Whalesbook
Profit Slips Despite Revenue and Volume Gains
Balkrishna Industries Ltd. reported a 19% year-on-year decline in net profit for the fourth quarter, falling to ₹300 crore from ₹369 crore a year ago. Revenue still grew 6.6% to ₹2,932.8 crore. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose a modest 4.3% to ₹640 crore, though EBITDA margins saw a slight compression to 21.8% from 22.3% year-on-year.
Off-Highway Tyre Segment Shows Momentum
The off-highway tyre (OHT) segment remains the main revenue driver, accounting for about 91% of total sales. During the fourth quarter, OHT sales volumes grew 5% to 85,820 metric tonnes. Management pointed to a recovery in the European market in the second half of the fiscal year, better traction in the Americas, and continued strength in India.
Ambitious Expansion Plans Include Big Capex
Balkrishna Industries is pushing ahead with aggressive expansion. The company plans substantial capital expenditures, including ₹1,300 crore for OHT tyres announced in August 2024 and ₹3,500 crore for on-highway tyres, rubber tracks, carbon black, and power plant projects announced in May 2025. A further ₹2,000 crore is set aside for capacity expansion, infrastructure development, AI-enabled automation in the on-highway tyre category, and sustainability initiatives.
Dividend Proposed Amid Flat Market Reaction
The board recommended a final dividend of ₹4 per equity share. Shares of Balkrishna Industries Ltd. saw little movement following the announcement, closing up 0.18% on the BSE at ₹2,263.25.