India · Delayed Price · Currency is INR Balkrishna Industries Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw a 15% sequential sales volume increase, with India outperforming and Europe rebounding due to destocking. EBITDA margin remained strong at 22.5%, while U.S. tariffs continued to impact margins and volumes. CapEx and sustainability initiatives progressed as planned.
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Quarterly and H1 volumes declined 4% year-over-year, mainly due to a 50% U.S. tariff, while EBITDA margins remained above 21%. Capex for the year is projected at INR 2,000-2,200 crore, with optimism for recovery in the U.S. and Europe as headwinds ease.
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Q1 FY26 saw resilient performance amid tariff and macroeconomic headwinds, with sales volumes slightly down and India showing strong growth. EBITDA margin was 23.8%, impacted by tariffs and product mix, while profit after tax declined due to mark-to-market losses. CAPEX projects and new product lines are progressing as planned.
Fiscal Year 2025
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Revenue grew 13% year-on-year to INR 10,615 crore with EBITDA margin at 25.3%. Strategic expansion into new tire categories and carbon black, supported by INR 3,500 crore capex, aims for INR 23,000 crore revenue by 2030, despite global uncertainties.
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Q3 and 9M FY25 saw double-digit revenue and EBITDA growth, with strong performance in America and India offsetting challenges in Europe. CapEx projects are on track, margins remain robust, and management maintains guidance for minor sales volume growth for FY25.
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Q2 and H1 FY25 delivered strong volume and revenue growth despite global headwinds, with EBITDA margin above 25% and minor sales volume growth expected for the year. Specialty carbon black plant was commissioned, and CapEx guidance was raised to INR 800–1,000 crore.
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Q1 FY25 saw 24% volume and 30% revenue growth year-over-year, with EBITDA margin at 26%. Despite strong Q1, only minor full-year growth is expected due to weak demand and rising costs. New CapEx and regulatory compliance initiatives are underway.