Balkrishna Industries (BKT), which closed FY26 with consolidated revenue of ₹10,823 crore and weaker profitability, has begun FY27 on a stronger footing and is betting on three growth engines—off-highway tyres, carbon black and its new on-road tyre business—to more than double revenue to ₹23,000 crore by FY30. Q1 standalone revenue rose 25.2 per cent year-on-year and net profit jumped 56.4 per cent, while the company is targeting FY27 tyre volumes of 3,30,000-3,40,000 tonnes.
The newest leg of that push is mainstream automotive tyres: after entering truck and two-wheeler tyres in April, BKT will launch passenger-car tyres in November and is targeting a ₹5,000-crore on-road business by FY30, backed by a ₹6,800-crore investment programme through FY29. FY27 will be the “seeding phase” for the new categories, with the real impact expected from FY28.
“We have a vision of ₹5,000 crore by 2030. So from zero to ₹5,000 crore is a journey that we have,” Satish Sharma, Senior President & Director – Business Development and Strategy, Balkrishna Industries, told businessline.
Taking BKT on-road
BKT is targeting about 5 per cent of India’s non-off-highway tyre market as it builds a domestic consumer business alongside its traditional export-heavy operations.
The shift is significant for a company built around specialised tyres for agriculture, industrial, earthmoving and mining applications. BKT has more than 3,600 products sold across 163 countries, with exports accounting for around 65 per cent of revenue.
Its Bhuj plant produces about 70 per cent of exports, a share the company expects to increase to 80 per cent next year.
Moving into passenger cars and two-wheelers also requires BKT to build consumer recognition. It has revamped its brand architecture and stepped up marketing, including through its T20 cricket association. The company said brand recognition and awareness has risen 11 per cent.
The new on-road portfolio will be powertrain agnostic and EV-ready, allowing the same tyres to cater to ICE, CNG and electric vehicles. A dedicated EV range could follow once the electric-vehicle population becomes large enough, Sharma said.
Core still has room
BKT isn’t relying on the new categories alone. Sharma expects its core off-highway business to grow significantly over the next four-five years despite tariff and geopolitical uncertainties in Europe and the US.
Carbon black, which BKT entered in 2019 largely for captive requirements, has also developed into a significant third-party business.
“The vision of ₹23,000 crore that we have is a doable vision in our view,” Sharma said. “The infrastructure has been put into place. The growth is now going to come.”
Price pressure
The immediate challenge is input costs. BKT has raised prices 9% over the past four months, but Sharma said an 18-20 per cent increase would be needed to completely offset cost pressures.
“At least one more” price revision is on the cards this year, he said.
The squeeze was visible in FY26: EBITDA fell to ₹2,552 crore from ₹2,996 crore, while net profit declined to ₹1,243 crore from ₹1,655 crore, even as revenue grew.
For FY27, BKT faces a two-fold task: reviving its margin momentum in its established businesses while laying the foundation for its on-road foray which the company expects to begin contributing meaningfully from FY28.