Balkrishna Industries Q2 FY27 results: net profit up 7.1% to ₹292.62 crore, revenue up 45.1%

How did Balkrishna Industries perform in Q2 FY27?

Consolidated revenue for the July–September 2026 quarter rose 45.1% to ₹3,471.74 crore from ₹2,393.45 crore in Q2 FY26. Against Q1 FY27, revenue was higher by ₹16.47 crore, or 0.5%. EBITDA increased 23.9% year on year to ₹633.52 crore, but fell 14.9% from ₹744.40 crore in the previous quarter.

Consolidated EBITDA margin was 18.2% in Q2 FY27, compared with 21.4% in Q2 FY26 and 21.5% in Q1 FY27. Profit before tax rose 9.0% year on year to ₹389.36 crore, while net profit increased 7.1% to ₹292.62 crore and basic EPS rose to ₹15.13. Against Q1 FY27, net profit fell 35.1% and EPS fell 35.1% to ₹15.13. Standalone revenue was ₹3,490.53 crore and standalone net profit was ₹291.13 crore.

What changed in Balkrishna Industries' costs and profit?

Total expenses rose 48.3% year on year to ₹3,125.90 crore, exceeding the 45.1% increase in revenue. Cost of materials increased by ₹860.23 crore, or 77.6%, to ₹1,968.45 crore, while employee cost rose ₹32.56 crore to ₹176.06 crore. Other expenses were higher by ₹118.37 crore at ₹704.89 crore, depreciation increased ₹27.61 crore to ₹220.20 crore and finance costs rose ₹34.94 crore to ₹67.48 crore.

Other income fell ₹27.68 crore, or 38.9%, to ₹43.52 crore from ₹71.20 crore. There was no exceptional item. Tax expense increased ₹12.63 crore, or 15.0%, to ₹96.74 crore from ₹84.11 crore. Against Q1 FY27, total expenses rose 5.8%, while other income fell 56.3% and finance costs rose 83.5%, contributing to lower quarterly profit.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue rose 34.4% to ₹6,927.01 crore from ₹5,153.47 crore in H1 FY26. Total income increased 32.6% to ₹7,070.20 crore, profit before tax rose 31.8% to ₹990.41 crore and net profit rose 32.4% to ₹743.39 crore. Basic EPS increased from ₹29.04 to ₹38.45.

The first-half result included no exceptional item. Profit before tax for H1 FY27 was ₹990.41 crore, compared with ₹751.68 crore in H1 FY26, while net profit attributable to owners was ₹234.97 crore for the quarter and ₹863.52 crore for the half year, as shown in the results filing.

What do the balance sheet and cash flow show?

Consolidated total assets increased to ₹20,668.96 crore on 30 September 2026 from ₹17,766.34 crore on 31 March 2026. Total equity rose to ₹11,664.17 crore from ₹10,955.29 crore, while borrowings were ₹6,046.60 crore compared with ₹4,105.56 crore. Cash and cash equivalents increased to ₹102.96 crore from ₹60.92 crore. Inventories rose to ₹2,563.05 crore from ₹1,808.47 crore, trade receivables to ₹1,897.95 crore from ₹1,446.57 crore and trade payables to ₹1,026.97 crore from ₹912.26 crore.

H1 FY27 operating cash flow was ₹26.82 crore, compared with ₹1,262.85 crore in H1 FY26. Investing cash flow was negative ₹1,818.80 crore against negative ₹1,296.25 crore, while financing cash flow was ₹1,834.14 crore against ₹28.67 crore. Capital expenditure was ₹1,966.83 crore, compared with ₹1,683.69 crore a year earlier.

How has Balkrishna Industries done over the last 8 quarters?

Revenue rose in each of the last four quarters on a year-on-year basis, while profit rose year on year in each of the last two quarters. In the quarterly series, revenue reached its highest level in Q2 FY27 at ₹3,471.74 crore, while the lowest was Q2 FY26 at ₹2,393.45 crore. The latest quarter’s revenue was only slightly above Q1 FY27’s ₹3,455.27 crore.

Net profit in the series peaked at ₹450.77 crore in Q1 FY27 and bottomed at ₹273.19 crore in Q2 FY26; Q2 FY27 stood at ₹292.62 crore. EBITDA margin was highest at 23.5% in Q3 FY25 and Q3 FY26, and lowest at 18.3% in Q1 FY26, before ending the latest quarter at 18.2%. The current direction is higher revenue, but lower profit and margin than the previous quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also declared a second interim dividend of ₹4 per equity share, representing 200%, on equity shares of ₹2 face value for FY 2026-27. Payment is to be credited or dispatched within 30 days to shareholders on the 11 November 2026 record date.

The board’s meeting also included a limited review report on the unaudited financial results by Jayantilal Thakkar & Co. and joint statutory auditors Deloitte Haskins & Sells. The same-day investor communication set out the company’s revenue-growth roadmap and related expansion priorities; no fund raise or appointment was stated in the supplied filings.

What did Balkrishna Industries' management say?

Management said the investor presentation targeted “2.2x Revenue Growth by 2030” and approximately ₹23,000 crore of revenue by FY30, with a five-year CAGR of about 17%. The stated FY30 mix was about 70% OHT business, 10% third-party carbon-black sales and 20% on-road business. Management also set out overall capex of ₹6,800 crore through FY29.

Management said ongoing OHT expansion and debottlenecking would take tyre capacity to 425,000 MTPA, with an 8% global OHT market share as the stated objective and 10% remaining a strategic goal. For the India on-road business, management set a target of approximately 5% market share by FY30. The presentation said Pirelli production is planned to begin in 2027, while the proposed 50:50 joint venture remains subject to conditions precedent.

Management identified margin compression, working-capital cash conversion, funding and liquidity, execution and conditionality, and capital intensity as risks. It said the H1 working-capital change was negative ₹1,224 crore, leaving net cash from operating activities at negative ₹1 crore. Management also said the Pirelli joint venture agreement and incorporation are subject to conditions precedent and the passenger-car radial ramp is still ahead.