Goodyear India Faces Financial Challenges Amid Mixed Profit Growth and Declining Metrics

Goodyear India has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending September 2025. The company's financial score has seen a decline, indicating a tougher operating environment.
On a positive note, the company reported a significant growth in profit before tax (PBT), which reached Rs 12.98 crore, marking a 23.8% increase compared to the previous four-quarter average. However, this growth is overshadowed by a notable decline in profit after tax (PAT) over the last six months, which fell to Rs 27.18 crore, representing a decrease of 33.33%.

Other concerning indicators include a return on capital employed (ROCE) at a low of 9.71%, a debtors turnover ratio of just 0.87 times, and net sales for the quarter at Rs 596.46 crore, the lowest recorded.

In terms of market performance, Goodyear India has shown mixed results compared to the Sensex. Over the past week and month, the stock has slightly outperformed the index, but year-to-date and longer-term returns reveal a decline relative to the broader market. The company’s five-year return stands at 18.38%, significantly lower than the Sensex's 97.60%. This context highlights the need for Goodyear India to address its operational challenges to align more closely with market expectations.