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Balkrishna Industries
SectorConsumer Discretionary
Balkrishna Industries Limited (BKT) is an India-based company headquartered in Mumbai that manufactures and sells Off-Highway Tyres (OHT) for specialist segments including Agricultural, Industrial, Construction, Earthmovers, Port, Mining, Forestry, Lawn & Garden, and All-Terrain Vehicles. The company operates five production sites in India and has subsidiaries in Europe and North America. BKT sells its products in 130 countries through a network of national distributors. The company has expanded its production capacity over the years, including the establishment of a Carbon Black project and the completion of a new plant in Waluj. BKT's product range covers various applications such as tractors, harvesters, forklifts, excavators, and dump trucks.
In the news
Balkrishna Industries posts 24% revenue growth, record OHT sales
Capital Allocation Strategies: Debt vs Equity in India's Growth Story
Balkrishna Industries approves ₹550 cr NCD issue via private placement
Balkrishna Industries shares rise 2.25% to ₹2548, Motilal Oswal targets ₹2259
Balkrishna Industries Q1 profit surges 56% to ₹451 cr, stock rises 2.95%
Balkrishna Industries CFO Deputy Quits, Stock Up 0.29%
Geojit upgrades Bajaj Auto to Buy with ₹11,735 target
Balkrishna Industries diversifies from off-highway tyres
The Quarter story
The two most recent quarterly results, compared side-by-side.
Balkrishna Industries drives strong revenue and profit growth in Q1 FY27, though margin compression and tight cash reserves require attention.
Revenue grows from ₹2,320 Cr in Q2 FY26 to ₹3,409 Cr in Q1 FY27, showing strong top-line momentum.
Cash reserves fall from ₹3,498 Cr in Q1 FY26 to ₹27 Cr in Q4 FY26, signaling tight liquidity.
Sales volume expands from 70,252 MT in Q2 FY26 to 93,770 MT in Q1 FY27, indicating rising demand.
EBITDA margin slips from 23.8% in Q1 FY26 to 20.6% in Q1 FY27, showing margin compression.
Net profit climbs from ₹265 Cr in Q2 FY26 to ₹432 Cr in Q1 FY27, reflecting robust bottom-line recovery.
Raw material costs rise from ₹1,145 Cr in Q2 FY26 to ₹1,935 Cr in Q1 FY27, pressuring input expenses.
EBITDA recovers from ₹500 Cr in Q2 FY26 to ₹703 Cr in Q1 FY27, demonstrating strong operational leverage.
Stock levels shift from +₹53 Cr in Q1 FY26 to -₹200 Cr in Q1 FY27, reflecting aggressive inventory drawdown.
Company insights, generated from the most recent coverage.
$169 million outflow as stock moves to MSCI Smallcap Index, reducing institutional ownership base.
Exclusion from Standard Index likely widens bid-ask spreads and increases market impact costs.
Progressive leverage build-up strategy with AA+ ratings enables cost-effective debt access while maintaining substantial cash buffer (~₹3,000 crore) alongside net debt of ₹1,725 crore.