Balkrishna Industries Ltd

Terms and structure

• Type: rated, listed, senior, unsecured, redeemable, non-cumulative, non-convertible debentures.
• Mode: private placement to eligible investors.
• Aggregate amount: up to INR 550 crores.
• Number and value: 55,000 NCDs of INR 1 lakh each.
• Listing: to be listed on BSE Limited.
• Tenure and coupon: details to be disclosed at allotment.
• Charge: no charge over assets.
• Limit: within borrowing limits under Section 180(1)(c) of the Companies Act.
• Approval: Finance Committee approved issuance and allotment.
• Delegation: Board delegated powers for determining terms.

Approvals and regulatory status

• Date of approval: 18 August 2026 by Finance Committee.
• Governance: Board delegated powers to Finance Committee for terms.
• Status: within current borrowing limits; private placement to eligible investors.
• Listing: to be listed on BSE Limited.

Financial Performance

• Q1 FY27 stand-alone revenue ₹3,409 crores, up 24% YoY; OHT volume 93,770 MT, +16%.
• EBITDA ₹703 crores; margin 20.61%; PAT ₹432 crores for the quarter.
• Standalone revenue includes FX loss of ₹36 crores.
• Quarter capex approximately ₹1,000 crores; gross debt ₹4,690 crores; cash ₹2,965 crores.
• Net debt around ₹1,725 crores after quarter.
• Board recommended first interim dividend of ₹4 per equity share.
• New CFO Saroj Khuntia joined in July 2026.

Segment and Product Update

• OHT volume 93,770 MT; YoY +16%; India contribute 40% of volumes.
• Europe market share around 7–8%; U.S. share about 3–4%.
• Price hikes ~5% in Q1; full pass-through expected this quarter.
• Raw-material inflation ~5% in Q1; pass-through ~3% in prices.
• Q2 expected raw-material inflation ~5%; pass-through ~3% with ~2% margin impact.
• Freight rate around 5% of revenue; could rise if conditions persist.
• On-Highway launched distribution network; ramp-up starts Q2; 2-wheeler tires introduced; YOU FORWARD.
• India mix rising; On-Highway is small; ramp-up with margin discipline.

Capex and Projects

• Carbon Black line commissioned at Bhuj; capacity 360,000 MTPA; capex ₹800 crores.
• Power capacity at Bhuj increased to 64 MW; capex ₹125 crores.
• Balance capex projects ~₹3,000 crores; progressing as per schedule.
• Total capex plan ₹6,800 crores; ₹3,800 crores spent; ₹3,000 crores balance.
• FY27 capex guidance: ₹1,500–₹2,000 crores to be spent this year.

Balance Sheet and Cash Flow

• As of 30 Jun 2026, gross debt ₹4,690 crores; cash ₹2,965 crores.
• Net debt ≈₹1,725 crores after quarter.
• Dividend policy: first interim ₹4 per share recommended.

Q&A Highlights

• U.S. share expected to revert to 15–16% as markets recover.
• Europe prebuying not observed; dealer inventories remain normal.
• FY27 capex: spend ₹1,500–₹2,000 crores; total capex ₹6,800 crores.
• On-Highway revenue target of ₹5,000 crores by 2030; ramp-up plan in place.
• 70 distributors added; pan-India expansion through dealers as production grows.
• India employee costs up 18% YoY; wage hikes and new hires for new businesses.

Guidance and Outlook

• Total capex ₹6,800 crores; ₹3,000 crores balance; FY27 spend ₹1,500–₹2,000 crores.
• On-Highway target ₹5,000 crores revenue by 2030.
• India revenue mix to reach 20% by FY30.
• U.S. market share to improve to 15–16% in Americas.
• Europe demand improving; geopolitical and monsoon risks remain watchpoints.

Meeting Details

• Date: 30 July 2026.
• Type/Mode: group audio conference call.
• Event: Q1 & FY27 Results conference call (organised by Balkrishna Industries).

Participants

• Key company participants: Director & Company Secretary and Compliance Officer.

Purpose

• Purpose: discuss Q1 and FY27 results with investors/analysts.

Additional Notes

• Recording is available on the company's website.

AGM Details

• AGM held on 29 July 2026 at 11:30 a.m. IST via VC/OAVM.
• Cut-off date: 22 July 2026; total shareholders on record: 122043.
• Voting mode: remote e-voting and e-voting at the AGM.

Resolutions & Outcomes

• Resolution 1 (Ordinary): Adoption of standalone and consolidated financial statements.
• Resolution 2 (Ordinary): Final dividend of Rs 4.00 per equity share.
• Resolution 3 (Ordinary): Re-appointment of Vijaylaxmi Poddar (retiring by rotation).
• Resolution 4 (Ordinary): Re-appointment of Vipul Shah (retiring by rotation).
• Resolution 5 (Ordinary): Re-appointment of Ashok Saraf (retiring by rotation).
• Resolution 6 (Ordinary): Re-appointment of Vipul Shah as Whole Time Director & CS.
• Resolution 7 (Ordinary): Appointment of Deloitte Haskins & Sells as Joint Statutory Auditors.
• Resolution 8 (Ordinary): Remuneration to RA & Co., Cost Accountants for 2027.

Dividend

• Final dividend declared: Rs 4.00 per equity share for FY2025-26.

Directors & Appointments

• Vijaylaxmi Poddar retires by rotation and is reappointed.
• Vipul Shah reappointed as Director and as Whole Time Director & Company Secretary.
• Ashok Saraf retires by rotation and is reappointed.

Auditors & Remuneration

• Deloitte Haskins & Sells Chartered Accountants LLP appointed as Joint Statutory Auditors.
• Remuneration to RA & Co., Cost Accountants ratified for FY2027.

AGM Details

• Held on 29 July 2026 at 11:30 IST via VC/OAVM.
• Chaired by Shri Arvind M Poddar, CMD.
• Notice read; e-voting provided; Scrutinizer appointed.

Key Resolutions

• Adopt standalone and consolidated financial statements for year ended 31 March 2026.
• Declare Final Dividend on equity shares for FY 2025-26.
• Re-appoint Vijaylaxmi Poddar as director, retiring by rotation.
• Re-appoint Vipul Shah as director, retiring by rotation.
• Re-appoint Ashok Saraf as director, retiring by rotation.
• Re-appoint Vipul Shah as Whole Time Director and Company Secretary.
• Appoint Deloitte Haskins & Sells as Joint Statutory Auditors.
• Ratify remuneration to RA & Co., Cost Accountants for FY 2026-27.

Dividend

• Interim dividend paid; final dividend declared at Rs 4.00 per equity share.
• Dividend to be credited after 29 July 2026 within statutory time.

Directors

• Vijaylaxmi Poddar reappointed as director, retiring by rotation.
• Vipul Shah reappointed as director, retiring by rotation.
• Ashok Saraf reappointed as director, retiring by rotation.
• Vipul Shah reappointed as Whole Time Director and Company Secretary.

Auditors

• Deloitte Haskins & Sells appointed as Joint Statutory Auditors.

Voting Results

• Voting results to be disseminated to stock exchanges and NSDL.
• No numerical results disclosed in filing.

Business Overview

• Leading Indian Off-Highway tire manufacturer and exporter.
• Specializes in tires for agriculture, construction, mining, and industrial applications.
• In-house carbon black plant supports raw material security and cost efficiency.
• Growth focus: capex-driven capacity expansion and On-Highway India entry.

Key Operational Highlights

• Q1FY27 OHT sales 93,770 MT, up 16% YoY.
• Phase 2 carbon black plant commissioned; capacity to 360,000 MTPA; 64 MW captive power.
• Started CV tyres (Truck-Bus Radial) supplies in Apr 2026.
• 2-wheeler tyres portfolio launched for domestic market.
• YOU FORWARD 24x7 journey assistance launched for two-wheeler riders.
• PCR tires to be launched as per schedule.

Financial Performance

• Total income Rs 3,409 cr, up 24% YoY.
• Revenue from operations Rs 3,445 cr; PAT Rs 432 cr, up 50% YoY.
• EBITDA Rs 703 cr; EBITDA margin 20.6%.
• PAT margin 12.7%.
• Sales volume 93,770 MT, up 16% YoY.
• Interim dividend declared.

Capital Structure & Liquidity

• Current borrowings Rs 3,161 cr; non-current borrowings Rs 888 cr.
• Total borrowings Rs 4,049 cr; cash Rs 27 cr.
• Capex plan Rs 6,800 cr through FY29.
• OHT capacity expansion to 425,000 MTPA; 8% global market share target.
• In-house Carbon Black supports energy/cost advantages.

Strategic Priorities & Outlook

• 2x revenue by FY30; 8% global OHT share by FY30.
• OHT to contribute ~70% of revenue by FY30.
• Carbon Black capacity expansion to 360k MTPA; 10% revenue by FY30.
• On-Highway India: CV radial pilot is Q4FY26; PCR pilot Q3FY27.
• Phase 2 carbon black enables energy circularity and material security.

Risks & Mitigation

• Risks: macroeconomic volatility and capex execution.
• Mitigation: phased investments and leveraging existing markets.

Governance & Leadership

• Board includes Chairman Arvind Poddar; multiple independent directors.
• 25% of board seats held by women.
• CRISIL AA/Positive; CRISIL ESG rating 57; S&P ESG score 58.

Financial results and dividend

• Approved unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Limited review reports on results issued by M/s Jayantilal Thakkar & Co.
• Declared interim dividend of Rs 4 per equity share (200%).
• Record date 4 August 2026; payment within 30 days.
• Interim dividend cash outflow Rs 77.32 crores.

Governance disclosures

• Annexures A and B containing results and limited review reports enclosed.
• Company has one reportable segment: Tires.
• Capital expenditures expected to complete per approved budget.
• AGM appointed Deloitte Haskins & Sells LLP as joint statutory auditors.