Balkrishna Industries posted a 45% surge in second-quarter revenue to ₹3,472 crore, driven by heavy tyre dispatches across global markets. But higher sales did not feed the bottom line at the same pace. Net profit crept up just 7.3% to ₹293 crore for the quarter ended September, compared with ₹273 crore in the year-ago period, according to the company’s regulatory filing.
EBITDA rose 23.6% to ₹634 crore, up from ₹513 crore a year earlier. Yet operating margins took a visible hit. Operating margin contracted 310 basis points to 18.3% from 21.4% in the corresponding period last year, revealing that cost pressures outpaced revenue expansion. Ahead of the board's announcement on Wednesday, shares of the tyre manufacturer climbed 2.32% to finish at ₹2,243.90 on the BSE.
Sales volumes reached 91,397 metric tonnes during the quarter—a 30% jump year-on-year. Rewarding investors, the board sanctioned an interim dividend of ₹4 per equity share of face value ₹2, amounting to a 200% payout. The record date stands at November 11, 2026.
| Financial Metric | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹3,472 crore | ₹2,394 crore | +45.0% |
| EBITDA | ₹634 crore | ₹513 crore | +23.6% |
| EBITDA Margin | 18.3% | 21.4% | -310 bps |
| Net Profit | ₹293 crore | ₹273 crore | +7.3% |
| Sales Volume | 91,397 MT | 70,305 MT | +30.0% |
Beyond the quarterly balance sheet, Balkrishna Industries executed a strategic entry into India’s passenger car tyre segment by partnering with Italy’s Pirelli. Under the pact, the Indian tyre maker will produce Pirelli-branded passenger car radial tyres at its Bhuj complex in Gujarat to exact Italian engineering standards. Production starts in 2027. Output will scale up to 800,000 tyres annually by 2030, supported by a committed minimum offtake contract from Pirelli.
Pirelli will also supply technical assistance to evaluate and test BKT-branded tyres. Looking further ahead, both manufacturers plan to establish a 50:50 joint venture company to build a greenfield passenger car tyre plant in India. The joint venture agreement and legal incorporation carry a deadline of December 31, 2030. Internal company assessments project Indian passenger car registrations will expand 5% to 7% annually through 2030, while the domestic market for premium car tyres could grow nearly fivefold over the same timeline.
Longer term, the company is rebalancing its operational basket across off-highway tyres, carbon black, and highway applications. Management targets off-highway tyres to deliver 70% of total revenue by FY30, anchoring an 8% share of the global market. The carbon black business will contribute roughly 10% of total revenue, while domestic on-road tyres will account for the remaining 20% alongside a 5% local market share. Once these operational assets achieve full commercial scale, management projects consolidated blended margins to settle between 23% and 25%.