Balkrishna Industries (502355) Q3 25/26 earnings summary

Executive summary

• Achieved a 15% sequential increase in overall sales volume despite ongoing geopolitical and macroeconomic challenges, including U.S. tariffs.

• Q3FY26 revenue rose 4% YoY to Rs. 2,682 crore, with sales volume up 6% YoY; EBITDA and net profit declined 5% and 15% YoY, respectively.

• India market outperformed, driven by sustained demand post-GST reduction and favorable monsoon.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31st December 2025 were approved, with a limited review by statutory auditors confirming compliance and no material misstatements.

• Third interim dividend of Rs. 4 per share declared for Q3, totaling Rs. 12 for the year so far.

Financial highlights

• Q3 volumes: 80,620 MT, up 6% year-over-year; 9M volumes: 231,536 MT, down 1% year-over-year.

• Q3 standalone revenue: INR 2,682 crore, up 4% year-over-year; 9M revenue: INR 7,762 crore, flat year-over-year.

• Q3 standalone EBITDA: INR 605 crore (22.5% margin), down 5% YoY; 9M EBITDA: INR 1,760 crore, down 11% YoY.

• Q3 profit after tax: INR 375 crore, down 15% YoY; 9M PAT: INR 927 crore, down 27% YoY.

• Realized forex losses: INR 47 crore in Q3, INR 117 crore in 9M.

Outlook and guidance

• CapEx for FY26 expected to be INR 2,500-2,600 crore, with balance to be spent in FY27.

• Targeting 2.2x revenue growth by FY30 to Rs. 23,000 crore, with a 17% CAGR.

• Aims for 8% global market share in OHT segment and 10% in the long term.

• Commodity prices (oil, natural rubber) are rising, but impact is uncertain.

• Too early to provide long-term guidance for Europe and U.S. due to volatility.