Balkrishna Industries Ltd. (BKT) has presented its growth roadmap, detailing ambitious revenue targets by 2030 and highlighting key achievements for Q2 and H1 FY27. The company plans to more than double its revenue to ₹23,000 crore by FY30, driven by its OHT, Carbon Black, and On-Road businesses. Strategic initiatives include a partnership with Pirelli, expansion of carbon black capacity, and a new on-road business strategy for India.
BKT’s FY27 Performance and Future Outlook
Balkrishna Industries Ltd. (BKT) has released its investor presentation, covering performance highlights for the second quarter (Q2) and first half (H1) of FY27, alongside its strategic growth roadmap. The company reported robust performance across key metrics, demonstrating resilience and consistent growth in a dynamic market.
Q2 and H1 FY27 Performance Snapshot
In Q2 FY27, BKT achieved a tire sales volume of 91,397 MT, marking a 30% year-on-year increase. Revenue surged by 49% YoY to ₹3,450 crore, with EBITDA reaching ₹629 crore, up 26% YoY. The EBITDA margin stood at 18.2%, and Net Profit was ₹291 crore, a 10% increase. An interim dividend of ₹4 per equity share was declared.
For H1 FY27, tire sales volume grew 23% YoY to 185,167 MT. Revenue increased by 35% YoY to ₹6,859 crore, and EBITDA stood at ₹1,332 crore, up 15% YoY. The EBITDA margin was 19.4%, with Net Profit at ₹723 crore, a substantial 31% YoY growth. The total interim dividend for H1 FY27 was ₹8 per equity share.
Strategic Partnership with Pirelli
BKT has entered into a strategic agreement with Pirelli to manufacture Pirelli-branded passenger car radial (PCR) tires at its Bhuj plant. Production is slated to begin in 2027, with supplies gradually increasing to 800,000 tires by 2030. A 50:50 joint venture is also planned for a new India plant for PCR tires. This partnership aims to leverage Pirelli’s premium positioning and technology with BKT’s manufacturing scale.
Growth Roadmap and FY30 Targets
BKT projects a 2.2x revenue growth by FY30, targeting approximately ₹23,000 crore from the current ₹10,600 crore in FY26. This growth will be driven by a 5-year CAGR of ~17%. The OHT business is expected to contribute ~70%, third-party sales of carbon black ~10%, and the On-Road business ~20% to the revenue.
The company plans a total capex of ₹6,800 crore till FY29 to achieve an 8% global market share in the OHT segment. The OHT strategy focuses on sustaining global leadership in agricultural tires, developing All-Steel Radial technology for mining tires, and expanding its portfolio in Tracks, Industrial, and Construction tires.
Expansion of Carbon Black capacity to 360,000 MTPA is underway, supporting tire operations and enhancing energy circularity. This expansion aims to contribute ~10% revenue by FY30.
BKT is also launching its On-Road Business in India with a modular entry into Premium Passenger Car Radial Tires and Commercial Vehicles Radial Tires, initially focusing on the replacement market. This segment is projected to achieve ~5% market share and contribute ~20% to revenue by FY30.
Competitive Advantages and Outlook
BKT highlights its scalable infrastructure, stronger brand equity, and integrated carbon black plant as key competitive advantages. The company anticipates robust profitability, with blended margins expected to be in the range of 23-25% post-full commercialization, allowing significant EBITDA growth.
Sustainability Initiatives
The presentation also details BKT’s ESG approach, focusing on Environment, Social, and Governance factors. Key environmental progress includes YoY reductions in non-renewable grid electricity consumption and waste generation, alongside increased use of renewable energy and planting of new trees. Social initiatives encompass extensive training hours, zero human rights violations, and significant CSR spending.
Achievements and Recognition
BKT has received several accolades, including Caterpillar’s ‘Excellence Level’ recognition for the fourth consecutive year, a Five-Star rating from the British Safety Council for its Bhuj plant, and the establishment of an advanced R&D base at NATRAX.
Source: BSE
