Balkrishna Industries Limited (BALKRISIND) — Financial Results

📢 Key Event
Approved Deloitte as joint statutory auditor and announced INR6,800 crores capex through FY29 with INR1,500-1,800 crores planned for FY27.

🔄 What Changed
2% YoY revenue growth to ₹2,894 crores, 5% YoY OHT volume growth to 85,820 MT, EBITDA margin at 22.9%, and capex increase to INR6,800 crores through FY29.

🔮 What's Next
INR1,500-1,800 crores capex for FY27, targeting 23-25% sustained EBITDA margin, and 10% U.S. volume growth in FY27 after 'just short of 10%' in FY26.

💡 Investor Takeaway
Shareholders should note margin pressure from rising raw material costs may be offset by implemented and planned price hikes, with growth focused on higher-margin product segments and capacity expansion through FY29.

Balkrishna Industries reported Q4 FY26 revenue of ₹2,894 crores, up 2% YoY, with OHT sales volume at 85,820 metric tons (5% YoY growth) and EBITDA margin at 22.9%. Management highlighted capacity expansion to 6,700 tyres/day, pricing discipline, and margin focus through product mix rather than volume growth, while targeting 23-25% sustained EBITDA. Capex plans of INR6,800 crores through FY29 include INR2,000 crores recent additions, with FY27 allocation of INR1,500-1,800 crores for capacity and sustainability initiatives. Raw material costs rose 4-5% last quarter and are expected to increase 7-8% in Q1, prompting 3-5% price hikes already implemented and an additional 2% planned this month. Freight costs remain at 4.5-5% of revenue with marginal increase expected. The company is not providing volume guidance for OHT or FY27 due to geopolitical uncertainty but expects growth in CV radial and 2W segments. Channel inventory is normal, and product mix is shifting toward higher-end radialized offerings to support margins. Management reaffirmed confidence in growth prospects and upcoming quarterly updates.

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