Balkrishna Industries Ltd (BKT), a leading off-highway tire manufacturer, has unveiled expansion plans while reporting a decline in its second-quarter profits for the fiscal year 2025-26.

Expansion Strategy

BKT aims to increase its total achievable tire capacity to approximately 4.25 lakh Metric Tonnes Per Annum (MTPA) through ongoing capital expenditure and debottlenecking initiatives. The company's strategy includes:

• Diversification across agriculture, OTR (Off-The-Road), industrial, and mining segments
• Maintaining self-reliance in carbon black production to strengthen sourcing security
• Consolidating global market share
• Sustaining profitability through efficiency gains and cost optimization measures

Q2 FY26 Financial Performance

For the quarter ended September 30, 2025, Balkrishna Industries reported:

The company's performance shows a decline across key financial metrics.

Dividend Declaration

Despite the profit decline, BKT's Board of Directors has declared a second interim dividend of ₹4.00 per equity share (200%) for FY 2025-26.

Segment-wise Performance

BKT's sales volume for H1 FY26 was distributed across various segments:

• Agriculture: 58.20%
• OTR: 38.10%
• Others: 3.70%

Geographically, Europe remained the largest market, accounting for 39.20% of sales, followed by India at 34.90%, Americas at 14.90%, and Rest of the World at 11.00%.

Future Outlook

While facing current headwinds, Balkrishna Industries remains committed to its long-term growth strategy. The company's focus on capacity expansion, diversification, and operational efficiency aims to strengthen its position in the global off-highway tire market.

As Balkrishna Industries navigates through market challenges, the company's strategic initiatives and robust dividend policy signal confidence in its long-term prospects.

Balkrishna Industries , a prominent player in the Indian tire manufacturing sector, has released its financial results for Q2FY26, revealing a decline in revenue and profitability. The company has also announced ambitious growth plans for the future.

Financial Performance Highlights

Balkrishna Industries reported the following key financial metrics for Q2FY26:

H1FY26 Performance

For the first half of FY26:

• Revenue: Rs 5,079 crore (down 2% year-on-year)
• Net profit: Rs 552 crore (down 33% year-on-year)

Future Growth Plans

Balkrishna Industries has announced growth targets:

• Revenue target of Rs 23,000 crore by FY30
  • Represents 2.2x growth
  • 17% CAGR over 5 years
• Capex plan of Rs 3,500 crore over 3 years for:
  • Carbon black expansion
  • Rubber tracks
  • New tire categories

Strategic Initiatives

1. Aim to achieve 8% global market share in off-highway tires
2. Entry into new segments:
   • Premium passenger car radial tires (planned for Q4FY26)
   • Commercial vehicle radial tires (planned for Q3FY27)
3. Expansion of carbon black capacity:
   • Current: 200,000 MTPA
   • Target: 360,000 MTPA by early 2026

Dividend Announcement

Balkrishna Industries has declared an interim dividend of Rs 4 per equity share for Q2FY26.

Market Implications

The decline in revenue and profitability may raise concerns among investors about the company's short-term performance. However, the growth plans and strategic initiatives demonstrate the company's long-term outlook.

Investors and analysts will likely be watching closely to see how Balkrishna Industries executes its growth strategy and whether it can improve its operational efficiency in the coming quarters.