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Balkrishna Industries Ltd — Q4 FY26
Balkrishna Industries reported Q4 FY26 revenue of ₹2,894 crore (+2% YoY) and EBITDA of ₹663 crore (margin 22.9%), impacted by raw material cost headwinds and forex losses of ₹47 crore.
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2-Minute Summary
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Balkrishna Industries reported Q4 FY26 revenue of ₹2,894 crore (+2% YoY) and EBITDA of ₹663 crore (margin 22.9%), impacted by raw material cost headwinds and forex losses of ₹47 crore. OHT volumes hit a record 85,280 MT (+5% YoY), driven by H2 recovery in Europe and improving traction in the Americas. The company is navigating raw material inflation (4-5% in Q4, expected 7-8% in Q1 FY27) with price hikes of 3-5% and plans further increases. Management maintained its 23-25% EBITDA margin target but flagged near-term pressure. The board approved an additional ₹2,000 crore capex for capacity expansion and AI automation, with FY27 capex guided at ₹1,500-1,800 crore. Entry into TBR and PCR segments is progressing, with TBR capacity at 800 tires/day and PCR launch by end of CY26. Key risk: inability to fully pass on raw material cost increases could compress margins.
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
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Raw Material Cost Inflation
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Transcript
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Read Transcript →Quarter Snapshot
OHT Sales Volume
85,280 MT
+5% YoY
Record quarterly volume; FY26 total volume 317,356 MT.
US Volume Contribution
~10%
flat YoY
US was just short of 10% of total volume in FY26; targeting 10% in FY27.
TBR Capacity (Phase 1)
800 tires/day
new
Phase 1 completed; eventual capacity target 3,800 tires/day.
Carbon Black Capacity
265,000 kta
new line added
New line commissioned Dec 2025; full utilization achieved; targeting 360,000 kta.
What Changed vs Last Quarter
NEW
FY27 Capex of ₹1,500-1,800 crore
Management guided capex for FY27 between ₹1,500 and ₹1,800 crore, part of the ₹6,800 crore plan through FY29.
NEW
EBITDA Margin Target 23-25%
Management reiterated its endeavor to sustain EBITDA margins in the 23-25% range for the company as a whole.
NEW
PCR Tire Launch by End of CY2026
Company plans to introduce passenger car radial tires by end of calendar year 2026, with initial capacity of 6,700 tires per day.
NEW
On-Highway Revenue Vision of ₹5,000 crore by 2030
Management reiterated its stated vision of achieving ₹5,000 crore revenue from on-highway tire segment by 2030.
DROPPED
Capex of ₹300-400 crore in Q4 FY26
Management expects to spend ₹300-400 crore more in the current financial year, with the balance of committed capex in FY27.
DROPPED
CV/PV4A projects on schedule
Commercial vehicle and passenger vehicle 4A projects are progressing as per schedule, with announcements expected once ready.
DROPPED
Carbon black ramp-up in coming quarters
Sample approvals for carbon black are progressing; volumes should improve in coming quarters.
NEW RISK
Raw Material Cost Inflation
Raw material prices rose 4-5% in Q4 and are expected to increase 7-8% in Q1 FY27, potentially pressuring margins if price hikes are insufficient.
NEW RISK
Geopolitical and Supply Chain Disruptions
Geopolitical scenarios impacted supply chains and freight costs (4.5-5% of revenue), with further marginal increases expected.
NEW RISK
US Tariff Refund Uncertainty
Company has filed for refund of reciprocal tariffs in the US but has not yet received any amount; quantum and timing remain uncertain.
NEW RISK
On-Highway Segment Margin Dilution
Entry into TBR, PCR, and two-wheeler segments may pressure overall margins if ramp-up costs or competitive pricing impact profitability.
RISK GONE
US tariff impact on margins and volumes
US tariffs continue to pressure volumes (down ~30% YoY) and margins, as management shares part of the tariff cost with channel partners.
RISK GONE
Euro hedge limiting forex gains
Despite euro appreciation, forward hedges prevent full realization of forex benefits, capping margin improvement.
RISK GONE
Competitive pressure in CV/PV segment
Analyst questioned BKT's ability to gain share in competitive CV/PV tire market; management cited 'better value proposition' but gave no specifics.
Fast read
Guidance and risk preview
Management guided capex for FY27 between ₹1,500 and ₹1,800 crore, part of the ₹6,800 crore plan through FY29.
Raw material prices rose 4-5% in Q4 and are expected to increase 7-8% in Q1 FY27, potentially pressuring margins if price hikes are insufficient.
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