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Earnings Call Transcript

Balkrishna Industries Earnings Call Transcript: Key Takeaways

Balkrishna Industries reported strong Q2 volume growth but margins faced severe headwinds from raw material inflation and freight costs.

Balkrishna Industries Q2 FY27 concall: date, live audio and summaryConcall page →
Guidance and delivery
Management target Revenue 20.0% 2030
Highlights
Revenue growthStandalone revenue ₹3,450 Cr, up 49% YoY.
MarginsEBITDA margin at 18.24%, hit by inflation and freight.
Demand visibilityPositive trends in India; stable in Americas; weather-related pressure in Europe.
Management confidenceBalanced, acknowledging significant cost headwinds despite strong volumes.

Growth

Standalone revenue grew 49% YoY to ₹3,450 Cr, driven by volume growth across OHT and Carbon Black.

Outlook

Management targets 5% market share and 20% turnover contribution from the on-road segment by 2030.

Risks

Persistent raw material inflation and high sea freight costs are expected to impact margins for several quarters.

Last quarter's promises, checked

Delivered

  • Phase II Carbon Black 360,000 MTPA → commissioned Q1 (= BEAT)

Partly delivered

  • ₹1,500-2,000 Cr more FY27 capex → H1 capex ₹1,850 Cr, FY total pending (= PARTIAL)
  • Gradual On-Highway ramp-up from Q2 → no on-road revenue disclosed (= PARTIAL)
  • Americas growth momentum to sustain → Americas described as stable (= PARTIAL)

Missed

  • Full pass-through of ~5% price hike in Q2 → hikes 2-3%, costs not fully passed on (= MISS)
  • ~2% margin hit from RM inflation → EBITDA margin 20.61% to 18.24% (= MISS)
  • Better EBITDA-to-PAT flow-through → PAT ₹432 Cr to ₹291 Cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: BALKRISIND. Summary written with AI assistance from the document.

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Balkrishna Industries Ltd: key numbers

Share price
₹2,400.00
Market cap
₹46,396 Cr
Revenue (annual)
₹10,823 Cr
Net profit (annual)
₹1,243 Cr
P/E (TTM)
32.6×Sector 31.6×
Promoter holding
58.29%+0.00% QoQ
FII holding
9.06%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Partnership

Balkrishna Industries Partnership

Balkrishna Industries signed a framework, offtake and service agreement with Pirelli Tyre for a future 50:50 joint venture to manufacture passenger car radial tyres in India. No monetary value is disclosed.