News ArticleBalkrishna Industries Posts 49% Revenue Growth in Q2 FY27 and Forms Strategic Partnership with Pirelli for Passenger Car Tires
Tire sales volume rises 30% YoY to 91,397 MT; Pirelli to begin production at Balkrishna’s Bhuj plant from 2027 with planned JV by 2030
Balkrishna Industries Ltd. posted Q2 FY27 standalone revenue of Rs. 3,450 crore, up 49% year-on-year, with EBITDA of Rs. 629 crore growing 26%. The company achieved a 30% increase in tire sales volume to 91,397 MT. Net profit rose 10% to Rs. 291 crore. Balkrishna also announced a strategic agreement with Pirelli to manufacture Pirelli-branded passenger car tires in India starting 2027, including plans for a joint venture by 2030.
Balkrishna Industries Ltd.
Investor Presentation
Balkrishna Industries Limited reported a 49% year-on-year revenue increase to Rs. 3,450 crore for the quarter ended Q2 FY27, driven by a 30% volume rise in tire sales. The company also announced a strategic agreement with Pirelli to manufacture passenger car tires (PCR) in India starting 2027, aiming to capture growth in the premium segment.
Standalone results for Q2 FY27 showed tire sales volume rising to 91,397 metric tonnes, a 30% increase over the previous year. Revenue from operations rose 49% to Rs. 3,450 crore. EBITDA increased 26% to Rs. 629 crore, with EBITDA margin at 18.2%, down 329 basis points year-on-year. Net profit was Rs. 291 crore, a 10% increase.
For the first half of FY27, tire sales volume was 185,167 MT, up 23% year-on-year, with revenue of Rs. 6,859 crore, a 35% rise. EBITDA reached Rs. 1,332 crore, rising 15%, while net profit increased 31% to Rs. 723 crore. The company declared an interim dividend of Rs. 8 per equity share for H1 FY27.
Balkrishna Industries announced a strategic agreement with Italian tire manufacturer Pirelli to produce Pirelli-branded passenger car radial (PCR) tires at Balkrishna’s Bhuj plant starting in 2027. Volume targets aim for 800,000 Pirelli-branded tires by 2030, with a minimum annual offtake and corresponding capacity commitments.
A 50:50 joint venture between Balkrishna and Pirelli is proposed to establish a new plant in India by December 2030, subject to agreed conditions. This JV aims to serve India’s growing passenger car tire market, projected to expand significantly by 2030.
Balkrishna continues to pursue growth with plans to more than double revenue by FY30 with a compound annual growth rate of approximately 17%, supported by capacity expansions and diversification, including in carbon black production. The company targets an 8% global market share in off-highway tires (OHT).
Highlights
- Q2 FY27 tire sales volume: 91,397 MT, up 30% year-on-year
- Q2 FY27 revenue: Rs. 3,450 crore, up 49% year-on-year
- Q2 FY27 EBITDA: Rs. 629 crore, up 26% year-on-year; margin 18.2%
- Q2 FY27 net profit: Rs. 291 crore, up 10% year-on-year
- H1 FY27 revenue: Rs. 6,859 crore, up 35% year-on-year
- Strategic partnership with Pirelli to manufacture PCR tires at Bhuj plant from 2027 with target volume of 800,000 tires by 2030 and minimum annual offtake commitments | Proposed 50:50 JV by end 2030 to establish new PCR tire plant in Ind
Key Data Snapshot
What happened
- Balkrishna Industries reported a 49% year-on-year increase in standalone revenue to Rs. 3,450 crore for Q2 FY27.
- Tire sales volume rose 30% year-on-year to 91,397 metric tonnes during the quarter.
- EBITDA grew 26% year-on-year to Rs. 629 crore, with an 18.2% margin, down 329 bps compared to last year.
- Net profit for the quarter was Rs. 291 crore, a 10% increase year-on-year.
- For H1 FY27, revenue increased 35% year-on-year to Rs. 6,859 crore, and net profit grew 31% to Rs. 723 crore.
- The company declared a Rs. 4 interim dividend for Q2 FY27 and Rs. 8 total dividend for H1 FY27.
Strategic context
- Balkrishna Industries and Pirelli entered a strategic agreement to produce Pirelli-branded passenger car radial (PCR) tires at Balkrishna’s Bhuj plant starting in 2027.
- The agreement includes a minimum annual offtake commitment and corresponding capacity allocation from Balkrishna, aiming for 800,000 tires by 2030.
- A 50:50 joint venture is proposed to establish a new PCR tire plant in India by December 31, 2030, subject to agreed conditions.
- India’s passenger car registrations are projected to grow 5-7% annually between 2025 and 2030, with premium car tire market expected to nearly quintuple in size.
Financial performance
- Raw materials cost for Q2 FY27 stood at Rs. 2,055 crore, significantly higher compared to previous periods due to volume growth.
- EBITDA margin declined year-on-year, reflecting cost pressures despite higher sales.
- Interest and finance charges almost doubled year-on-year to Rs. 70 crore in Q2 FY27, driven by higher borrowings.
- The company’s balance sheet as of September 2026 shows total assets of Rs. 20,579 crore, with borrowings amounting to Rs. 5,986 crore.
- Capital expenditure plans include Rs. 6,800 crore overall investment until FY29 to support growth and capacity expansion.
Highlights
- Q2 FY27 tire sales volume: 91,397 MT, up 30% year-on-year
- Q2 FY27 revenue: Rs. 3,450 crore, up 49% year-on-year
- Q2 FY27 EBITDA: Rs. 629 crore, up 26% year-on-year; margin 18.2%
- Q2 FY27 net profit: Rs. 291 crore, up 10% year-on-year
- H1 FY27 revenue: Rs. 6,859 crore, up 35% year-on-year
- Strategic partnership with Pirelli to manufacture PCR tires at Bhuj plant from 2027 with target volume of 800,000 tires by 2030 and minimum annual offtake commitments | Proposed 50:50 JV by end 2030 to establish new PCR tire plant in Ind
Disclosures
- Not specified in source.
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