GOODYEAR - Goodyear India

📊 NSE: GOODYEAR 🏢 Tyres 📅 Last Updated: 12/13/2025 22:32

💰 Financial Performance

Revenue Growth by Segment

Total income grew 2.21% YoY to INR 2,625.57 Cr in FY 2024-25, up from INR 2,568.68 Cr. Specific segment-wise percentage growth for farm, commercial, and passenger tyres was not explicitly disclosed.

Geographic Revenue Split

Domestic sales dominate the revenue mix; Exports contributed INR 33.45 Cr, representing 1.30% of total turnover in FY 2024-25.

Profitability Margins

Operating Profit Margin declined from 4.6% to 2.4% YoY. Net Profit Margin decreased from 3.8% to 2.1% YoY. Return on Net Worth dropped from 16.0% to 9.3% due to lower profitability.

EBITDA Margin

Operating Profit Margin stood at 2.4% for FY 2024-25, a significant contraction from 4.6% in the previous year, primarily impacted by raw material price volatility and fuel inflation.

Credit Rating & Borrowing

Debt Equity Ratio increased from 0.01 to 0.05, primarily due to lease liabilities for a new Head Office. Interest Coverage Ratio fell from 31.20 to 16.96 as a result of these increased lease-related debt obligations.

⚙️ Operational Drivers

Raw Materials

Natural rubber and crude oil derivatives constitute a significant portion of tyre production costs (exact % not disclosed).

Capacity Expansion

The company operates 1 manufacturing plant in Ballabgarh, Haryana. Specific planned expansion units or timelines were not disclosed.

Raw Material Costs

Raw material price volatility is cited as a severe risk to profitability, particularly natural rubber and crude oil derivatives which are major cost components.

📈 Strategic Growth

Growth Strategy

Growth is targeted through strong innovation capabilities and technology-based solutions to deliver customer satisfaction. The company is focusing on the replacement market for passenger car tyres and transitioning toward sustainable mobility solutions like low-emission products.

Products & Services

Automotive tyres including farm tyres, commercial truck tyres, and passenger car tyres.

Brand Portfolio

Goodyear.

New Products/Services

Advanced mobility solutions and new products focused on the transition to low- or zero-emissions transport (expected revenue % not disclosed).

Market Expansion

The company serves national markets pan-India and international markets across 7+ countries.

Strategic Alliances

Ultimate holding company is The Goodyear Tire & Rubber Company; Goodyear Orient Company (Private) Limited holds a 74% stake.

🌍 External Factors

Industry Trends

The industry is evolving toward sustainable mobility and circular innovation, with increasing stakeholder expectations for low-emission transport solutions and better management of the tyre life cycle.

Competitive Landscape

The company faces risks from rising interest rates impacting borrowers in the financial sector and volatile commodity prices affecting all tyre manufacturers.

Competitive Moat

Moat is built on strong brand recognition and innovation-led technology solutions. Sustainability is maintained through alignment with global science-based targets (SBTi) for 2030 and 2050.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure spending. Agricultural output sensitivity is high due to the farm tyre segment.

Consumer Behavior

Shift in consumer demand toward advanced mobility solutions and zero-emission transport options.

Geopolitical Risks

Geopolitical tensions and potential shifts in US trade policy/reciprocal tariffs pose risks to export growth and supply chain stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to evolving manufacturing operations and material use regulations, including pollution norms and sustainable sourcing guidelines.

Environmental Compliance

The company spent INR 2.94 Cr on CSR activities in FY 2024-25, meeting the 2% statutory requirement. It has set 2030 and 2050 science-based targets validated by SBTi.

Legal Contingencies

The company received 322 customer complaints in FY 2024-25, with 318 resolved. 6 other complaints were received. Specific INR values for pending court cases were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (Natural Rubber/Crude Oil) and geopolitical disruptions are the primary uncertainties impacting margins by up to 220 bps (operating margin drop).