Balkrishna Industries reported a strong sequential improvement in Q3 FY26, with volumes up 15% QoQ and 6% YoY, reaching 80,620 metric tons. Standalone revenue grew 4% YoY to INR 2,682 crores, while EBITDA margin stood at 22.5%. The company commissioned a new carbon black line, increasing total capacity to 265,000 metric tons, and declared a third interim dividend of INR 4 per share. Despite ongoing macroeconomic challenges and US tariffs, the company is focused on regaining sales momentum and progressing on its capex plans.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Q3 Volumes | 80620 metric tons | +6.0% YoY |
| Q3 Standalone Revenue | ₹2.7K Cr | +4.0% YoY |
| Q3 Standalone EBITDA | ₹605 Cr | — |
| Q3 Standalone EBITDA Margin | 22.5% | — |
| Q3 PAT | ₹375 Cr | — |
| 9M Volumes | 231536 metric tons | -1.0% YoY |
| Category | Headline | |
|---|---|---|
Capex | ₹2,500 crores | |
Debt | Gross ₹3,649 crores · Net ₹637 crores | |
Dividend | ₹4/share (interim) | |
Liquidity | Cash ₹3,012 crores |
| Category | Target | Priority |
|---|---|---|
| Capex | FY26 Capex Spend→INR 2,500-2,600 crores | Medium |
| Forex Rate | Euro-INR Rate Outlook→Marginally improve | Low |
| Cost | Freight Cost as % of Revenue→~5%, stable | Medium |
| Product Launch | CV Foray Launch→Pilot will start this quarter | High |
| # | Metric | |
|---|---|---|
| 01 | Full FY26 Capex Spend | |
| 02 | Euro-INR Rate Trend | |
| 03 | CV Foray Launch and Initial Impact | |
| 04 | Carbon Black Plant Utilization and Revenue Contribution | |
| 05 | US Market Sales Momentum and Tariff Situation |
| Severity | Risk |
|---|---|
medium | Geopolitical and macroeconomic environment Continues to remain challenged, creating volatility and making future outlook difficult to predict. Management |
medium | US Tariffs Situation remains unchanged, impacting sales momentum and requiring sharing of tariff impact with channel partners. Management |
low | Commodity Price Volatility Oil and natural rubber prices are going up, but it is too early to determine the full impact. Management |
Balkrishna Industries delivered a strong sequential performance in Q3 FY26, with sales volumes increasing by approximately 15% QoQ and 6% YoY to 80,620 metric tons. Standalone revenue for the quarter stood at INR 2,682 crores, marking a 4% YoY growth. The standalone EBITDA was INR 605 crores, achieving a margin of 22.5%. Profit after tax for the quarter was INR 375 crores.
For the first nine months of FY26, volumes reached 231,536 metric tons, a minor de-growth of 1% YoY. Standalone revenue remained flat YoY at INR 7,762 crores. The 9M standalone EBITDA was INR 1,760 crores, registering an 11% de-growth YoY, with a margin of 22.7%. The company reported realized forex losses of INR 47 crores in Q3 and INR 117 crores for 9M, impacting revenue figures.
India continues to outperform all markets, with positive momentum sustained from Q2 due to GST reduction and broad-based demand across channels and product segments. In the US, despite ongoing tariffs, the company is regaining sales momentum by leveraging product quality, brand positioning, and sharing tariff impact with channel partners. Europe saw a rebound due to better season and destocking leveling out, with EUDR norms deferred by one year to January 2027.
The company's capex spend for the first nine months of FY26 was approximately INR 2,200 crores, with an additional INR 300-400 crores expected in the current financial year, bringing the total FY26 capex to INR 2,500-2,600 crores. A new carbon black line was commissioned, increasing total capacity to 265,000 metric tons per annum. As of December 31, 2025, gross debt stood at INR 3,649 crores, with cash and cash equivalents of INR 3,012 crores, resulting in a net debt of INR 637 crores.
Balkrishna Industries is progressing with its CV foray, with the pilot expected to start in Q4 FY26, and announcements to follow. The company declared a third interim dividend of INR 4 per equity share, bringing the total dividend for the nine months to INR 12 per share. The company also highlighted its ESG efforts, achieving an S&P Global Corporate Sustainability Assessment score of 58, and its sports engagement through partnerships with all five women's IPL teams.
The Euro-INR rate for Q3 was approximately INR 97, with management expecting a marginal improvement going forward⏳. Freight cost as a percentage of revenue was around 5% in Q3, down from over 6% in Q2, and is expected to remain stable. While commodity prices for oil and natural rubber are rising, it is too early to determine the full impact on margins.