Balkrishna Industries Q4 FY26 Results: Announces Rs 6,800 Crore Capex Plan and Targets Rs 23,000 Crore Revenue by FY30 Amid OHT Expansion

On Friday, shares of Balkrishna Industries Ltd fell 0.18 per cent to Rs 2,262.50 per share from its previous closing of Rs 2,258.40 per share. The stock’s 52-week high is Rs 2,817.50 per share and its 52-week low is Rs 2,015.40 per share. During the session, the stock surged 1.84 per cent to its Intraday high of Rs 2,300 per share.

Balkrishna Industries Ltd (BKT) reported its Q4 FY26 and annual financial results, highlighting steady operational performance and a long-term expansion roadmap despite a challenging global economic environment. The company continued to strengthen its position in the Off-Highway Tire (OHT) segment while laying the foundation for its ambitious “BKT 2.0” strategy targeting major growth by FY30.

For the financial year ended March 31, 2026, the company reported standalone total income of Rs 10,656 crore, which remained flat compared to the previous year. EBITDA stood at Rs 2,423 crore, down 10 per cent year-on-year, while net profit declined 25 per cent year-on-year to Rs 1,222 crore due to margin pressures.

The company’s OHT sales volume for FY26 reached 3,17,356 metric tonnes, reflecting a 1 per cent increase year-on-year. Agriculture continued to remain the largest business segment, contributing 58.8 per cent of the total mix, followed by Off-the-Road tires at 37.5 per cent. Balkrishna Industries also witnessed improving demand trends during the second half of FY26, with recovery in Europe, better traction in the Americas, and sustained momentum in the Indian market.

In Q4 FY26, the company reported standalone revenue of Rs 2,894 crore, up 2 per cent year-on-year. OHT sales volume rose 5 per cent year-on-year to 85,820 metric tonnes, indicating improving operational momentum. Net profit for the quarter came in at Rs 295 crore, while EBITDA margin remained healthy at 22.9 per cent.

The Board of Directors recommended a final Dividend of Rs 4 per equity share. With this, the total dividend declared for FY26 stands at Rs 16 per share.

Balkrishna Industries also unveiled its “BKT 2.0” strategy with a target to achieve nearly Rs 23,000 crore in revenue by FY30, implying a compounded annual growth rate of 17 per cent. To support this expansion, the Board approved an additional capex of Rs 2,000 crore, taking the total planned investment through FY29 to Rs 6,800 crore.

Under its long-term growth roadmap, the company aims to increase its global OHT market share to 8 per cent by expanding capacity to 4,25,000 metric tonnes per annum through de-bottlenecking and ongoing expansion projects.

The company is also entering the premium On-Highway tire market in India through Passenger Car Radial (PCR) and Commercial Vehicle (CV) radial tires. CV tires were pilot launched in Q4 FY26, while PCR tires are expected to be launched in Q3 FY27.

In addition, Balkrishna Industries continues to strengthen its backward integration through its Carbon Black business. The company’s in-house Carbon Black plant supports raw material security and energy circularity through co-generation power. Capacity is expected to reach 360,000 metric tonnes per annum by Q1 FY27. Specialty grades from the plant have already received approvals for use in plastics, pipes, and inks.

As part of its expansion into passenger and commercial vehicle segments, the company introduced a new brand architecture comprising “BKT Tyres” for OHT and On-Highway businesses and “BKT Carbon” for its carbon business operations.

BKT currently has a presence across more than 160 countries and continues to strengthen brand visibility through global sports sponsorships, including Cricket Australia and the Women’s Premier League (WPL).

On the sustainability front, the company highlighted its ESG initiatives and operational achievements. The Bhuj plant received a Five-Star rating from the British Safety Council. Balkrishna Industries also reported a 21.37 per cent reduction in non-renewable grid electricity consumption. Through the BKT Foundation, the company continues to support healthcare and social initiatives, including robotic surgery systems for hospitals and cancer care support at Tata Memorial Hospital.

Overall, FY26 marked a year of operational stabilization and strategic positioning for Balkrishna Industries. While profitability remained under pressure, the company has laid out an aggressive roadmap focused on capacity expansion, product diversification, and global market share gains.

The company has a market cap of over Rs 43,788 crore. The stock price has declined over 17.52 per cent in the last 1 year.

The stock has delivered around 12.26 per cent returns from its 52-week low of Rs 2,015.40 per share.

Disclaimer: The article is for informational purposes only and not investment advice.

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