Balkrishna Industries (502355) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly sales volume of 93,770 MT in Q1 FY27, up 16% year-on-year, with revenue rising 24% to INR 3,409 crore and net profit increasing to INR 432 crore, despite global supply chain challenges.

• Launched new on-road products in the TBR and two-wheeler segments in India, with positive initial market response and a 24/7 journey assistance program.

• Carbon black business saw volume growth, commissioning phase two of the plant to increase capacity to 360,000 KTA/MTPA, and increased captive power to 64 MW.

• India contributed 40% of total volumes, surpassing Europe for the first time, driven by growth in agri, mining, and industrial sectors.

• Board declared an interim dividend of INR 4 per equity share.

Financial highlights

• Standalone revenue for Q1 FY27 was INR 3,409 crore, up 24% year-on-year, with total income reaching INR 3,543.01 crore.

• Standalone EBITDA stood at INR 703 crore, with a margin of 20.61%, impacted by higher raw material costs.

• Profit after tax for the quarter was INR 432 crore, with PAT margin improving to 12.7%.

• CapEx for the quarter was approximately INR 1,000 crore, with ongoing projects totaling INR 3,000 crore.

• Net debt as of June 30, 2026, was INR 1,725 crore; gross debt at INR 4,690 crore and cash equivalents at INR 2,965 crore.

Outlook and guidance

• Geopolitical uncertainties, supply chain disruptions, and commodity inflation expected to impact near-term performance.

• Price hikes of about 5% taken in Q1 to offset raw material inflation; further hikes under review.

• Targeting 2.2x revenue growth by FY30, aiming for INR 23,000 crore revenue, with 70% from OHT, 20% from On-Highway, and 10% from carbon black.

• CapEx for FY27 projected at INR 2,500–3,000 crore, with ongoing capex of INR 6,800 crore planned till FY29.

• On-highway business expected to ramp up gradually from Q2, with a long-term target of INR 5,000 crore revenue by 2030.