Balkrishna Industries (502355) Q3 25/26 earnings summary

Executive summary

• Achieved strong sequential improvement in Q3 despite ongoing geopolitical and macroeconomic challenges, including U.S. tariffs, with unaudited results confirming compliance and no material misstatements.

• Q3FY26 revenue rose 4% year-on-year to Rs. 2,682 crores, with sales volume up 6% year-on-year; India led performance, Europe rebounded, and U.S. sales regained momentum despite tariffs.

• EBITDA margin compressed to 22.5% in Q3FY26, reflecting higher costs, while net profit for the quarter stood at Rs. 375 crores.

• A third interim dividend of Rs. 4 per share was declared for Q3, totaling Rs. 12 for the year so far, with a total cash outgo of Rs. 77.32 crores.

• Commissioned a new carbon black line, raising total capacity to 265,000 MT per annum.

Financial highlights

• Q3FY26 sales volume: 80,620 MT (+6% YoY); 9MFY26: 231,536 MT (-1% YoY).

• Q3FY26 standalone revenue: INR 2,682 crores, up 4% YoY; consolidated revenue: Rs. 2,736.79 crores.

• Q3FY26 standalone EBITDA: INR 605 crores (22.5% margin); net profit: Rs. 375 crores; consolidated net profit: Rs. 382.15 crores.

• 9MFY26 EBITDA: Rs. 1,760 crores (-11% YoY); net profit: Rs. 927 crores (-27% YoY).

• Realized forex loss: INR 47 crores in Q3, INR 117 crores in 9M.

Outlook and guidance

• CapEx for FY26 expected to be INR 2,500-2,600 crores, with balance to be spent in FY27; all projects progressing on schedule.

• Targeting 2.2x revenue growth by FY30 to Rs. 23,000 crores, with a 17% CAGR and 8% global OHT market share.

• Commodity prices (oil, natural rubber) are rising, but impact is uncertain; freight costs stable at around 5% of revenue.

• Too early to provide long-term outlook for Europe and U.S. due to volatility and tariffs.