Balkrishna Industries Limited announced robust financial results for the second quarter of FY27, with standalone revenue surging by 49% year-on-year to INR 3,450 crores. The company highlighted growth in its OHT business, strategic tie-ups for premium car tires, and plans for product development. Despite headwinds from raw material inflation, Balkrishna Industries is focused on maintaining EBITDA margins and expanding its market presence, particularly in the premium PCR segment.
Balkrishna Industries Announces Strong Q2 FY27 Performance
Balkrishna Industries Limited (BKT) has disclosed its financial and operational highlights for the second quarter and first half of FY27. The company reported a significant 49% year-on-year growth in standalone revenue for Q2 FY27, reaching INR 3,450 crores. For the first half of FY27, standalone revenue saw a 35% increase year-on-year, amounting to INR 6,859 crores.
Operational Highlights and Strategic Initiatives
The company’s OHT (Off-Highway Tire) business experienced strong sales volume growth in Q2 FY27, driven by an uptick in end markets. BKT also highlighted a key strategic tie-up with Pirelli for the production of Pirelli-branded premium car tires at its Bhuj facility. This partnership includes a potential Phase 2 joint venture for high-value passenger car tires catering to both domestic and international markets. The company is also focusing on its Carbon Black business, aiming for accelerated product development and expanding its customer base. The on-road business, including TBR and 2-wheeler tires, has shown strong acceptance, with plans to launch PCR tires in January 2027.
Financial Performance and Outlook
Standalone EBITDA for Q2 FY27 stood at INR 629 crores, with a margin of 18.24%. The company noted that profitability was impacted by raw material inflation and freight costs. For H1 FY27, EBITDA was INR 1,332 crores with a margin of 19.42%. Profit after tax for the quarter was INR 291 crores, and INR 723 crores for H1. BKT’s capex spend for H1 FY27 was approximately INR 1,850 crores, with the company on track to meet its annual target. The Board of Directors has recommended a second interim dividend of INR 4 per equity share, in addition to the INR 4 paid for Q1 FY27.
Future Strategy and Vision
Balkrishna Industries reiterated its Vision 2030, aiming for significant market share in new verticals. The company plans to operate within three key areas: off-road, on-road, and carbon black, with a focus on marketing and branding. BKT endeavors to maintain an EBITDA margin between 20% and 25%. The company is actively managing its product mix and pricing strategies to balance growth and profitability amidst ongoing cost pressures.
Source: BSE
