Balkrishna Industries Q2 Profit Declines 21.3% YoY, Board Declares Interim Dividend

Industrial Goods/Services

Updated on 31 Oct 2025, 01:39 pm

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

Balkrishna Industries Ltd reported a 21.3% year-on-year decline in net profit for the second quarter of FY26, reaching ₹273 crore compared to ₹347 crore last year. Revenue saw a slight dip of 1.1% to ₹2,393 crore, and EBITDA fell by 11.7% to ₹511.6 crore. The company's operating margin narrowed to 21.4% from 24%. Despite the profit drop, the board announced a second interim dividend of ₹4 per equity share for FY2025-26, and confirmed capital expenditure projects are on schedule. The company's stock ended 1.77% lower on Friday.

Balkrishna Industries Q2 Profit Declines 21.3% YoY, Board Declares Interim Dividend

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Stocks Mentioned :

Balkrishna Industries Ltd

Detailed Coverage :

Balkrishna Industries Ltd announced its financial results for the second quarter of Fiscal Year 2026 on Friday, October 31. The company reported a net profit of ₹273 crore, marking a 21.3% decrease compared to ₹347 crore in the same quarter last year. Revenue also experienced a slight decline of 1.1%, falling to ₹2,393 crore from ₹2,419 crore year-on-year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) dropped by 11.7% to ₹511.6 crore. The operating margin narrowed significantly from 24% in the prior year's comparable period to 21.4%. Despite these profit declines, the company's board declared a second interim dividend of ₹4 per equity share for FY2025-26. Balkrishna Industries also confirmed that its ongoing capital expenditure projects are progressing as planned. Shares of Balkrishna Industries Ltd closed down 1.77% on Friday at ₹2,285.50 on the National Stock Exchange.

Impact This news may negatively affect investor sentiment towards Balkrishna Industries Ltd due to the decline in profitability and revenue. The dividend announcement could offer some support, but the market will likely focus on the profit erosion. The stock price may see continued pressure or volatility. Rating: 6/10

Heading: Key Terms Explained Net Profit: The profit a company makes after deducting all its expenses, including taxes and interest. Revenue: The total income generated by the sale of goods or services related to the company's primary operations. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. Operating Margin: A profitability ratio that shows how much profit is generated from sales after accounting for variable costs of production. It is calculated as Operating Income / Revenue. Interim Dividend: A dividend paid out to shareholders during the financial year, before the final dividend is declared. Capital Expenditure (CapEx): Funds used by a company to acquire, upgrade, and maintain physical assets like property, buildings, and equipment. Year-on-year (YoY): A comparison of financial data between the current period and the same period in the previous year.