JK Tyre & Industries Limited (NSE: JKTYRE) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Anshuman Singhania — Managing Director
Anshuman Singhania — Managing Director
Arun K. Bajoria — Director & President, International
Sanjeev Aggarwal — Chief Financial Officer
Analysts:
Ronak Mehta — Analyst
Bharat Bhagnani — Analyst
Aditya Kani — Analyst
Nandan Pradhan — Analyst
Abhishek Jain — Analyst
Kuber Chauhan — Analyst
Presentation:
operator
It. Sam it. Foreign. Ladies and gentlemen, good day and welcome to JK Tire Limited Q3FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Mehta from ICICI Securities Limited. Thank you. And over to you sir.
Ronak Mehta — Analyst
Thank you, Rudra. Good evening everyone. On behalf of ICICI Securities Limited I would like to welcome you all to Q3FY26 earnings conference call of JK Tires and Industries Limited today we have with us the senior management team represented by Mr. Anshuman Singhanya, Managing Director, Mr. Arun Bajoria, Director and President International Business Mr. Sanjeev Agarwal, Chief Financial Officer and Mr. A.K. kendra, Financial Advisor. We will begin the call with the opening comments from the management team followed by Q and A sessions. Over to you management team. Thank you.
Anshuman Singhania — Managing Director
Thank you and a very good evening to all of you. I welcome you all to the JK Tower Quarter 3 FY26 earning call. First I would like to extend my heartfelt and warm wishes to you and your family for a very happy New Year. I am glad that here I have with me Dr. Arun K. Bajoriagi, Director and President International, Mr. A.K. kinungi, Financial Advisor and Mr. Sanjeev Agarwalji, the CFO. The Union Budget 2026 reinforces India’s commitment to the manufacturing led growth. The continued drive on capital expenditure with infrastructure allocation exceeding Rs. 12 lakh crores will improve cost efficiency and support demand momentum in the auto and tire sector.
The Indian economy picked up pace in the second quarter of FY26 as it exceeded the expectation by achieving GDP growth of 8.2% signaling a clear and a broad based uptick in the economic activity. This expansion also marks the highest growth in the last six quarters on back of strong rebound in the domestic consumption, resilient rural demand, higher government capex coupled with GST reforms and strong festival demand. Recent trade deals with EU and USA have been announced which will integrate the markets with above FTA countries and provide India benefit of market diversification. Indian auto industry continues to ride the wave of strong momentum with pent up Demand.
The year FY26 will be marked as a year of historic performance for the Indian automotive industry as Robber’s growth is being witnessed across sectors in FY26CV sales are expected to exceed its previous record high of over 1 million units which was achieved in FY19 driven by infrastructure development, increased freight movement, GST reforms and lower interest rates. PV have also recorded the highest ever sales of 4.38 million. While SUVs continue to dominate the PV sale. Small cars also rebounded strongly. Two wheeler sales also surpassed the 220 million mark in quarter three. FY26 auto industry witnessed a record breaking performance in both domestic and export market across segments with high double digit growth as we enter quarter four.
The momentum looks strong by firm demand across segments along with fresh pipeline of new launches and an overall improvement in customer sentiment. Talking about JK Tire Q3 financials, we have recorded the highest ever revenue of Rupees 4235 crores at a consolidated level up by 15% on a year. On year basis EBITDA stood at 583 crores with a margin of 13.8% reflecting a strong year on year expansion of 470 basic points. This growth was driven by JK Tire’s continued focus on product premonition, operating leverage along with execution excellence. Raw material prices also contributed favorably. Profit after tax fell 3.7 times to rupees 209 crores in quarter four.
Raw material price scenario is expected to remain range bound 1 to 2% increase. JK Tire has introduced embedded Smart tires for passenger cars to deliver real time data on tire operating conditions. The launch of embedded smart tires marks a defining milestone in JK Tire’s innovation journey while supporting safe driving along with improving vehicles performance and efficiency. Electrification continues to be steady and gaining momentum on a continuous basis and I am proud to announce that JK Tire has secured new OEM’s approval for supplying EV tyres to Hyundai Creta Tata Punch for electric variants. Recently renowned Duster has also been launched with our Ranger HPE tire demonstrating a long standing faith of customers in our offerings.
Also, four new types of OTR tires have been launched for industrial and mining applications. These tires are capable of sustaining harsh environments while continuing to deliver superior durability, sustainability and traction. During the quarter under review, we have further expanded our market footprint by adding nearly 200 dealer pan India in order to serve the growing domestic demand and 35 pit stops for enhancing customer services. Further 25 plus new fleets have been added to the total count in order to cater to the rural demand. Rural distribution network is being expanded. Indian tire industry is witnessing a strong demand across segments in order to capitalize on the significant market opportunity, the company has decided to further expand capacity for tbr, ASLTR and PCR through our expansion in various locations.
For an aggregated cost of 1130 crores, this will increase our overall capacity by nearly 7%. We are proud to share that JK Tire has earned a prestigious silver rating in the latest Ecovadis ESG assessment, placing the company along amongst the top 7% companies globally. This recognition reflects our strong performance across all sustainability pillars and reinforces our unparalleled effort towards the vision of becoming a green Company by 2050. During the quarter we completed the merger of our subsidiary company Cavendish Industries limited with JK Tire after securing all statutory approvals, CIL has undergone a remarkable transformation under the JK Tire leadership.
JK Tire provided all the necessary technical, financial and managerial support and capacity utilization was scaled up from around 30% to over 95% marking it JK Tire yet another successful turnaround acquisition after Vikrantire and JK Tonda in Mexico. I would like to bring to your attention that this merger is going to be highly value enhancer and will bring a lot of operation and functional synergy through pooling of resources. We are delighted to announce our long standing association with the prestigious and highly coveted awards iCoti and iMoti. Here are there are some few operational highlights. Domestic markets recorded a healthy volume growth of 16% contributed by replacement segment by 11%, OE segment by 24% on year on year basis.
Exports demonstrated resilience and grew by 9% in volume terms despite geopolitical uncertainty. PBR volumes in the replacement market grew by 15% and in the OEM market by 33% on year on year basis. Passenger line volume grew by 18% on year on year basis contributed by replacement market growth by 11% and a strong OEM growth of 24% and export volume grew by 40% on a year on year basis. Farm category volume on a year on year basis also saw significant growth majorly contributing by the OEM and replacement markets. 2 Three Wheeler segment volume on the OEM segment also grew by 30% on a Y and Y basis.
Now I would like to request Vajoreji to take over the performance on our JK Tondam.
Arun K. Bajoria — Director & President, International
Thank you MD sir, Mexico’s economic growth in 2025 remained steady despite heightened uncertainty over US tariffs and persistent macroeconomic headwinds. As per the International Monetary Fund’s Worldwide Economic Outlook Report, GDP growth for the full year 2026 is now projected at 1.5% supported by gradual Monetary easing, the bank of Mexico has further cut the benchmark interest rate tiie to 7%, its lowest level since 2022, driven by continued remittances from the US into Mexico. These rate cuts are aimed at stimulating economic growth amid sluggish GDP performance and ongoing uncertainty related to US tariffs. Coming to JK Tornell’s performance in Q3FY26 revenues were recorded at rupees 616 crores as against rupees 507 crores in the corresponding quarter, reflecting a robust 21% year on year growth, thereby reaffirming the continued customer preference enjoyed by J.K.
tornell in Mexico. We are proud to share that we have achieved the highest ever sales in Q3, reaffirming J.K. tornell’s strong market position. In addition, we have once again recorded the highest ever sales to mass merchandisers. J.K. turner’s EBITDA for Q3 stood at Rupees 58 crores up by 45% on a year on year basis. As against Rupees 40 crores in Q3 FY25 EBITDA margins reached a level of 9.4% registering an improvement of 148 basis points over the corresponding quarter. Led by the product mix improvement and benign raw material prices. FAT stood at rupees 42 crores significantly higher than the corresponding quarter.
We would like to assure you that dedicated efforts are underway to continuously enhance sales and profitability. Even as we remain cautiously optimistic for the year 2026, we continue to closely monitor the upcoming revision of the United States Mexico Canada agreement USMCA in July 2026 as this will be important for sustaining and strengthening our business with the USA. And now I would request Mr. Sanjeev Agarwalji to talk about the financial performance of JK Tire for the third quarter of FY26.
Sanjeev Aggarwal — Chief Financial Officer
Thank you sir. Thank you very much. Let me briefly share the key financial highlights for Q3FY26. Number one, the company recorded its highest ever consolidated revenue of rupees 4235 crore up by 15% on YY basis as against rupees 3694 crore in corresponding quarter. EBITDA for Q3FY26 was recorded at rupees 583 crore as compared to rupees change in 35 crore in the corresponding quarter last year and an increase of 74% on YUI base EBITDA margin during the quarter were recorded at 13.8% vis a vis 9.1% representing an expansion of 470 basis points. Cash profit for the quarter more than doubled and stood at rupees 478 crore as against 100 corresponding quarter last.
operator
Sorry to interrupt you, sir, but your voice is breaking.
Sanjeev Aggarwal — Chief Financial Officer
Okay. Profit after tax for Q3 jumped by 3.7x and stood at rupees 209 crore as against rupees 57 crore in Q3FY25. Government of India on 21st of November 25 notified four new labor codes, consolidated the earlier 29 labor laws and has comprehensively defined the term basis and accordingly there is a incremental financial implication of these labor codes to the extent of rupees 56.75 crore towards retiral obligation which has been taken into account and has been shown as the exceptional item in the P and L account. Radial tire capacity utilization remained high beyond 95% and overall Indian operating capacity utilization touching 90%.
Capacity utilization at consolidated level remained over 85% in Q3. Export volumes from India remained steady despite the uncertainties and have grown by 9% in terms of volume on yu y basis. As informed earlier, Our subsidiary company CIL has been merged into JK Tire in December 2025 A point with effect from the appointed date of 1st of April 2025, subsidiary JK Tornall, Mexico witnessed a significant improvement in its financial performance and has added to the consolidated financials. EPS in Q3 jumped 4x to rupees 7.29 per share as against rupees 1.85 in the corresponding quarter. Return ratios.
ROCE and ROE have been very stable and been in the comfortable zone in the middle double digit level. Net Debt as on 31st December stood at Rupees 4,183 crore as compared to 4,200 crore as on 9-30-2025. Fresh disbursements were taken for expansions which increased the total term loans and on the other hand, some working capital loans of CIL will be paid to avail working capital in JK Tire at better interest rates post merger. The balance sheet of the company continues to remain healthy and robust with key financial ratios leverage ratios with 0.71 debt to equity and 2.17x debt to EBITDA respectively.
We have already circulated the Q3 earnings presentation which is available on our website and you can please refer to that. And now we open the forum for questions and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and One on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star. And 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Bharat Bhagnani from Living Root Analytics. Please go ahead.
Bharat Bhagnani
Yeah, hello. So I want to understand what is the capacity utilization we’re operating at and also if you can give some color on the volume growth and pricing growth in the revenue mix this quarter.
Anshuman Singhania
Okay. So the capacity utilization has been at a level of 90, 90 plus percent. And our, what do you call the other question which you were asking was the pricing.
Aditya Kani
I’m asking the revenue mix for the volume growth and pricing growth.
Anshuman Singhania
So the revenue growth has been in the replacement, in the replacement market it is 56% and OE is 23%.
Aditya Kani
And so Anshuanji, I’m, I’m basically asking the growth that we have achieved 15% quarter over quarter. So within this, how much have we got from in terms of volume growth and how much have we got in terms of pricing growth by taking a price hike?
Anshuman Singhania
This is because of the volume growth, because this is almost like with a slight difference where we have increased some pricing in certain SKUs so majorly is because of the volume. So domestic volume growth has been 16% and our replacement volume growth has been 11% and OE has been 24% and.
Aditya Kani
There is not much of pricing. Right. So there’s not much of pricing growth. Right. So you’ve not taken any price hikes?
Anshuman Singhania
No, very, very, very minor.
Aditya Kani
And you know, given the, given the raw material scenario we are at currently. So where do you see margins for this year and the next quarter? Next couple of quarters.
Anshuman Singhania
So raw material will be range bound as I said and it will be 1 to 2% going up we are expecting. But the margins are going to be quite intact because there is a lot of volume push in this. And plus our premiumization will also play a role in the margin and plus the higher capacity utilization will also play a role in that.
Aditya Kani
Right, right. And so final question. You know one of our competitors like CET, they almost reported like a 25% growth on a similar base because the other companies are higher base than us. And we were reporting we reported around 15%. So is the management targeting a higher revenue growth going forward?
Aditya Kani
We are targeting a double digit revenue growth. And since you mentioned about the competition particularly see it, please don’t forget that they have a larger base of Two three wheeler as well. And also that acquisition.
Anshuman Singhania
Yeah. They. They acquired one company and the revenue from that company which they acquired in camp. So. So that has added to the revenue.
Aditya Kani
Okay. Okay. But we are targeting like are we targeting in terms of the mid mid double digit, high double digit, low double digit.
Anshuman Singhania
In terms of revenue mid double digit. As we have seen in this quarter, if the momentum continues, which is more likely then we are expecting big double digit move.
Aditya Kani
Okay. Okay. Okay. Thank you. Thanks so much. All the best.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Aditya Kani from Shah Capital. Please go ahead. Mr. Aditya.
Aditya Kani
Hi. Hi. Congratulations for good set of number. I want to understand the revenue mix on a standalone basis in terms of category and view as well as what was the percentage drop in the raw material cost on quarter, on quarter. So the quarter and quarter the raw material quarter two to quarter, three. It was flattish. So there was. It was flattish. And here the other question which you are asking was the growth. Right.
Anshuman Singhania
The growth revenue mix on a standalone basis revenue mix. So truck bus is 58% and passenger car line is 27%. And non buy non truck bias is 11%. Okay. And 11% includes two three wheeler. No, two three wheeler is separate which is 4%. And in terms of deal. In terms of bu. I didn’t understand BU. Yeah. In terms of market wise replacement is 63%. OE is 26 and 11 is export. Okay. Okay. Thank you.
Aditya Kani
Thank you.
operator
Thank you. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Ronak Mehta from ICICI securities limited. Please go ahead.
Ronak Mehta
Thank you. Thanks for the opportunity and congratulations on good performance. My first question is on your Mexico business. So what was the average realization in rupee in terms of rupee versus Mexican peso for this quarter? Now that rupee versus Mexican peso has moved over 5 rupees in last 23 months. Which is I think positive for the company. So just wanted to understand on that benefit. Because of this.
Anshuman Singhania
As you can see it is flat about flattish the revenue per kilo or whatever you want to see it as. But the net revenue revenue has gone. Up by 21% year on year basis. As I mentioned that from 507 it has gone up to 639 crores rupees in constant currency. Mr. Bajori mentioned that these revenues have been flattish. Understood. So entire Benefited from the depreciation or I would say the rupee depreciation for. The rupee is 21 and the net revenues in terms of rupee has gone up by 21%.
Ronak Mehta
Okay, understood. Okay, so my second question is on the demand scenario. So now that GST benefit has already come through in the replacement segment, do you see that continuing even post the fourth quarter? Because most of the companies are guiding for double digit growth for the fourth quarter. But do you see that this demand sustaining in the replacement market even beyond the March quarter?
Anshuman Singhania
Yeah, so we are seeing that entering the quarter four is going to be very strong and we are very confident about the healthy growth which is going to be coming across the sector. Not only gst. GST is definitely boosted, but we are seeing the macro tailwinds which are very positive in terms of rural demand, in terms of positive consumer sentiment and moreover lowering of that interest rate also is a very positive momentum and we see that continuing that into FY27.
Ronak Mehta
Understood. Okay, so one last question from my side. You along with some of your peers across the industry have announced new CapEx and the size of the CapEx is large for everyone. Do you see a scenario and most of the companies have been reporting almost 90% utilization level like you. So do you see a scenario that in the near term, say for next 12 months there could be a scenario where there is capacity constraint and the industry is looking to take price hike just to. Just because there is no capacity available. So pricing wise I think the scenario is favorable for the company, for the industry.
Anshuman Singhania
Look, everybody is announcing at the different capacity levels, capacity growth, right? And as I told you that domestic market is looking to be very buoyant in the coming year. So this, the appetite of commercial vehicles have come back after a long pause. So this will continue. And plus please don’t forget that domestic is one consumption point, the other is the export market at large which is a big also consumption point for tyres. And right now as you know that the EU and US FTAs are almost at the fine prints of getting finalized. We are expecting that tire should be given that importance and we will benefit from that for export.
So the capacities will be needed as we go forward because of the robust demand overall.
Ronak Mehta
No sir. So my question was more from the pricing point of view. So given that the demand is pretty strong and the capacity is is almost near peak utilization level in case a scenario, in case of a higher raw material pricing scenario, do you think that the price X could be much more easier this time given that recently because of GST also there was a price cut and industry also doesn’t have adequate capacity. So pricing wise is it easier? Do you think that it will be easier for you as well as other industry players to take price hikes in the near term?
Anshuman Singhania
See the demand in terms of the demand supply situation in the overall market dynamics, Whatever necessary price revision maybe, maybe have to be undertaken going ahead. That’s the call every individual company will have to take.
Ronak Mehta
Understood. Thank you sir. Thank you.
operator
Thank you. Our next question comes from the line of Abhishek Jain from Alfacurate Advices Private Limited. Please go ahead.
Abhishek Jain
Thanks for opportunity and congratulations for a strong set of numbers. So my first question on that demand scenario on the Mexican business. So just wanted to understand how much the volume growth Y on Y and quarter and quarter in Mexico and what are the levers for the business growth over there?
Anshuman Singhania
No. So as Bajoriji was also responding to the question earlier, the Mexico has seen a year in year basis a demand of 21% jump of revenue from Y on Y basis. As we go along that we see a good traction coming in from Mexico itself because the economy is picking up there. The other thing is also that we are continuously exploring the US Mexico under the US MCA right now it is not announced anything the duties, but we are taking advantage of that and we are exporting into US plus we see that Brazil lacks is also at a steady demand there.
We are also finding newer spaces to increase our throughput in terms of volumes. And as I told you that we are constantly increasing our foothold in Mexico appointing dealers and higher volume through mass merchandise as well. So we are seeing a good throughput coming in from there.
Abhishek Jain
So in Mexican business how much is the contribution of the export right now?
Anshuman Singhania
Well, if from the Mexican it is. About 40%, 40%, 60% is the domestic. Yes.
Abhishek Jain
And sir, in the domestic market there also that the Mexican government has imposed duty on the many countries. So just wanted to understand what is the benefit to you because your plant is over there. So is there any benefit goes to you because of this?
Anshuman Singhania
Yeah. So we have as the benefit is because we are a local producers there in that. So we get the benefit of a low cost base and that’s why we’ve been able to supply tires into the market and export. So we get that benefit.
Abhishek Jain
So from here on what kind of the growth we are looking in the domestic Mexican market and export market in Mexico business in the next one year. We are looking at the mid to single digit, mid to high single Digit growth? Absolutely. Single digit group? Single digit. Okay, got it. And, and how much margin expansion you’re looking over there?
Anshuman Singhania
We are looking in the range of about 1 to 2%.
Abhishek Jain
Yeah, 1 to 2. That’s all from it. Thank you.
operator
Thank you. Our next question comes from the line of Nandan Pradhan from MK Global Financial Services. Please go ahead.
Nandan Pradhan
Yes, hello, good afternoon to the team and thank you for taking my question. But can you please speak a little louder? Is this better? Am I audible now? Comparatively better, yes. Congratulations on a great set of numbers sir. And I just had two questions. One is the 14 billion capex that was undergoing. We had mentioned that it would come on stream for from Q3 and I think PCR had started from October so just wanted to know the status on that currently. That’s the first question.
Anshuman Singhania
Yeah, so our PCR is already under ramp up. It is attained its full, what do you call it is already going to be attaining its full capacity by July 26th and our TBR is by April 26th and ASLTR is going to be is already completed achieved.
Nandan Pradhan
Thank you sir. And so we had also called out EBITDA margin guidance of 13 to 15%. I think we are already towards the upper band and with Q4 RM basket seeing going upwards of 1 to 2% the impact of that would largely flow through in Q1 of 27. So do we still stand by the guidance of 13 to 15%?
Anshuman Singhania
Yes we will because as I was explaining in the earlier call there is a lot of robustness in terms of the OE demand and we are the largest in the truck and bus. So there we are seeing good throughput coming in and it is going to be sustained even in the FY27 and we also see a good traction also in the passenger car line as well where our premiumization is playing an important role in terms of margin expansion. So last year in our mix in the 16 inch and above we were 27% in the mix of passenger car and today we are at 31 to 32% in the mix.
So that is also panning out for us and we are just to complete the story we are also expanding as I mentioned 1130 crores where we are also undertaking more expansion in the passenger line which will also enhance us for for higher rim size capability.
operator
Thank you for such a detailed answer. So just one last question if I could squeeze in. We had spoken about a 50 billion capex over a period of next five years so this 1130s would essentially form a part of that plan if I’m not wrong.
Anshuman Singhania
So this is the. The 11:30 is a part of that only.
Nandan Pradhan
Okay. Okay, sir. All right.
Anshuman Singhania
This will be. This will be sort of phasing out. Yeah. Over a period of three to. Three to four years. Yes. So this 11:30 would be over a period of three to four years. No, no. So this will take one or two years time, rather one and a half years. Exactly. To complete the project.
Nandan Pradhan
Thank you so much. Thank you for taking my question.
operator
Thank you. Our next question comes from the line of Kuber from Access securities. Please go ahead.
Kuber Chauhan
Yeah, congratulations sir, for a good set of numbers. Just two questions from mine. First one is what kind of traction, demand traction we are witnessing in the verticals. Is it more from trust? Is it more from passengers? That is one question or other. Any other verticals. And secondly, you said that we are 40% the dependency is on Mexico. So are we going to reduce in near future?
Anshuman Singhania
Let me correct you that 40% is not the dependency of Mexico. To our revenue. Mexico’s export is 40% and rest 60% is being selling in domestic in Mexico.
Kuber Chauhan
Okay. And in terms of demand, where we are witnessing more traction. And in next year as well, what we see in terms of demand.
Anshuman Singhania
Yeah, so we are witnessing a good demand across the sector. There is been a sharp demand which is coming in from the OEM in the CV and in the truck and bus segment. As I said, that truck is already crossed is FY19 high numbers in terms of their sale. And we see that traction going forward in the quarters of next year. And we are also seeing a good traction coming in from passenger radial as we are reading that. And we are participating closely with the OEMs with an exciting product launches across the passenger car segment.
Plus as the rural income is also picking up, we are also seeing traction in the farm sector and as well as the two three wheeler as well.
Kuber Chauhan
Okay, got it.
Anshuman Singhania
Thank you. Thank you.
operator
Thank you. Our next question comes from the line of Bharat Bhagnani from Living Root Analytics. Please go ahead.
Bharat Bhagnani
I think this question is Sanjeev Ji. Sanjeevji, can you just explain the current tax and deferred tax calculation which is there and what’s the tax rate for us?
Sanjeev Aggarwal
So because we are in the process of implementing the projects at certain projects, therefore some kind of defer tax increases every year. And because this gives the benefit in income tax to defer for the amount of new new projects. But we are using 25% tax brackets the new regime actually we are in. So 25% is the effective Tax rate for us.
Bharat Bhagnani
Okay. And in this particular quarter how much is the effective tax rate that we have paid?
Sanjeev Aggarwal
So that will be the same except that because we were also carrying forward some of the losses in the books of commendation income tax, not in books of accounts. So that some benefit might have come actually our way from CIM when we. Have got this tax rate.
Bharat Bhagnani
Around 25% of it. That is the 25. So I think going ahead do we. Have this divided between the deferred tax and the actual tax payment and because the Overall build remain 25% and I. Think the exception items also you have given the note for that. So I think going forward this exception won’t come right.
Anshuman Singhania
So there are three exceptional items in this note which is one is the stamp duty which is because of the merger incident and one time the other one is foreign exchange losses. As you would know, there was a use volatility during the quarter. And this may. This is also not the full sort of the realized loss. I would say this is mark to market partly and the third one is because of the labor law. This is one time again.
Bharat Bhagnani
So all of these are one time I think apart from foreign exchange.
Anshuman Singhania
Yeah, these two major ones are one time and forex losses today could be forex gain tomorrow and but this is mostly the mark to market one and.
Bharat Bhagnani
Anshumanji, one final thing from my side, the rubber prices have gone up a bit. So till what level of rubber prices are we comfortable that we are confident that we will be able to maintain the margins.
Anshuman Singhania
So rubber prices have gone up and as I said that our total raw material basket will be hoovering around perhaps 1 to 2%. So that will not make much of a impact because there is a lot of volume push with enhanced capacity. So utilization is also at its full. So you’re okay with these kind of prices as well, right? You’re able to. You’re confident that you’ll be able to. We will plan accordingly as the in terms of the competitiveness of the market price increases.
Bharat Bhagnani
Okay. Okay. Thank you so much. Thanks.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Anshuman Singhania
So yeah, thank you so much for joining this conference call for quarter three. And I hope we have given you this answers satisfactorily to your questions. So good day. Thank you so much.
operator
Thank you.
Sanjeev Aggarwal
Thank you.
operator
Thank you. On behalf of ICICI Securities Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.