Balkrishna Industries Ltd (NSE: BALKRISIND) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Unidentified Speaker
Rajiv Poddar — Joint Managing Director
Analysts:
Unidentified Participant
Mumukhsh Mandalesha — Analyst
Siddhartha Vehra — Analyst
Abhishek Jain — Analyst
Yash Agarwal — Analyst
Aditya — Analyst
Chirag — Analyst
Pramod Amte — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Balkrishna Industries Limited Q3 and 9 months FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Rajiv Podar, joint Managing Director. Thank you. And over to you sir.
Rajiv Poddar — Joint Managing Director
Thank you, Steve. Good morning everyone and thank you for joining us today. I would firstly like to wish all of you a very happy New Year. Along with me I have Mr. Bajaj, Senior President Director Commercial and our CFO Mr. Satish Sharma, Senior President and Director, Strategy and business development. Mr. Ravi Joshi, our deputy CFO, Mr. Sushil Mishra, head of accounts and SGA, our IR advisors. Let me begin with performance updates. The geopolitical and macroeconomic environment continues to remain challenged and the situation with US tariffs remain unchanged. Despite these headwinds, we delivered a strong sequential improvement during the quarter.
Our overall sales volume increased by around 15% quarter on quarter in the US market. Despite the ongoing tariff situation, our strong product quality, brand positioning and by sharing the tariff impact with our channel partners, this has enabled us to regain some of the sales momentum. India continues to outperform all markets. The positive Momentum witnessed in Q2 post the GST reduction has sustained into Q3 as well. This has been supported by broad based demand across channels and product segments in India. For Europe it is important to note that the EUDR norms which were to get implemented for the 1st of January 26th the same has now been deferred by one year and is now likely to be implemented from the 1st of January 27th.
I would like to take this opportunity to thank and congratulate the Government of India for their remarkable efforts on signing the landmark FTA with eu. We believe this will allow for further seamless trade between the two geographies. Let me now share some other key.
Rajiv Poddar — Joint Managing Director
Highlights.
Rajiv Poddar — Joint Managing Director
Aligned with our core value of giving back to the society. We have dedicated a state of the art sports injury and rehab center at KEM Hospital in Mumbai. This 15,000 square feet facility is amongst the largest of its kind in a government Hospital in Western India. Further, BKT has featured on the Wall of Giving at Tata Memorial Hospital in Mumbai. This is in recognition of its long standing commitment to to supporting access to high quality bias. This has been evidence based on this is an evidence based and affordable cancer care center. In addition, as a testament to our comprehensiveness efforts on the ESG front, we have established an SNP Global Corporate Sustainability Assessment score of 58.
This place us amongst the leading tyre manufacturers in terms of sustainability performance in the sports engagement. I’m happy to share that BK Retires is the official partner with all the five women’s IPL teams franchises in a landmark multi team deal for 26 season. This partnership will expand our cricket footprint via our association with every Women’s Premier League team of India, thereby further strengthening our brand visibility and reinforcing our commitment to sports and also to women’s sport. Let me update you on the CAPEX front. During the quarter we have commissioned a new line of carbon black taking the total capacity to 265,000 metric ton per annum.
All remaining CAPEX is progressing as per schedule. With this I now move on to operational highlights. For the quarter our volume stood at 80,620 metric ton a growth of 6% year on year. For nine months volumes stood at 231,536 metric tonnes, a minor degrowth of 1% year on year. Our standalone revenue for the quarter stood at rupees 2,682 crores registering a growth of 4% year on year. This includes re realized loss of forex pertaining to the sales of 47 crores for nine months. The standalone revenue stood at 7,762 crores registering flat on year on year basis.
This includes a realized loss on foreign exchange pertaining to sales of 117 crores. The standalone EBITDA for the quarter was at 605 crores a margin of 22.5% for nine months the standalone EBITDA was at 1,760 crores registering a degrowth of 11% year on year. However the margins for H1 stood at 22.7%. Profit after tax for the quarter was recorded at 375 crores while for nine months we have recorded a PAT of 927 crores. Our CAPE expense for the nine months of this financial year was approximately 2,200 crores as on 31st December 25th. The gross debt and cash and cash equivalents were were Rupees 3,649 crores and 3,012 crores respectively.
Accordingly, we have a net debt of about 637 crores. The board of directors has declared a third interim dividend of rupees four per equity share in addition to the eight already paid in the previous two quarters. With this I now conclude my opening remarks and leave the floor open to Q and A.
Questions and Answers:
operator
Thank you very much sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press Star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Mumukhsh Mandalesha with Anand Rati. Please go ahead.
Mumukhsh Mandalesha
Yeah, thank you sir for the opportunity. So firstly on the you’ve seen a Europe market turning positive this quarter. Good growth this quarter and I think some of the market like Germany seems to have done well. I just want to understand you mentioned about macro challenges but still we’ve seen a very good growth in Europe. What could be factors that led to the rebound? Sir.
Rajiv Poddar
So I think overall they’re anticipating the season to begin from this year. So that could have been the course. And as I mentioned in my earlier comments during the last quarter that a lot of the restocking had leveled out. So it could be due to that.
Mumukhsh Mandalesha
So going ahead sir, I mean considering macro challenges, should Europe be a flattish kind of demand? Sir.
Rajiv Poddar
It’s too early to make a call on the long term.
Mumukhsh Mandalesha
Got it sir. On America volume sir, how much would be now say US sir. And has the volume started there and any impact of a tariff on the margins.
Rajiv Poddar
Overall Americas is being there in the investor presentation the exact US sales is down as compared to previous year but the exact numbers are not ending.
Mumukhsh Mandalesha
And any impact of tariffs in our margin numbers?
Rajiv Poddar
Yeah, obviously because we have shared with distributors but the large portion is being borne by them.
Mumukhsh Mandalesha
Got it sir. So on the capex side this year already we have done 2200 crore which was the guidance last year for the year. Can you update what is the capex for the full year now and also any expectations for next year.
Rajiv Poddar
So maybe about 3, 400 crores more in the current financial year and the balance would be in the next year.
Mumukhsh Mandalesha
Got it sir. And sir, on the commodity side sir, how do you see the trend there? And if can share the euro in a rate for the Q3 and how do you see the edges ahead?
Rajiv Poddar
So the euro rate for Q3 was at about approximately 97 rupees.
Mumukhsh Mandalesha
And how do you see rh.
Unidentified Speaker
Should marginally improve from here?
Mumukhsh Mandalesha
Got it. And on the commodity side sir, how do you see the trend ahead?
Unidentified Speaker
So oil is going up, moving and natural rubber is also moving up. But it is too early to say what will be the impact.
Mumukhsh Mandalesha
Got it. Sir, thank you so much for the opportunity.
operator
Thank you. The next question comes from the line of Siddhartha Vehra with Nomura. Please go ahead.
Siddhartha Vehra
Yeah, thanks for the opportunity. Sir, my first question is again on this euro INR rate. I mean we had close to 91 last year and it has gone up to 97 now. So can you talk about how the European realizations have been? Because it’s a significant improvement on the hedge dates but we have not seen much change in our ASPs or margins. So some thoughts there. And current rate is significantly higher. So are there significant hedges which leads to a lower rate for you for next year or why are you sort of indicating only modest increase for next year?
Unidentified Speaker
So firstly the Europe share has gone down. So that has had an impact also as we maintain that we always have a forward booking forward hedge. So that is also playing out. And for next year also the same hedge would be continuing.
Siddhartha Vehra
Okay. But in terms of European realizations, have they remained stable or has there been any change in that also? Hello.
Unidentified Speaker
Yeah, realizations are same. There has not been a significant movement on this.
Unidentified Speaker
Having said Siddharth, having said that the last quarter’s realizations were around 91, 92. This quarter is 97. And still we are giving that it will improve from here. But because if you see in last 10 months the Euro have run up from 90 to 110 even after December for last 20 days, 20, 25 days, it has run up by 5 rupees. So because we are running forward positions, so we are saying that the entire gain will not be captured in the rates.
Siddhartha Vehra
Okay. Okay, got it. And sir, on the India business now, I mean we have seen a pretty strong consistently now for the last few years. This quarter seems to be even stronger. So anything here which is driving this, I mean apart from the industry growth, any customer additions or any market share gain, if you can talk about and how do you think this plays out for the next year?
Unidentified Speaker
As I mentioned in my opening comments, the positive impact by the government’s role in reducing the GST has driven the sentiments and that is what is driving in the entire auto sector. And we are getting the Benefits of that.
Siddhartha Vehra
Understood. And.
Unidentified Speaker
Also the good rains which were there in the season have led to better demand.
Siddhartha Vehra
Okay. And does higher India share have a negative impact on the ASP or margins or. There is no much change. If you can just guide us.
Unidentified Speaker
Yes, it does have a slightly lower asp but if you see after all that also with the enhanced level of India, the EBITDA levels are at par with what they’ve been in the past. So it is nullifying the overall effect.
Siddhartha Vehra
Got it. So the last question is on the CV4A. We had talked about that the pilot will start from this quarter. So any thoughts now? How should we think about the ramp up to the next? What percentage of our volumes can come from the CV segment?
Unidentified Speaker
So as we have mentioned all in my opening comments, the all the projects are going as per schedule. So the CV will also come up in this quarter. You should. We’ll make the announcements as once we are ready. So we’re not anticipating any delay on that as far as the ramp up goes. We have a plan which we are working to. It would be too early to sort of give any light on that at the moment but we are quite confident of keeping our long term vision of 2030 and we are working towards that. It will be too early to comment on a quarterly basis what will be the impact but we are quite confident of our long term vision.
Siddhartha Vehra
Understood sir. Thanks a lot. I’ll come back in the queue.
operator
Thank you. The next question comes from the line of Raghunandan with. Please go ahead.
Unidentified Participant
Thank you sir.
Unidentified Participant
For the opportunity. Firstly with reference to the.
Unidentified Speaker
I’m sorry. Yes sir, There’s a lot of background disturbance and can you please use your handset?
Unidentified Participant
Is it better now?
Unidentified Speaker
Yeah.
Unidentified Speaker
Thank you.
Unidentified Participant
Yeah. Thank you sir. Thank you for the opportunity. Firstly, sir, with reference to the Europe trade deal, can you indicate what is the existing duty and how much reduction in duty can be anticipated because of the deal?
Unidentified Speaker
Current duty is 4% and it is not very clear what will be the duty after this duty unless we see the fine print of the agreement.
Unidentified Participant
Got it sir. And in the rest of the world regions which markets are mainly facing decline.
Unidentified Participant
Sir,
Unidentified Speaker
So I think it is, you know, southern part of America would be there and. And Asia also, little bit.
Unidentified Participant
Got it sir. And how much would be the freight cost as a percentage of revenue in Q3 and how do you see the outlook forward?
Unidentified Speaker
I think it’s around 5% and we look at it to be stable at the moment.
Unidentified Participant
Got it sir. Last quarter I think it was over 6% so there has been an improvement here. It is positively support.
Unidentified Speaker
You know depending on which country has got more of the exports and where it is gone. But this is the range is going to be in this range only. There’s not going to be significant movement upward or downward.
Unidentified Participant
Understood sir. And within our expenses is there any cost which we are also factoring for the efforts towards the CV and PV4A is there any product development or other cost which are part of our financials?
Unidentified Speaker
Nothing significant to note I mean to highlight over here.
Unidentified Participant
Understood sir. And lastly sir, on the capex will FY27 capex also be in a similar range to 26 around that 22,600 odd crore?
Unidentified Speaker
No, we are in as we mentioned we are not seeing an overrun. So out of the total amount that we had committed from the budget about 25, 2600 would be done in this financial year and the balance would be done in that financial year.
Unidentified Participant
Understood sir, Understood. Thank you sir, thank you so much. Wishing all the best.
operator
Thank you. The next question comes from the line of Abhishek Jain with Alpha Accurate Advisors. Please go ahead.
Abhishek Jain
Thanks for opportunity sir.
Abhishek Jain
How.
Abhishek Jain
How much is the current inventory in the US and European market and how would be the outlook for the U.S. and Europe in the fourth quarter?
Unidentified Speaker
So we are seeing that the channel stock is at par at where it should be and going forward it is difficult to comment because of the volatility across the world with the geopolitical scenarios how it plays out. So it will very difficult to make a comment on how we see it. We hope that it plays out well but too early to comment on that.
Abhishek Jain
So sir, I have heard that inventive quite low in the US and you have started to increase the numbers in the US from this quarter. We have seen a strong growth in on a quarter on quarterly basis on us but still it is declined 30% y on y basis. So just wanted to understand what is your strategy for the US market? Are you waiting for that these tariff issues to be resolved and then you can start to ramp up the volume or you will continue to see the gain in the market in the US.
Unidentified Speaker
So as I mentioned in my opening comments because of our strong brand positioning and quality and some or rather big, some major chunk of the tariffs to be shared between us and our channel partners we have been able to gain some of the momentum that we had lost in the Q2 has come back in Q3 and too early to comment on what would be the change or how the tariffs would play out because as of now There is nothing changed in that scenario. So once things change we will have to relook at our strategy. At the moment we are trying to just regain some of the lost momentum that we had in Q.
Abhishek Jain
So how much impact on the margin on the US business because of this you are taking some heat on the and absorbing some sort of the tariff by yourself. So how much impact on the overall margin because of that?
Unidentified Speaker
I’m not able to quantify it on a public call for these are businesses details.
Abhishek Jain
Okay.
Abhishek Jain
And how much difference in the realized and margin export versus domestic market. Now.
Unidentified Speaker
As I mentioned in my comments earlier it is marginally lower. Again I’m not going to quantify that. Thank you.
Unidentified Participant
Okay, so my last question on the carbon blade plant as you have increased your capacity to 25000. So just wanted to understand how much would be used for the captive use and how much for the commercializations and what kind of the revenue and EBITDA margin we can see on this business.
Unidentified Speaker
So this entire quantity is for the outside sale. Because whatever internal consumption is there that we were able to make from the earlier capacity and margins wise it will be the as per industry average.
Unidentified Participant
Okay, thank you.
Unidentified Participant
That’s all for my time.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants please limit your questions to two per participant. The next question comes from the line of Yash Agarwal with Nirmal Bank Securities. Please go ahead.
Yash Agarwal
Sir, just wanted to understand on the US tariff like how much has been passed on to the dealers and how much we are bearing the impact of it.
Unidentified Speaker
Yes, I’m sorry as I mentioned earlier these things I’m not able to quantify on a public call. But we are sharing. The cost is being born between both of us. That’s all. What I can comment.
Yash Agarwal
That’s it from nothing.
operator
The next question comes from the line of Aditya with old bridge mutual funds. Please go ahead.
Aditya
Thank you for the opportunity sir. So my first question would be on the India market. So I just needed some sense on how we should see this market. How we should see this volume split between agriculture and construction. If you can give us some sense there.
Unidentified Speaker
It’s roughly about 60, 40 between industrial construction and. Agree. Very rough approximation. Industrial construction, industrial construction side would be about 60 and 40% agree.
Aditya
Okay.
Aditya
Okay, that’s. And second question is sir, on the US business of course we have done pretty well as compared to expectation in the US business. So can you. Of course we are witnessing lower volumes due to tariffs. This Year. But if you can give us some sense on the end consumer demand for these tires in US and how is the farm level activity as compared to last year or a year back today and where are we there in that cycle?
Unidentified Speaker
So as we are all aware that US is a net importer so that would continue as far as for us. It’s you know, it’s of course a challenge to, with the tariffs that we have been put up with. I mean we, you know, as a country we’ve been put with. So we are trying to navigate through these scenarios. It’s difficult to comment on how the momentum would be going forward because we don’t have for certain what, how long this will continue for, whether it goes up, goes down. But whatever is enforced on the country and being law abiding citizens, we will make try and make the best of that scenario.
Aditya
Okay. Okay. I mean I wanted to get some sense like how’s the farmer level activity in terms of crops? Is the output down or is the end level activity down or significantly down over last year which is impacting the end consumer demand? Is that also a case, a significant case going on there this year?
Unidentified Speaker
No, not that we are aware of. It seems to be as per normal.
Unidentified Participant
Okay, thank you. Thank you so much.
operator
Thank you. The next question comes from the line of Chirag with keynote capitals. Please go ahead.
Chirag
Yeah, thank you for the opportunity. So my first question is related to the carbon black sales. What percentage of our revenue came from carbon black this quarter?
Unidentified Speaker
It is less than 10%.
Chirag
Secondly, could you update how has been the utilization of the advanced carbon black assets and what kind of volumes are coming from there?
Unidentified Speaker
Still not very significant. But yes, we are able to get the sample approvals from many places and in the coming quarters it should improve.
Chirag
Got it. So my second question is related to the related to the Indian market itself that now in Indian market could you just highlight what is the right to win for any new company which is getting into commercial vehicle and passenger vehicle as a segment and what and what is the reason for Balkrishna would be that we would be able to significantly gain the initial 2 to 5 percentage of the passenger and commercial vehicle market. As as in my understanding it is a competitive industry where even low price players are not able to penetrate into market the way the branded larger players have.
So just wanted to understand your point of view on this.
Unidentified Speaker
Yeah, Chirag, we have spoken about it in the past. I don’t know whether you were on that call or not but we hope to deliver a better value proposition to the Market to the root of the product channel, brand, end user value. So all these put together, I think we should be able to deliver a better value proposition than what the market is experiencing currently.
Chirag
Got it, got it. So just last question. If I am able to bifurcate the OHT industry into three parts. Agriculture, mining, construction and industrial. Just wanted to understand is Balkrisna present into the industrial tires as a segment?
Chirag
Yes, got it, got it. That is it from my side. Thank you sir.
operator
The next question comes from the line of Pramod Amte with incorrect capital. Please go ahead.
Pramod Amte
Yeah, hi. Thanks for taking the call. So two questions. One with regard to US market, who is with the duties and all who are the competitors who are gaining at your cost. And you feel once as and when the duties normalized, you should still have a right to regain it back which countries or which manufacturers how to see it.
Unidentified Speaker
So as a as per competitive activity, we generally don’t comment and we’ll refrain from doing so. Regarding BKT’s policy, we believe that we are building the foundations and keeping everything intact to when the scenario changes, we will be ready to regain the momentum that was there. And actually if you see our previous commentary, we have always mentioned that North America is a driver of growth for us. So we are keeping everything ready to come back to that market when it when things improve there.
Pramod Amte
And second question is with regards to the new projects, when we visited last time, similar time to the plant, you had some conveyor type of tires which you are planning as a new project and also specialty carbon. Any update in terms of client acceptance and orders on the same.
Unidentified Speaker
So as. So regarding the carbon black, as Bajaji mentioned that it is a work in progress and as we mentioned, the ramp up would take time because of acceptance. But every day we are getting your acceptance. So in the coming quarters that should work. Regarding the conveyor that you saw were actually what we call tracks. Rubber track. So that is what was there. Rubber tracks is a work in progress again. And as we are, you know, moving ahead, we are trying. I mean our product is under validation at OES and that is expected in the coming quarters.
So that should then also ramp up.
Unidentified Participant
Thanks Anode.
operator
Mr. Pramod. Does that answer your questions?
Pramod Amte
Yeah, thank you.
operator
Okay, thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Unidentified Speaker
We thank everyone for taking the time out and coming to hear us and looking forward to seeing you in the next quarter. Thank you. Have a safe day.
operator
Thank you. On behalf of Balkrishna Industries limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.