Balkrishna Industries (502355) Q4 25/26 earnings summary

Executive summary

• Achieved highest ever quarterly and annual volumes in FY26, with strong H2 recovery in Europe and Americas, and stable financial performance despite macroeconomic and supply chain challenges.

• FY26 revenue was Rs. 10,656 crore, flat year-over-year, with net profit at Rs. 1,222 crore, down 25% YoY; EBITDA stood at Rs. 2,423 crore, down 10% YoY, and EBITDA margin declined to 22.7%.

• Expanded product portfolio with entry into truck bus radial, two-wheeler, and upcoming passenger car radial tire segments.

• Enhanced brand positioning through marketing campaigns, sports partnerships, and brand architecture updates.

• Advanced sustainability initiatives, improving S&P Global CSA score to 58 and launching significant CSR projects.

Financial highlights

• Q4 OHT sales volume: 85,280 MT, up 5% YoY; FY26 OHT volume: 317,356 MT, contributing 91% to overall revenue.

• Q4 standalone revenue: INR 2,894 crore, up 2% YoY; FY26 revenue: INR 10,656 crore, flat YoY; consolidated revenue: Rs. 10,819.95 crore.

• FY26 consolidated net profit: Rs. 1,243.10 crore, down from Rs. 1,654.96 crore in FY25; standalone PAT: INR 1,222 crore.

• FY26 EBITDA: INR 2,423 crore (standalone), Rs. 2,522.98 crore (consolidated); EBITDA margin: 22.7%.

• Dividend of Rs. 16 per share for FY26, including three interim and one final dividend of Rs. 4 per share recommended.

Outlook and guidance

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

• On-highway tire segment aims for INR 5,000 crore revenue by 2030; carbon black expected to contribute ~10% of revenue.

• Price hikes of 3%-5% already implemented, with further increases likely as raw material costs are expected to rise 7%-8% in the June quarter.

• No formal volume or revenue guidance due to geopolitical and market uncertainties, but growth is targeted.

• Blended margins post full commercialization expected in the 23-25% range.