Balkrishna Industries (502355) Q4 24/25 earnings summary

Executive summary

• Strategic plan targets revenue of INR 23,000 crore by 2030, driven by OHT, carbon black, and new tire categories for India, with OHT aiming for 70%, carbon black 10%, and new tire verticals 20% of revenue.

• Achieved record annual revenue of INR 10,615 crore in FY25, up 13% year-on-year, with net profit increasing 13% to INR 1,628 crore and EBITDA up 16% to INR 2,682 crore at a 25.3% margin.

• Expansion into premium passenger car and commercial vehicle radial tires in India, with pilots launching FY 2025-2027.

• Board approved significant capital expenditure for new production facilities and ongoing expansion projects, including Carbon Black and Rubber Tracks.

• The amalgamation of BKT Tyres Limited with the company was sanctioned, effective 1st April 2024.

Financial highlights

• FY25 standalone revenue at INR 10,615 crore, up 13% year-on-year; consolidated revenue at INR 10,446.95 crore.

• FY25 standalone EBITDA at INR 2,682 crore, up 16% year-on-year, with a margin of 25.3%.

• FY25 profit after tax at INR 1,628 crore, up 13% year-on-year; consolidated net profit at INR 1,654.96 crore.

• Final dividend of INR 4 per share recommended, total INR 16 per share for the year.

• Gross cash and cash equivalents at INR 3,327 crore as of March 31, 2025; net cash position of INR 115 crore.

Outlook and guidance

• Targeting 2.2x revenue growth by FY30, aiming for INR 23,000 crore revenue.

• No specific volume guidance due to global volatility and geopolitical risks.

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

• CapEx of INR 3,500 crore planned over next three years, mainly funded through internal accruals.

• Maintenance capex for OHT business expected at INR 500-700 million annually after current expansion.