Balkrishna Inds drops after weak Q4 outcome

Profit before tax fell 24.97% year-on-year to Rs 475.39 crore in Q4 March 2025. EBITDA for Q4 stood at Rs 703 crore, up 1% YoY. The EBITDA margin came in at 24.8%, lower than 25.9% in Q4 FY24.

For the full year, the company's standalone net profit rose 13% to Rs 1,628 crore while net sales rose 11.98% to Rs 10,412.88 crore in the year ended March 2025 over the year ended March 2024. PBT rose 14% to Rs 2,156 crore in FY25. EBITDA rose 16% to Rs 2,682 crore in FY25 over FY24. EBITDA margin stood at 25.3% in FY25, higher than 24.8% in FY24.

The company's standalone net cash from operating activities stood at Rs 1,753.22 crore in FY25, lower than Rs 2,052.45 crore in FY24.

The company announced plans for a phased entry into the premium Passenger Car Radial (PCR) and Commercial Vehicle Radial (CVR) tyre segments, with an initial focus on the domestic replacement market. The pilot launch for CVR tyres is scheduled for Q4 FY26, followed by a gradual scale-up. The PCR tyre pilot will commence in Q3 FY27, with a similar gradual ramp-up.

Following the announcement, a foreign brokerage downgraded Balkrishna Industries' rating from buy to neutral and reduced its price target to Rs 2,644 from Rs 3,242, citing higher risks due to the company's diversification into more competitive segments.

Balkrishna Industries is engaged in the business of manufacturing and selling of off-highway tyres (OHT) in the specialist segments such as agricultural, industrial & construction, earthmovers & port, mining, forestry, lawn & garden and all terrain vehicles (ATV).