Balkrishna Industries' Q1 FY 2025-26 Quarterly Results

Result Summary

• Balkrishna Industries Ltd reported a 0.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 0.3%.
• Its expenses for the quarter were up by 12.1% QoQ and 10.6% YoY.
• The net profit decreased 40.8% QoQ and decreased 41.2% YoY.
• The earnings per share (EPS) of Balkrishna Industries Ltd stood at 14.9 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Balkrishna Industries Ltd is a prominent player in the tire manufacturing industry, primarily focusing on the production of off-highway tires. These tires are used in sectors such as agriculture, construction, and industrial applications. The company is well-regarded for its strong commitment to quality and innovation, often catering to the niche markets with specialized tire solutions. As of the latest updates available, there have been no significant publicized developments regarding major strategic shifts or changes in their operational footprint. Balkrishna Industries continues to uphold its reputation for providing durable and high-performance products in its segment.

Revenue

In Q1FY26, Balkrishna Industries Ltd reported a total income of ₹2867.16 crores. This represents a slight increase of 0.5% compared to the previous quarter, Q4FY25, where the total income was ₹2852.66 crores. However, when compared to the same quarter in the previous fiscal year, Q1FY25, there is a marginal decline of 0.3%, with the total income being ₹2876.13 crores then. This indicates relatively stable revenue performance on a quarter-over-quarter basis, with only a minor year-over-year reduction.

Profitability

For the quarter ending in Q1FY26, Balkrishna Industries Ltd reported a Profit Before Tax (PBT) of ₹394.38 crores, which is a significant decline of 39.0% from Q4FY25, where the PBT was ₹646.84 crores. Year-over-year, the PBT has decreased by 38.4% from ₹639.92 crores in Q1FY25. The Profit After Tax (PAT) followed a similar trend, standing at ₹288.30 crores in Q1FY26, marking a 40.8% decrease from the previous quarter's ₹486.75 crores and a 41.2% fall compared to ₹489.99 crores in Q1FY25. These figures reflect a considerable contraction in profitability both on a quarterly and annual basis.

Operating Metrics

Total expenses for Q1FY26 amounted to ₹2472.78 crores, reflecting a 12.1% increase from the ₹2205.82 crores recorded in Q4FY25. Comparing year-over-year, expenses rose by 10.6% from ₹2236.21 crores in Q1FY25. This increase in expenses has impacted the overall profitability margins. The Earnings Per Share (EPS) also experienced a decline, standing at ₹14.90 in Q1FY26, down 40.9% from ₹25.20 in Q4FY25, and a 41.3% decrease from ₹25.40 in Q1FY25. This decrease in EPS aligns with the reduced profitability metrics observed in this quarter.