Balkrishna Industries to gain from volume recovery, market share expansion

Balkrishna's current valuation at 14 times FY27 enterprise value to operating profit is attractive given a strong return on invested capital of 25 per cent in FY26

In a weak demand environment, the country’s largest tyre maker by market capitalisation, Balkrishna Industries delivered a volume growth of 5 per cent in the third quarter of the financial year 2025 (Q3FY25).

 

While demand conditions continue to remain weak, the company has guided for a low single digit volume growth for FY25. Though there are multiple headwinds, brokerages believe that the company is well placed to benefit from a revival in demand going ahead.

 

IIFL Research expects strong earnings growth when demand momentum improves. Analysts led by Joseph George of the brokerage conservatively forecast 8-10 per cent volume growth