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 YoY, 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 volume: 317,356 MT; OHT contributed 91% to overall revenue.

• Q4 standalone revenue: INR 2,894 crore (+2% YoY); FY26 revenue: INR 10,656 crore (flat YoY); Q4 PAT: INR 295 crore; FY26 PAT: INR 1,222 crore.

• Q4 standalone EBITDA: INR 663 crore (22.9% margin); FY26 EBITDA: INR 2,423 crore (22.7% margin, -10% YoY).

• CapEx spend for FY26: ~INR 2,800 crore; net debt as of March 31: INR 895 crore (gross debt INR 4,049 crore, cash INR 3,154 crore).

• Final dividend of INR 4/share recommended, in addition to INR 12/share paid in previous quarters.

Outlook and guidance

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

• Expecting growth in FY27 but refraining from specific volume guidance due to geopolitical uncertainties.

• Raw material prices expected to rise 7%-8% in Q1 FY27; price hikes of 3%-5% already implemented, with further increases likely.

• Sustained EBITDA margin target of 23%-25% for the company as a whole, though near-term margin pressure anticipated due to input cost inflation.

• On-highway business expected to contribute ~20% of revenue by FY30; carbon black ~10%.