Balkrishna Industries (BKT) reported its Q2 & H1 FY26 results, facing tariff-related headwinds in the U.S., leading to a 4% volume degrowth. Q2 revenue reached INR 2,360 crore, while EBITDA stood at INR 500 crore with a margin of 21.5%. Despite near-term challenges, BKT remains focused on strengthening its market position, expanding its carbon black business, and targeting revenue of INR 23,000 crore by 2030.
Financial Overview
Balkrishna Industries Limited (BKT) announced its Q2 & H1 FY26 earnings amidst significant market challenges. Key highlights from the announcement include:
- Q2 Volume: 70,252 MT, a 4% year-on-year decrease.
- H1 Volume: 150,916 MT, also a 4% year-on-year decrease.
- Q2 Revenue: INR 2,360 crore.
- Q2 EBITDA: INR 500 crore with a 21.5% margin.
- H1 EBITDA: INR 1,155 crore with a 22.7% margin.
- H1 Capex Spend: Approximately INR 1,737 crore.
Impact of U.S. Tariffs
The increase in import duties on Indian goods to 50% in the U.S. significantly impacted BKT’s sales, as U.S. markets accounted for approximately 10% of the previous year’s sales volume. The company hopes for an early resolution to trade agreements to ease these challenges and support medium-term growth in the United States.
Strategic Initiatives and Outlook
BKT remains focused on strengthening its market presence in India and Europe. Key strategic initiatives include:
- Expanding the carbon black business.
- Increasing market share in the U.S. once tariffs ease.
- Targeting a revenue of INR 23,000 crore by 2030.
Awards and Recognitions
BKT received the ‘Excellence’ level award from Caterpillar’s Global Supplier Excellence recognition program. BKT’s Bhuj plant also achieved a 5-star grading and a Sword of Honor Award for 2025 by the British Safety Council.
New Developments
The company inaugurated a dedicated vehicle dynamics and testing base at the NATRAX in Indore for commercial and passenger vehicle tires.
Source: BSE
