BKT reports weaker full-year earnings, steps up tire expansion with fresh capex

Mumbai, India — Balkrishna Industries Ltd (BKT) has reported flat revenue growth but a sharp drop in profit for the year ended 31 March (FY26), despite improving demand trends in the second half.

Indian tire and carbon black maker posted full-year revenue of INR106.6 billion (€950 million), largely unchanged from the previous year, while net profit declined 25% to INR12.2 billion.

Earnings (EBITDA) also softened, falling 10% year-on-year to INR24.2 billion, translating into a margin of 22.7%, down more than 250 basis points, said BKT in its full-year results 8 May.

The group indicated that demand conditions improved as the year progressed, pointing to a “good recovery in second half over first half in Europe”, alongside “improving traction in Americas” and “sustained momentum in India”.

In the fourth quarter, revenue rose 2% year-on-year to INR28.9 billion, supported by a 5% year-on-year increase in volumes.

Earnings, however, declined 6% year-on-year to INR6.6 billion and net profit was down 19% to INR3.0 billion, as margins narrowed to 22.9%.

The quarterly performance reflected stronger volumes but continued cost headwinds, said the Indian group.

Alongside the results, the group said its board had approved additional capital expenditure of INR20 billion, extending an ongoing investment cycle.

The new approval will support “capacity expansion & infrastructure development across both OHT & On-highway tire categories”, as well as automation and sustainability initiatives, said BKT.

This builds on earlier capex commitments of INR13 billion for off-highway tires and INR35 billion spanning on-highway tires, carbon black, rubber tracks and power capacity.

The broader investment programme remains central to BKT’s strategy of scaling manufacturing and diversifying beyond its core segment.

During FY26, the Indian group said it advanced its push into on-highway tires, launching commercial vehicle products in February, with distribution networks under development. (ERJ report)

PCR tires pilot, BKT said, will follow in the third quarter of the current financial year (ending 31 March 2027), and will ramp up gradually.

It noted that the “early response from market has been encouraging” for its 'on-highway' tires in its initial ramp-up phase.

The company described its approach to entering new segments as a “planned modular entry”, beginning with the replacement market in India and gradually scaling capacity.

Over the medium-term, BKT said confirmed its revenue target of INR230 billion by FY30, equivalent to roughly 2.2x growth, with a five-year CAGR of around 17%.

In terms of product diversification, the group expects off-highway tires contributing to 70% of overall sales by FY30, ‘on-highway’ tires 20% and carbon black the remaining 10%.

BKT is also targeting 8% global market share in the off-highway segment, supported by capacity expansion and product development.