Synopsis:
Balkrishna Industries targets Rs. 23,000 crore revenue by FY2030, driven by expansion in off-highway tires, carbon black, and new categories.
A leading global manufacturer of off-highway tires is on track for significant expansion. This article details the company’s ambitious growth strategy, projecting sustained 17% revenue growth targeting Rs. 23,000 crore by FY2030. Key to this plan is a major capital expenditure over three years, funding new ventures in carbon black, rubber tracks, and an additional tire category.
Balkrishna Industries Limited’s stock, with a market capitalisation of Rs. 52,257 crores, rose to Rs. 2,741.60, hitting a high of up to 2.07 percent from its previous closing price of Rs. 2,685.80. However, the stock over the past year has given a negative return of 18.2 percent.
Dividend Announcement
The Board has declared a first interim dividend of Rs. 4 per equity share (face value Rs. 2) for the financial year 2025-26. The dividend will be paid within 30 days of declaration to shareholders whose names appear on the record date, 31st July 2025.
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Company Guidance
BKT is aiming for strong revenue growth by 2030. The company plans to increase its revenue from Rs. 10,600 crore in 2025 to Rs. 23,000 crore by 2030, reflecting a 2.2 times increase in five years, with a compound annual growth rate (CAGR) of about 17%. This growth will come mainly from three areas: about 70% from OHT (Off-Highway Tires) segments, 10% from third-party sales of carbon black, and 20% from new tire categories launched for the Indian market.
To achieve this, BKT plans to invest Rs. 3,500 crore over the next three years in growth initiatives like carbon black production, rubber tracks, and new category tires. The company is also targeting an 8% global market share within the OHT segment. By focusing on these key strategies and investments, BKT expects to reach its ambitious revenue goal by 2030.
Q1 Financial Update
In Q1FY26, the company reported revenue of Rs. 2,760 crore, showing a modest 1.7 percent YoY growth from Rs. 2,714 crore in Q1FY25 and a flat 0.3 percent increase QoQ from Rs. 2,752 crore in Q4FY25. Over the last three years, revenue has grown at a CAGR of 8 percent, indicating steady top-line expansion.
However, net profit declined sharply to Rs. 288 crore in Q1FY26, down 41 percent YoY from Rs. 490 crore and 22 percent QoQ from Rs. 369 crore. Despite this short-term weakness, the company has maintained a 3-year profit CAGR of 2 percent and a robust ROE CAGR of 15 percent, reflecting long-term value creation.
Written By Fazal Ul Vahab C H
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