Balkrishna Industries Limited has released the transcript of its Q1 FY27 earnings conference call held on July 30, 2026. The call detailed strong performance in the OHT segment with a 16% year-on-year volume growth, despite global supply chain challenges. Management discussed strategies for the Carbon Black and On-Highway businesses, new product launches, and capital expenditure plans.
Balkrishna Industries Discusses Q1 FY27 Performance and Outlook
The transcript of the Balkrishna Industries Limited Q1 FY27 Earnings Conference Call, held on July 30, 2026, provides insights into the company’s performance and strategic direction. The call highlighted robust growth in the Off-Highway Tire (OHT) segment, achieving its highest quarterly sales volume with a 16% year-on-year growth. This was achieved despite international geopolitical uncertainties and supply chain disruptions, with the company implementing price hikes and focusing on a superior product mix to mitigate these challenges.
Key Business Segment Updates
The company reported significant developments in its Carbon Black business, including the commissioning of Phase II of its Carbon Black plant, increasing total capacity to 360,000 MTPA. A new Business Head for Carbon Black, Mr. Ashish Kumar Datta, with extensive industry experience, has been appointed. The captive power plant capacity was also enhanced to 64 megawatts.
The On-Highway Business vertical is also gaining traction, with supplies commencing in the Truck Bus Radial segment and positive initial responses. The company launched its 2-wheeler tires portfolio and a 24-X7 journey assistance program, indicating a move towards product and service integration. Despite the segment currently being small, the strategy focuses on gradual ramp-up starting from Q2.
Financial Highlights and Capex
For the quarter, OHT segment volume stood at 93,770 metric tons. Stand-alone revenue grew by 24% year-on-year to INR3,409 crores. Stand-alone EBITDA was INR703 crores with a margin of 20.61%, impacted by raw material prices. Profit after tax stood at INR432 crores. The company also announced a recommended first interim dividend of INR4 per equity share.
Capital expenditure for the quarter was approximately INR1,000 crores. The company is on track with its capex plan, with a new Carbon Black facility in Bhuj (capital outlay INR800 crores) and increased power capacity at Bhuj (capital outlay INR125 crores) completed. Remaining capex projects amounting to approximately INR3,000 crores are progressing as per schedule.
Future Outlook and Market Dynamics
Management acknowledged geopolitical uncertainties and supply chain impacts as key variables for near-term performance. They expressed confidence in the long-term growth runway in the Americas market. The company is focusing on volume growth with margin discipline, leveraging Carbon Black capacities, and scaling up the On-Highway Business. India’s market share in the Off-Highway segment is around 18%-19%, with plans to increase it.
Source: BSE
