Balkrishna Industries Ltd logo

Balkrishna Industries Ltd

BALKRISIND NSE

Balkrishna Industries Limited (BKT) started its Off-Highway tyre business in 1987. For over 30 years, BKT has successfully focused on specialist segments such as agricultural, construction and industrial as well as earthmoving, port and mining, ATV, and gardening applications. [1]

AI Verdict: HOLD Confidence: 5%

Balkrishna Industries trades at a PE of 34.8x with declining profitability (TTM profit growth at -18%) and muted sales growth of 4% TTM. While the company has a strong 10-year track record with 13% sales CAGR and 21% stock CAGR over a decade, near-term headwinds and majority analyst sell/hold ratings (82% combined) warrant caution at current valuations.

Key Fundamentals

MidcapTyresAutomobiles
Market Cap
₹43,645 Cr
Volatility
Moderate
P/E Ratio
34.74
EBITDA
₹2,300 Cr
Return on Equity
16.62%
Debt to Equity
0.33
Book Value
₹566.7
EPS
₹84.3
52W High
₹2,801.3
52W Low
₹1,970

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 17.4%

Growth Rate

Revenue Growth
-1.48% ↘
Net Income Growth
-24.13% ↘
Cash Flow Change
-15.27% ↘
ROE
-4.15% ↗
ROCE
-0.93% ↗
EBITDA Margin (Avg.)
-23.86% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Balkrishna Industries trades at a PE of 34.8x with declining profitability (TTM profit growth at -18%) and muted sales growth of 4% TTM. While the company has a strong 10-year track record with 13% sales CAGR and 21% stock CAGR over a decade, near-term headwinds and majority analyst sell/hold ratings (82% combined) warrant caution at current valuations.

Bull Case 7
  • Strong long-term sales CAGR of 13% over both 5-year and 10-year periods demonstrates consistent revenue growth capability
  • 10-year stock CAGR of 21% reflects significant long-term wealth creation for shareholders
  • 10-year average ROE of 17% indicates historically efficient capital allocation and strong business economics
  • Market cap of Rs 42,789 crore provides scale advantages and institutional investor comfort in the off-highway tyre niche
  • Consistent dividend payout ratio of 17.4% shows commitment to shareholder returns despite cyclical pressures
  • 5-year average ROE of 15% remains above cost of equity for most Indian manufacturers, indicating value creation continues
  • 3-year compounded profit growth of 8% shows underlying earnings recovery potential despite recent TTM weakness
Bear Case 8
  • TTM profit growth of -18% signals significant near-term earnings deterioration and margin compression
  • PE of 34.8x is elevated given TTM sales growth of only 4%, implying a PEG ratio well above 2x on near-term growth
  • 47% of analysts rate the stock a SELL (8 out of 17 analysts), the highest proportion among the three rating categories
  • 1-year stock return of -7% indicates the market is already de-rating the stock amid weakening fundamentals
  • 3-year stock CAGR of -3% shows prolonged underperformance, suggesting structural re-rating risk
  • Last year ROE declined to 12% from 3-year average of 14% and 10-year average of 17%, indicating deteriorating return profile
  • Only 17.65% of analysts (3 out of 17) recommend a BUY, reflecting weak Street conviction at current levels
  • 5-year stock CAGR of 0% means shareholders have earned no capital appreciation over half a decade despite 13% sales growth

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 4
  • Net profit fell 18% in FY26 May 27

    Net profit declined 18% to ₹1,243 crore while revenue growth slowed to just 3% (₹10,823 crore), reflecting global market headwinds including US tariffs and West Asia logistics disruptions.

  • Export share declining sharply May 27

    Export contribution in the off-highway tyre segment fell to 64% in FY26 from 71% a year earlier and 82% in FY22, indicating shrinking international business.

  • Stock underperforming Nifty Auto May 27

    Shares declined 11% over the past year versus a 12% gain in Nifty Auto, reflecting investor concerns about global exposure and slowing growth.

  • Geopolitical and tariff risks May 27

    Trump administration tariffs and West Asia war-related logistical challenges are creating multiple international headwinds for the company's export-heavy tyre business.

Positives 4
  • Revenue target ₹23,000 Cr by FY30 May 27

    Company aims to more than double revenue to ₹23,000 crore by FY2030 through diversification into on-road tyres, carbon black production, and deeper domestic market penetration.

  • On-highway segment entry May 27

    Balkrishna entered the on-highway segment with products for two-wheelers and commercial vehicles, with first phase focused on India to reduce export dependence.

  • Global OHT market share upside May 27

    Company holds only 6-7% of the $20 billion global OHT segment with analysts seeing potential to reach 8% through deeper penetration and new product additions.

  • Dividend record date fixed Jul 17 Jun 18

    Final dividend for FY26 record date set for July 17, 2026, subject to AGM approval on July 29, 2026.

Neutral 3
  • Deputy CFO resigns Jun 23

    Ravi Narayan Joshi resigns as Deputy CFO effective July 25, 2026, to pursue new professional opportunities.

  • New CFO appointed Jun 17

    Saroj Kumar Khuntia appointed CFO effective June 18, 2026, succeeding retiring Madhusudan Bajaj.

  • ₹68 Cr block trade on NSE Jun 15

    Institutional block trade of approximately 3.29 lakh shares at ₹2,071 per share totaling ₹68.15 crore executed on NSE.

TL;DR: Balkrishna Industries faces near-term earnings pressure with FY26 net profit down 18% and revenue growth at just 3%, driven by geopolitical headwinds and declining export share. The company is proactively diversifying into on-road tyres and carbon black while targeting ₹23,000 crore revenue by FY30. Management transitions at the CFO level appear orderly. The strategic pivot is sound but execution risk remains elevated as the company navigates tariff uncertainty and intensifying competition from players like CEAT.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,317
2,159
2,253
2,274
2,682
2,714
2,420
2,560
2,752
2,760
2,393
2,737
2,933
Expenses
1,837
1,658
1,720
1,734
2,001
2,051
1,840
1,960
2,139
2,254
1,882
2,094
2,293
Operating Profit
480
501
533
541
681
664
580
601
614
506
511
643
640
OPM %
21%
23%
24%
24%
25%
24%
24%
23%
22%
18%
21%
24%
22%
Other Income
57
106
107
66
171
162
90
187
99
107
71
77
-4
Interest
26
22
24
36
31
22
41
16
50
31
33
34
36
Depreciation
156
155
160
161
174
163
166
173
178
188
193
195
199
PBT
355
430
456
409
647
640
463
600
485
394
357
491
401
Tax %
27%
23%
24%
25%
25%
23%
25%
25%
24%
27%
24%
22%
25%
Net Profit
260
332
347
305
487
490
347
449
369
288
273
382
299
EPS in Rs
13.44
17.17
17.97
15.8
25.18
25.35
17.95
23.25
19.06
14.91
14.13
19.77
15.49
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
3,813
3,237
3,723
4,444
5,210
4,811
5,783
8,295
9,760
9,369
10,447
10,823
Expenses
3,086
2,371
2,592
3,341
3,904
3,537
3,972
6,286
8,047
7,113
7,989
8,523
Operating Profit
727
866
1,131
1,103
1,306
1,274
1,811
2,009
1,712
2,256
2,458
2,300
OPM %
19%
27%
30%
25%
25%
26%
31%
24%
18%
24%
24%
21%
Other Income
277
131
254
340
215
250
171
438
342
449
539
252
Interest
48
40
22
15
12
11
12
9
48
113
129
134
Depreciation
244
282
304
311
333
374
416
455
571
651
681
775
PBT
713
674
1,059
1,116
1,177
1,140
1,555
1,982
1,435
1,941
2,187
1,644
Tax %
34%
34%
32%
34%
34%
16%
24%
28%
26%
24%
24%
24%
Net Profit
473
446
717
736
774
960
1,178
1,435
1,057
1,471
1,655
1,243
EPS in Rs
24.45
23.06
37.08
38.06
40.02
49.64
60.91
74.25
54.7
76.12
85.61
64.3
Div. Payout %
5%
12%
11%
21%
20%
40%
28%
38%
29%
21%
19%
12%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
19
19
19
39
39
39
39
39
39
39
39
39
Reserves
2,257
2,756
3,524
4,045
4,615
4,970
5,961
6,894
7,518
8,815
10,349
10,917
Borrowings
2,358
1,898
1,391
867
871
932
1,001
2,529
3,347
3,099
3,267
4,111
Other Liabilities
685
725
855
927
954
866
1,166
1,517
1,444
1,731
1,980
2,700
Total Liabilities
5,318
5,398
5,789
5,878
6,479
6,806
8,166
10,979
12,348
13,685
15,635
17,766
Fixed Assets
2,415
2,859
2,849
2,849
2,786
3,308
3,370
4,019
5,384
6,317
6,941
7,409
CWIP
634
231
110
119
600
587
856
1,258
1,392
944
986
2,472
Investments
444
836
1,349
1,103
1,083
1,062
1,418
1,897
2,037
2,686
3,264
3,124
Other Assets
1,825
1,473
1,481
1,808
2,010
1,850
2,523
3,805
3,535
3,737
4,443
4,761
Total Assets
5,318
5,398
5,789
5,878
6,479
6,806
8,166
10,979
12,348
13,685
15,635
17,766
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
984
1,072
847
750
820
1,173
1,339
908
1,448
2,082
1,764
2,249
Investing
-435
-552
-563
-92
-636
-678
-1,173
-1,897
-1,783
-1,475
-1,480
-2,523
Financing
-130
-625
-589
-654
-165
-495
-158
980
359
-601
-279
254
Net Cash Flow
419
-105
-306
4
20
1
8
-9
23
5
6
-19
Free Cash Flow
614
833
666
339
86
390
416
-681
-304
1,001
316
-749
CFO/OP
165
151
103
103
94
115
93
68
105
111
91
115
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
56
43
40
39
36
45
48
48
42
56
52
49
Inventory Days
76
102
110
105
113
105
148
162
124
108
129
126
Days Payable
74
88
87
70
58
65
103
80
37
66
54
64
Cash Conversion Cycle
58
58
64
75
92
84
93
130
129
99
126
111
Working Capital Days
-23
-61
-38
76
13
-4
7
-3
-10
-17
-16
0
ROCE %
17%
15%
20%
22%
22%
17%
24%
24%
14%
16%
17%
12%

Shareholding Pattern

As of Mar 2026
Promoters 58.29%
DIIs 24.26%
FIIs 11.13%
Public 5.19%
Others 1.13%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
58.30%
58.30%
58.30%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
58.29%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
12.24%
12.61%
11.72%
11.28%
11.46%
10.50%
10.70%
11.00%
11.13%
DIIs
14.59%
14.09%
12.56%
11.59%
11.79%
11.17%
18.20%
20.23%
20.30%
20.16%
21.23%
20.71%
22.07%
22.43%
23.45%
23.95%
23.78%
24.84%
24.69%
24.43%
24.26%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
Public
7.28%
6.64%
7.05%
7.41%
7.56%
7.53%
8.17%
7.42%
7.23%
6.53%
6.33%
6.09%
6.03%
5.38%
5.24%
5.17%
5.09%
5.20%
5.15%
5.13%
5.19%
Others
19.83%
20.98%
22.10%
22.71%
22.36%
23.01%
15.34%
14.06%
14.18%
15.02%
14.15%
14.90%
1.35%
1.27%
1.29%
1.30%
1.37%
1.16%
1.15%
1.14%
1.13%
No. of Shareholders
0
94,371
82,072
1,04,526
1,27,816
1,39,913
1,35,395
1,73,802
1,46,804
1,40,490
1,36,214
1,25,341
1,34,831
1,23,435
1,24,388
1,18,966
1,23,755
1,27,401
1,23,406
1,23,337
1,20,740

Documents

1
Concall - May 2017 May 2017
2
Concall - Jul 2017 Jul 2017
3
Concall - Nov 2017 Nov 2017
4
Concall - Feb 2018 Feb 2018
5
Concall - May 2018 May 2018

Frequently Asked Questions about Balkrishna Industries Ltd

What does Balkrishna Industries Ltd do?
Balkrishna Industries Limited (BKT) started its Off-Highway tyre business in 1987. For over 30 years, BKT has successfully focused on specialist segments such as agricultural, construction and industrial as well as earthmoving, port and mining, ATV, and gardening applications. [1]
Where is Balkrishna Industries Ltd (BALKRISIND) listed?
Balkrishna Industries Ltd is listed on the Indian stock exchanges. It is listed on NSE: BALKRISIND and BSE: 502355. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Balkrishna Industries Ltd belong to?
Balkrishna Industries Ltd operates in the Consumer Discretionary sector within the Auto Components industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Balkrishna Industries Ltd?
Balkrishna Industries Ltd has a market capitalisation of approximately ₹43645.22 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Balkrishna Industries Ltd?
The Price-to-Earnings (PE) ratio of Balkrishna Industries Ltd is 34.74. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Balkrishna Industries Ltd?
Over the past 52 weeks, Balkrishna Industries Ltd has traded between a low of ₹1,970 and a high of ₹2,801.3. This range helps investors understand the stock's price volatility and recent trading levels.
Does Balkrishna Industries Ltd pay dividends?
Yes, Balkrishna Industries Ltd has a dividend yield of 0.72%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Balkrishna Industries Ltd?
Balkrishna Industries Ltd has a Return on Equity (ROE) of 16.62%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Balkrishna Industries Ltd on Tapetide?
On Tapetide, you can view Balkrishna Industries Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Balkrishna Industries Limited (BKT) started its Off-Highway tyre business in 1987. For over 30 years, BKT has successfully focused on specialist segments such as agricultural, construction and industrial as well as earthmoving, port and mining, ATV, and gardening applications. [1]

Website bkt-tires.com
CEO Mr. Arvind Kumar Mahabirprasad Poddar B.Com
Employees 3,758
Listed 2006-01-27
Face Value ₹ 2
Issued Size 19,33,17,190

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