Tyre Stock in Focus After Entering CV Radial Segment; Targets 117% Revenue Growth by 2030

Synopsis: – As Balkrishna Industries posted muted Q4 and full-year FY26 results with PAT falling 25 percent YoY to Rs. 1,222 crore, the company simultaneously laid out the most expansive strategic pivot in its nearly four-decade history: a push into on-highway tyres backed by Rs. 6,800 crore in planned capex through FY29, with a target to more than double revenue to Rs. 23,000 crore by FY30.

India’s largest off-highway tyre exporter came into the spotlight this week as its board approved audited results for Q4 and full-year FY26, a set of numbers that, taken in isolation, look underwhelming. Read against the company’s growth blueprint, they look like the cost of a large bet being placed. Margins have compressed, profits have fallen, yet capital deployment has never been more ambitious. A global OHT leader is quietly reinventing itself. 

With a market capitalization of Rs. 42,142 crore, the shares of Balkrishna Industries Ltd. were trading at Rs. 2,180 per share on May 11, 2026, with a 52-week range of Rs. 2,817.50 to Rs. 2,015. The stock is trading at a P/E of 34x. 

FY26 Financial Performance

Balkrishna Industries (BKT) closed FY26 with revenue flat at Rs. 10,656 crore as rising costs and early-stage investments in the on-highway business weighed on profitability. EBITDA declined 10% YoY to Rs. 2,423 crore, with margins compressing 252 bps to 22.7%. Net profit fell 25% to Rs. 1,222 crore. OHT volumes inched up 1% to 317,356 MT, with Europe recovering in H2 and India sustaining momentum. The Board has recommended payment of a final dividend of Rs. 4 per equity share on the face value of Rs. 2 (200%). 

BKT’s Q4FY26 showed early signs of volume recovery, with OHT sales rising 5% YoY to 85,820 MT and revenue growing 2% to Rs. 2,894 crore. But profitability remained under pressure; EBITDA fell 6% to Rs. 663 crore, margins slipped 187 bps to 22.9%, and net profit dropped 19% to Rs. 295 crore. Raw material headwinds and on-highway ramp-up costs continue to drag. Can BKT’s Rs. 6,800 crore capex plan reverse the margin slide by FY30?

The On-Highway Pivot

BKT launched commercial vehicle radial tyres in India in February 2026, a category the company had never competed in before. The initial focus is firmly on the replacement market, which gives BKT a way to build brand and distribution without needing OEM approvals upfront. Passenger car radials are scheduled for a pilot launch in Q3FY27.

The board approved a fresh Rs. 2,000 crore capex allocation this quarter, taking the total capex program through FY29 to Rs. 6,800 crore. That figure covers OHT capacity expansion, on-highway tyre manufacturing, rubber tracks, carbon black, and AI-enabled automation in the new tyre category. 

The company also expanded its carbon black plant to 265,000 MTPA in Phase 1, with Phase 2 targeting 360,000 MTPA by Q1 FY27, an integrated supply move that trims a significant manufacturing cost while generating co-gen power at Bhuj.

The FY30 Roadmap

Management has set a target of Rs. 23,000 crore in revenue by FY30, implying a roughly 17 percent CAGR from the FY26 base. The projected revenue split: OHT at 70 percent, on-highway at 20 percent, and carbon black third-party sales at 10 percent. In the OHT segment, the medium-term aim is 8 percent global market share, with 10 percent as a longer-horizon goal. The company has set its sights on more than doubling its revenue by FY30, a target that turns every rupee of today’s capex into a claim on tomorrow’s scale. 

Investor Overview

BKT’s muted FY26 numbers mask a deliberate strategic shift. The company is deploying significant capital through FY29 to build an entirely new revenue engine on-highway tyres  while expanding carbon black capacity and consolidating its global OHT leadership. Management expects margins to recover meaningfully post-commercialization. For long-term investors, the question is straightforward: is today’s margin pain tomorrow’s compounding story?

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