Balkrishna Industries Ltd. (BKT) reports a sales volume of 70,252 MT for Q2 FY26, with a revenue of Rs. 2,320 cr. EBITDA stood at Rs. 500 cr and Net Profit at Rs. 265 cr. H1 FY26 sales volume reached 150,916 MT, generating revenue of Rs. 5,079 cr. The company is targeting revenue growth to ~ Rs. 23,000 cr by FY30, driven by OHT segments, carbon black sales and new tire categories.
Q2 & H1 FY26 Performance Highlights
Balkrishna Industries Ltd. (BKT) has announced its financial performance for Q2 and H1 FY26:
Q2 FY26:
- Sales Volume: 70,252 MT (a decrease of 4% YoY)
- Revenue: Rs. 2,320 cr (a decrease of 6% YoY)
- EBITDA: Rs. 500 cr (a decrease of 19% YoY)
- Net Profit: Rs. 265 cr (a decrease of 24% YoY)
H1 FY26:
- Sales Volume: 150,916 MT (a decrease of 4% YoY)
- Revenue: Rs. 5,079 cr (a decrease of 2% YoY)
- EBITDA: Rs. 1,155 cr (a decrease of 13% YoY)
- Net Profit: Rs. 552 cr (a decrease of 33% YoY)
The Board has declared a dividend of Rs. 4/- per equity share for Q2.
Sales Volume Profile
BKT’s sales volume reached 3,15,273 MT in FY25, with 1,50,916 MT already achieved in H1 FY26.
Growth Roadmap & Strategy
BKT aims to achieve ~ Rs. 23,000 cr in revenue by FY30, driven by the following:
- ~70% from OHT (Off-Highway Tire) segments
- ~10% from 3rd party sales of Carbon Black
- ~20% from new tire categories for the Indian market
This growth will be supported by:
- New growth capex of Rs. 3,500cr over the next 3 years for Carbon Black, rubber tracks, and new tire categories.
- Achieving an 8% global market share in the OHT segment.
OHT Strategy
BKT plans to sustain and consolidate its global leadership in agricultural tires. It is also the only Indian manufacturer developing All-Steel Radial technology for mining tires up to 57 inches.
The company is expanding its dedicated manufacturing facility for tracks, with production expected to commence in H2-2026. The ongoing capex will increase OHT tire capacity to 425,000 MTPA, enabling BKT to reach its 8% global market share target. Reaching 10% global market share remains a strategic goal.
Expanding Carbon Black Capacity
BKT is increasing its carbon black capacity from 200,000 MTPA to 360,000 MTPA, along with a 24 MW cogeneration power plant, bringing total co-gen power capacity to 64 MW at Bhuj. This expansion is expected to be completed by early 2026.
Entering New Tire Verticals in India
BKT plans to enter the premium passenger car radial tires and commercial vehicles radial tires market in India, focusing on the replacement market. CV Radial tires pilot will launch in Q4FY26 and PCR tires pilot will follow in Q3FY27. These new verticals are expected to contribute ~20% of revenue by FY30, with a target of ~5% market share.
Competitive Advantages
BKT has several competitive advantages, including:
- Scalable infrastructure
- Stronger brand equity
- Integrated carbon black plant
These advantages support a robust profitability outlook, with blended margins expected to be in the range of 23-25% post full commercialization.
Sustainability Initiatives
BKT is committed to ESG (Environmental, Social, and Governance) principles. Key priorities include climate resilience, energy management, waste management, and ethical procurement. Achieved include 98.17% of total waste recycled/reused, 21.37% YoY reduction in non-renewable grid electricity consumption, and 100% of manufacturing sites ISO 9001:2015 certified.
Source: BSE
