Balkrishna Industries (502355) Q2 25/26 earnings summary

Executive summary

• Faced significant challenges from a 50% U.S. import tariff, causing U.S. sales to drop to about 10% of last year's volume and impacting overall demand.

• Strategic focus on strengthening positions in India and Europe, with optimism for a trade agreement to ease U.S. tariffs.

• Q2FY26 standalone revenue declined 6% YoY to Rs. 2,320 crore, with net profit down 24% YoY to Rs. 265 crore and EBITDA down 19% YoY to Rs. 500 crore.

• H1FY26 revenue fell 2% YoY to Rs. 5,079 crore, net profit dropped 33% YoY to Rs. 552 crore, and EBITDA decreased 13% YoY to Rs. 1,155 crore.

• Recognition for quality and safety, including awards from Caterpillar and the British Safety Council.

Financial highlights

• Quarterly sales volume was 70,252 units, down 4% year-over-year; H1 volume was 150,916 units, also down 4%.

• Standalone revenue for the quarter was INR 2,360 crore, with a realized forex loss of INR 68 crore.

• Standalone EBITDA for the quarter was INR 500 crore (21.5% margin); H1 EBITDA was INR 1,155 crore (22.7% margin).

• PAT margin for Q2FY26 was 11.4% (down from 14.2% YoY); H1FY26 PAT margin was 10.9% (down from 15.9% YoY).

• Cash and cash equivalents stood at Rs. 3,159 crore as of September 30, 2025.

Outlook and guidance

• Expecting a quick recovery in U.S. volumes once tariffs ease, with readiness to service pent-up demand.

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

• Aims to achieve 8% global market share in OHT segment and 5% market share in new Indian tire verticals by FY30.

• Expects blended margins post full commercialization in the 23-25% range.

• No formal volume growth guidance due to global volatility.