Balkrishna Industries Q2: Revenue jumps 45% on higher tyre volumes; dividend declared

Balkrishna Industries reported healthy revenue and volume growth in the September quarter, but higher growth in the top line did not translate into a similar rise in profitability.

The tyre maker also announced a strategic partnership with Italian major Pirelli to enter India’s passenger car tyre market, marking a new phase in its expansion plans.

The company reported a 7.3% year-on-year increase in net profit to ₹293 crore for the second quarter of FY27, compared with ₹273 crore a year ago. Revenue from operations jumped 45% to ₹3,472 crore from ₹2,394 crore in the corresponding quarter last year.

EBITDA rose 23.6% to ₹634 crore, against ₹513 crore a year ago. However, the EBITDA margin contracted to 18.3% from 21.4% in the year-ago period, reflecting a slower pace of growth in operating earnings compared with revenue.

Balkrishna Industries sold 91,397 metric tonnes of tyres during the quarter, registering a 30% year-on-year increase. Its shares closed 2.32% higher at ₹2,243.90 on the BSE ahead of the earnings announcement on Wednesday.

The company’s board has also declared an interim dividend of ₹4 per equity share of face value ₹2, translating into a 200% payout. The record date has been fixed as November 11, 2026.

BKT-Pirelli partnership to open up passenger car tyre market
Balkrishna Industries also highlighted the key aspects of its strategic partnership with Pirelli, aimed at tapping opportunities in India's passenger car tyre market.

Under the proposed arrangement, BKT will manufacture Pirelli-branded passenger car radial (PCR) tyres at its Bhuj facility, according to Pirelli’s specifications. A separate service agreement will also provide Pirelli’s technical support for testing BKT-branded tyres.

Production is expected to begin in 2027, with supplies set to ramp up gradually to 800,000 Pirelli-branded tyres by 2030. Pirelli has committed to a minimum annual offtake, with BKT making a corresponding capacity commitment.

The companies are also envisaging a 50:50 joint venture, subject to agreed conditions, to set up a new manufacturing facility in India for passenger car tyres under the two brands. The joint venture agreement and incorporation are targeted by December 31, 2030, subject to the fulfilment of conditions precedent.

BKT’s presentation estimates that Indian car registrations could grow by 5–7% annually between 2025 and 2030, while the premium car tyre market could expand nearly fivefold over the same period.

BKT lays out growth roadmap for FY30

Alongside its passenger car tyre ambitions, Balkrishna Industries has outlined a broader growth roadmap across its off-highway tyre (OHT), carbon black and on-road businesses.

The company aims for its OHT business to contribute around 70% of total revenue by FY30, while targeting a global market share of approximately 8%.
Its carbon black business is expected to account for around 10% of revenue by FY30, with BKT looking to strengthen its position as a preferred supplier to both tyre and non-tyre segments.

In the on-road business in India, the company is targeting a contribution of around 20% to revenue by FY30 and a market share of approximately 5%.
BKT expects blended margins to settle in the range of 23–25% once its growth plans reach full commercialisation.

Also Read: Aurobindo Pharma Q2 profit rises 33%, beats estimates; declares ₹7 interim dividend