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Informist, Wednesday, Jul. 29, 2026

By Upasika Singhal 

MUMBAI – Balkrishna Industries Ltd. reported higher-than-estimated net profit and revenues for the June quarter, even as operating expenses rose. The off-highway tyre company posted a standalone net profit of INR 4.32 billion for the June quarter, up 50% from INR 2.87 billion in the year-ago quarter. Analysts had estimated the net profit at INR 3.37 billion.

The company earned INR 34.45 billion in revenues, 24% higher than INR 27.60 billion reported for the year-ago quarter. The top line beat the consensus estimate of INR 30.79 billion.

Balkrishna Industries' total expenses rose 20% on year to INR 29.61 billion. The company's cost of materials consumed rose 49% on year to INR 18.6 billion. Sequentially, the cost of materials consumed was up nearly 27%. Depreciation and amortisation costs rose 9% to INR 2.03 billion. The company's profit before tax was up 48% to INR 5.81 billion. 

The company reported an operating margin of 15.09% for the June quarter, up from 11.49% for the year-ago quarter. The company's net profit margin was 12.2% for the June quarter, up from 10.02% in the year-ago quarter. The company declared an interim dividend of INR 4 per share with the record date of Aug. 4.  

The company reported earnings before interest, tax, depreciation, and amortisation of INR 7.03 billion for the June quarter, up over 7%. The company's EBITDA margin fell 320 basis points on year to 20.6% for the quarter from 23.8%.

The company's off-highway tyre segment posted its highest-ever quarterly sales volume of 93,770 tonnes, up over 16% on year. The segment's sales contributed 90% of overall revenues. A majority of off-highway tyre sales come from the agricultural segment. More than 70% of the off-highway tyre segment's sales came from replacement demand, 27% from original equipment manufacturers, and the rest from others. Geographically, India accounted for almost 40% of sales of the off-highway tyre segment, Europe contributed 38% and sales from the US were 12%. The remaining 10% sales were from the rest of the world.

In April, the company launched its on-highway business, starting with commercial vehicles and two-wheelers. The company aims to earn 20% of its revenues from this business by the financial year 2029-30 (Apr-Mar), still keeping off-highway tyres as its main business, whose share could come down to 70% by 2030. The rest of the revenues will come from sales of carbon black. The company has commissioned phase-2 of its carbon black plant, expanding the capacity to 360,000 million tonnes per annum. 

The company plans to expand its on-highway business by entering into premium passenger car radial tyres and commercial vehicle radial tyres. While the company's commercial vehicle tyre business was launched in April, its passenger tyre business will be launched in the September quarter. The company said its initial focus will be on the Indian replacement market. It aims to achieve 5% market share by FY30.

Wednesday, shares of Balkrishna Industries ended at INR 2,081.70 apiece on the National Stock Exchange, up more than 3% from Tuesday. The company declared its June quarter earnings after market hours.  End

Edited by Shubhayan Bhattacharya

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