charged at 5 per cent.
* The deadline of September 30 may be extended based on advice and states’ inputs and the recommendations of the GST implementation committee after eliciting opinions.
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]]>All these revised rates will be valid till September 30 as against August-end, she added.
The meeting was attended by minister of state (MoS) for finance Anurag Thakur, finance ministers of states and Union territories and senior officers from the government and states.
Tax on medicines, some hospital equipment and other items needed in the fight against COVID-19 has been reduced by the Goods and Services Tax Council. The tax cut is based on recommendations by a Group of Ministers amid the pandemic, whose crippling effects on the economy has also hurt household finance, the constitutional body that decides rates for the GST has said.
No tax will be charged for medicines like the monoclonal antibody Tocilizumab and Amphotericin B, used for treating Black Fungus, an opportunistic fungal disease that affects people infected with Covid.
There is no change in the GST rate of some items being charged at 18 per cent, such as RT-PCR machines, RNA extraction machines and genome sequencing machines. Genome sequencing kits that are being charged at 12 per cent will continued to be charged at the same rate.
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]]>The post 47th GST meet to be held today; first in seven months appeared first on The Edge Media.
]]>The Council is also expected to discuss the compensation shortage to the states amid the coronavirus pandemic. The deficit in GST compensation payable to states in the current fiscal year is estimated at 2.7 lakh crore.
This May, the finance ministry had extended timelines of various GST compliance for March and April, taking in consideration the ongoing COVID pandemic. As many states have announced partial lockdowns, another extension for May and June is very likely.
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]]>The post GST Council’s next meeting to be held on May 28: Finance Ministry appeared first on The Edge Media.
]]>The GST council last met on October 5, 2020 to finalise the outline o borrowings by state to meet the shortfall in the tax revenues. The meeting was further extended and ended on October 12, 2020. The Union Chief Minister Nirmala Sitharaman will chair the 43rd meeting of the council. It was tweeted by her office.
Smt @nsitharaman will chair the 43rd GST Council meeting via video conferencing at 11 AM in New Delhi on 28th May 2021. The meeting will be attended by MOS Shri @ianuragthakur besides Finance Ministers of States & UTs and Senior officers from Union Government & States.
— NSitharamanOffice (@nsitharamanoffc) May 15, 2021
Opposition parties of the states have been continuously complaining about not holding the GST Council meeting in the recent weeks. West Bengal Finance Minister Amit Mitra wrote to Sitharaman earlier this week regarding the urgent need of the council meetings. He wrote that when GST was implemented, the states were promised that they will be compensated against any downfall in the tax revenues.
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