Latest news with #BalkrishnaIndustriesLtd
Mint
3 days ago
- Automotive
- Mint
Margin management turns tricky for Balkrishna amid soft demand, new bets
Balkrishna Industries Ltd is facing earnings downgrades as the tyre maker grapples with twin headwinds: weak demand and margin compression. Its June-quarter (Q1FY26) performance was weighed down by muted demand in its key export market, Europe, and the impact of US tariffs, which have kept the ordering cycle volatile. Volumes declined 3% year-on-year to 80,664 tonnes in Q1, and the management refrained from providing a volume guidance for FY26. Revenue was largely flat at ₹2,759 crore, while Ebitda fell 8% to ₹656 crore. The 228 basis point (bps) drop in Ebitda margin to 23.8% was seen as a key disappointment. The company has guided for an operating margin of 24-25% for FY26. A base tariff of 10% applies to Balkrishna's exports to the US, and the company has been unable to pass on the entire increase to consumers. It has absorbed 40% of the impact, which is expected to persist through Q2FY26. 'With multiple US trade tariffs getting finalized at around 15% (EU/Japan), we believe India tariffs are likely to inch up from around 10%. This remains a near-term demand/margin headwind for Balkrishna," said a Nomura Global Markets Research report. It has cut its FY26 Ebitda and earnings per share forecast by 8% and 16% respectively. While raw material costs are expected to remain stable sequentially in Q2FY26, margin pressures are likely to continue. Balkrishna, which has a niche in the off-highway tyre (OHT) segment, recently announced plans to diversify into domestic tyre categories including truck and bus radials and passenger car radials (PCR). The concern, however, is that this expansion could be margin-dilutive over the medium term, given intense competition from established players. Balkrishna would launch commercial vehicle radial tyres by Q4FY26 and PCR tyres by Q3FY27.A capital expenditure of ₹3,500 crore has been outlined for the next three years. 'Considering the higher upfront investments in the new tyre segments which have higher competitive intensity and lower margins than the company's core business, and the lack of visibility for business normalcy of its core business, we remain cautious," said HDFC Securities. After hitting a 52-week low of ₹2,152.05 apiece on 7 April, following the Liberation Day tariff announcement, the stock has recovered to ₹2,746. It now trades at an undemanding 25x FY27 earnings estimates, according to Bloomberg. However, Balkrishna has yet to prove itself in the new segments, and striking a balance between gaining market share and protecting core returns could be a significant challenge.
Time of India
24-07-2025
- Automotive
- Time of India
Stock Radar: Balkrishna Industries stock breaks out from 1-year falling channel; what should investors do?
Balkrishna Industries Ltd, part of the tyre and rubber product segment, recently broke out from a falling channel pattern on the weekly charts, opening the door for further upside potential. Medium-term traders can consider buying the stock for a potential target above the Rs 3,000 level in the coming weeks, suggest experts. Balkrishna Industries (BKT) is an Indian multinational tire manufacturer specializing in off-highway tires. The company
Time of India
17-07-2025
- Automotive
- Time of India
Stock market update: Nifty Auto index falls 0.04%
NEW DELHI: The Nifty Auto index closed on a negative note on Thursday. Shares of Balkrishna Industries Ltd .(up 3.37 per cent), Bosch Ltd.(up 0.45 per cent), Hero MotoCorp Ltd .(up 0.44 per cent), Eicher Motors Ltd .(up 0.42 per cent) and Tata Motors Ltd .(up 0.4 per cent) ended the day as top gainers in the pack. Explore courses from Top Institutes in Select a Course Category Technology Data Analytics MCA Product Management Data Science Data Science healthcare MBA Artificial Intelligence Degree Healthcare Public Policy Leadership Cybersecurity others Operations Management Design Thinking Project Management Others Digital Marketing CXO Finance Management PGDM Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dhoni's Exclusive Home Interior Choice? HomeLane Get Quote Undo On the other hand, MRF Ltd.(down 1.27 per cent), Maruti Suzuki India Ltd .(down 0.71 per cent), Ashok Leyland Ltd .(down 0.69 per cent), TVS Motor Company Ltd.(down 0.64 per cent) and Exide Industries Ltd .(down 0.63 per cent) finished as the top losers of the day. The Nifty Auto index closed 0.04 per cent down at 24002.5. Benchmark NSE Nifty50 index ended down 100.6 points at 25111.45, while the BSE Sensex stood down 375.24 points at 82259.24. Live Events Among the 50 stocks in the Nifty index, 19 ended in the green, while 31 closed in the red. Shares of Vodafone Idea, Alok Industries , Ola Electric Mobilit , JP Power and LE Travenues Techno were among the most traded shares on the NSE. Shares of LE Travenues Techno, Quality Power Electr , Gujarat Apollo , Parag Milk Foods and Aegis Vopak Terminal hit their fresh 52-week highs in today's trade, while HDB Financial Servic , Shriram EPC(PP), R K Swamy, BDR Buildcon and IndInfravit Trust hit their fresh 52-week lows.
Business Standard
17-06-2025
- Automotive
- Business Standard
Balkrishna Industries Ltd drops for fifth straight session
Balkrishna Industries Ltd is quoting at Rs 2449.7, down 0.35% on the day as on 13:19 IST on the NSE. The stock tumbled 26.78% in last one year as compared to a 5.45% rally in NIFTY and a 9.74% fall in the Nifty Auto index. Balkrishna Industries Ltd fell for a fifth straight session today. The stock is quoting at Rs 2449.7, down 0.35% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is down around 0.42% on the day, quoting at 24841.65. The Sensex is at 81516.35, down 0.34%.Balkrishna Industries Ltd has eased around 8.95% in last one Nifty Auto index of which Balkrishna Industries Ltd is a constituent, has eased around 3.5% in last one month and is currently quoting at 23368.25, down 0.68% on the day. The volume in the stock stood at 90031 shares today, compared to the daily average of 6.4 lakh shares in last one month. The benchmark June futures contract for the stock is quoting at Rs 2450.3, down 0.55% on the day. Balkrishna Industries Ltd tumbled 26.78% in last one year as compared to a 5.45% rally in NIFTY and a 9.74% fall in the Nifty Auto index. The PE of the stock is 29.2 based on TTM earnings ending March 25.
Yahoo
26-05-2025
- Automotive
- Yahoo
Balkrishna Industries Ltd (BOM:502355) Q4 2025 Earnings Call Highlights: Strategic Growth ...
Release Date: May 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Balkrishna Industries Ltd (BOM:502355) has set a strategic goal to reach a revenue milestone of INR 23,000 crore by 2030, with a clear plan involving three growth levers. The company has achieved global leadership in the agricultural tire sector and plans to reinforce this position across all geographies. Balkrishna Industries Ltd (BOM:502355) is expanding its carbon black plant, which is expected to enhance revenue and margin potential. The company is planning to enter new tire categories for the Indian market, which is expected to contribute significantly to revenue by 2030. Despite geopolitical tensions and global economic uncertainty, the company delivered its highest-ever annual sales revenue, highlighting the robustness of its business strategy. Profit after tax for the quarter was down by 25%, primarily due to M2M loss and higher financial costs. The company faces challenges in entering new competitive segments, requiring significant investment in brand building and network expansion. There is uncertainty in providing guidance for the core business due to volatile global scenarios, including trade wars and geopolitical tensions. The company is absorbing part of the increased US tariff costs, which could impact profitability. The expansion into new tire categories may initially dilute margins until these segments reach full commercialization and scale. Warning! GuruFocus has detected 2 Warning Signs with BOM:502355. Q: Can you provide more clarity on the new segments Balkrishna Industries plans to enter over the next five years, considering the competitive nature of these markets? A: (Unidentified_4) Our strategy is based on our demonstrated success in the agriculture and other off-highway segments in India over the last five years. We believe our all-steel radial technology will support our entry into the truck bus radial markets in India, which is growing at 6.5%. We are confident in our ability to create a difference in the Indian market. Q: With the new segments, will there be changes in investment plans, particularly in brand visibility and network expansion? A: (Unidentified_2) We plan to maintain our current level of investment in brand visibility. As our turnover increases, the percentage of spend will decrease, leading to cumulative benefits over the five-year journey. Q: What are the capacities for the pilot plants of PCR and TBR, and are you targeting domestic or export markets? A: (Unidentified_4) The initial capacity is for the domestic market. Our truck bus radial tires will come from our existing mining TBR capacity, allowing early market entry. The car radial entry will follow later, focusing initially on the domestic market. Q: Can you provide guidance for FY26 in terms of volume and the specialty carbon black business? A: (Unidentified_2) We cannot provide guidance due to global volatility. The specialty carbon black business started trials last quarter, and it will take time to progress. We expect peak utilization by FY27. Q: How does the current tariff situation affect your inventory and market share strategy? A: (Unidentified_2) Inventory levels at our distributor level are stable. We plan to evolve our market strategy based on the response we receive and aim to maintain competitive advantages as we enter new markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
