Balkrishna Industries soars 10% amid huge volume on healthy Q1 results

Analysts say that the high double-digit volume growth for the quarter was a positive surprise and reinforced the company's dominant position in the global off-highway segment.

Balkrishna Industries share price movement

 

Balkrishna Industries stock surged 10 per cent to ₹2,295 on the BSE in Thursday’s intra-day deals after the company reported healthy earnings for the April to June 2026 quarter (Q1FY27). The stock price of the tyre maker has recovered 15 per cent from its previous week low of ₹1,980.90 touched on July 24, 2026. The stock hit a 52-week high of ₹2,775 on February 10, 2026.

 

At 09:35 AM, Balkrishna Industries quoted 8 per cent higher at ₹2,257.15, as compared to 0.06 per cent rise in the BSE Sensex. The average trading volume at the counter jumped nearly eight-fold with a combined 1 million equity shares changing hands on the NSE and BSE.

 

 

Balkrishna Industries – Q1 results

 

In Q1FY27, Balkrishna reported a 25 per cent year-on-year (YoY) growth in standalone net sales at ₹3,445 crore, amid OHT (Off-Highway Tyres) sales volume of 93,770 tonne, up 16.2 per cent YoY. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins in Q1FY27 came in at 21 per cent, down 40 bps quarter-on-quarter (QoQ). Profit after tax (PAT) jumped 50 per cent YoY at ₹432 crore.

 

The company’s OHT business contributed 90 per cent to overall revenue. The company said it witnessed stable environment in Europe, while, India market performed exceptionally well.

 

Balkrishna Industries said it started supplies in commercial vehicles tyres i.e. Truck Bus Radial Tires in April 2026. 2-wheeler tyres product portfolio has been introduced with select products targeting domestic market.

 

Meanwhile, the board declared its first interim dividend of ₹4 per equity share (200 per cent) on the equity shares of ₹2 for the financial year 2026-27.  Check - TOP GAINERS NSE | TOP LOSERS NSE 

ICICI Securities view on Balkrishna Industries

 

High double-digit volume growth for the quarter was a positive surprise and reinforced the company’s dominant position in the global off-highway segment. For the quarter, the Indian market performed exceptionally well contributing 40 per cent of Q1 sales, while stable environment was seen in Europe, ICICI Securities said in a note.

 

Near-term profitability may face pressure from raw material inflation (expected to rise sequentially in Q2FY27) but price hikes, and currency tailwinds should help mitigate these headwinds, the brokerage firm said, awaiting company's commentary on demand scenario and margin recovery.  CHECK Stock Market LIVE Updates

Balkrishna Industries – Business overview

 

To accelerate the company’s Vision 2030, since August 2024, Balkrishna Industries has cumulatively announced a capex outlay of ₹6,800 crore, to be deployed through FY29. These investments are directed towards capacity expansion and infrastructure development across OHT and on-highway tyre categories, expansion of carbon black capabilities, AI-enabled automation in the on-highway business, and sustainability initiatives.

 

This roadmap includes ongoing manufacturing expansion of 35,000 MTPA, supported by continuous debottlenecking, to enhance OHT tyre capacity to 425,000 MTPA and support an 8 per cent global market share. In parallel, the company is ramping up its captive carbon black capacity to 360,000 MTPA by Q1 FY27, strengthening its integrated manufacturing advantage.

 

These investments also position us to scale the on-highway tyre business, with a targeted contribution of 20 per cent to overall revenues by FY30, Balkrishna Industries said in its FY26 annual report.  =============================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.