Balkrishna Industries faces tariff headwinds, eyes $2.75bn revenue by 2030

Balkrishna Industries Limited reported a 4% year-on-year volume de-growth for Q2 and H1 FY26, with volumes at 70,252 MT and 150,916 MT respectively. Standalone revenue for Q2 was INR2,360 crore, while H1 revenue was INR5,079 crore, experiencing a marginal year-on-year decline due to realized foreign exchange losses of INR68 crore in Q2 and INR70 crore in H1. The company noted significant challenges, including increased U.S. import duties to 50% on Indian products, severely impacting its U.S. sales, which previously represented 10% of last year's sales volume.

Despite these headwinds, BKT's standalone EBITDA for Q2 was INR500 crore with a 21.5% margin, and H1 EBITDA reached INR1,155 crore with a 22.7% margin. Profit after tax for Q2 was INR265 crore, and H1 profit after tax was INR552 crore. The company incurred INR1,737 crore in capex for the first half of the year, with an expected year-end total of INR2,000 to INR2,200 crore.

BKT continues to invest in strategic initiatives, including strengthening its market position in India and Europe, and expanding its carbon black business to derisk operations. The company maintains its long-term vision of achieving INR23,000 crore in revenue by 2030, supported by new product development, enhanced testing facilities, and brand-building efforts such as sponsoring the Australia, India Men's ODI and T20s International Series.