Balkrishna Industries (502355) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was marked by volatility due to tariff-related disruptions, with a 90-day pause on tariffs leading to gradual normalization in ordering cycles.

• Revenue grew 1% year-over-year to Rs. 2,759 crore, while net profit declined 40% to Rs. 287 crore, impacted by lower export share, forex losses, and higher depreciation.

• Sales volume reached 80,664 MT, a marginal 3% YoY decline, reflecting resilience amid global headwinds.

• India contributed 35% to sales volumes, growing 14.4% year-over-year, driven by strong brand acceptance and new product launches.

• Interim dividend of Rs. 4 per equity share declared.

Financial highlights

• Standalone/consolidated revenue for Q1 FY26 was Rs. 2,759–2,760 crore, up from Rs. 2,690 crore YoY.

• EBITDA stood at Rs. 655 crore with a margin of 23.8%, down 8% YoY.

• Profit after tax was Rs. 287 crore, down 40% YoY, mainly due to a Rs. 154 crore mark-to-market forex loss.

• Cash and cash equivalents stood at Rs. 3,498 crore as of June 30, 2025.

• Basic and diluted EPS for Q1 FY26 was Rs. 14.91.

Outlook and guidance

• Management expects further normalization and improved market share as tariff uncertainties resolve.

• Targeting 2.2x revenue growth by FY30 to Rs. 23,000 crore, with 8% global OHT market share.

• Margin guidance for the full year remains at 24–25% EBITDA, with some quarters expected to be above or below this range.

• Expanding carbon black capacity to 360,000 MTPA by early 2026, supporting sustainability and supply security.

• Entry into premium passenger car and commercial vehicle radial tires for India, with pilots launching in FY26–FY27.