Q1 2027 Balkrishna Industries Ltd Earnings Call Transcript
Key Points
- Balkrishna Industries Ltd (BOM:502355) achieved its highest-ever quarterly sales volume in the Off-Highway Tire (OHT) segment, with a 16% year-on-year growth.
- The company reported a 24% year-on-year increase in standalone revenue, reaching INR3,409 crores for Q1 FY27.
- India performed exceptionally well, contributing 40% of total volumes, driven by strong marketing efforts and a superior product range.
- The company commissioned Phase 2 of its Carbon Black plant, increasing total capacity to 360,000 KTA and enhancing operational efficiency.
- Balkrishna Industries Ltd (BOM:502355) launched its On-Highway tire business in India, including TBR and two-wheeler segments, with positive initial market response.
- EBITDA margin was impacted at 20.61% due to rising raw material prices driven by global geopolitical uncertainties and supply chain disruptions.
- The company faces ongoing geopolitical uncertainty, which is affecting the availability and cost of materials, vessels, containers, and freight.
- Freight costs may increase further if current geopolitical disruptions persist, potentially requiring additional price hikes.
- The increased contribution of the Indian market (40% of volumes) has slightly pressured overall margins, as domestic margins are marginally lower than export margins.
- The company expects a 2% margin impact in the coming quarter due to raw material inflation, with only partial offset from price hikes taken in Q1.
Ladies and gentlemen, good day, and welcome to the Balkrishna Industries Limited Q1 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call.
These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I would now like to hand the conference over to Mr. Rajiv Poddar, Managing Director. Thank you, and over to you, sir.
Thank you, Manav. Good morning, everyone, and thank you for joining us today. Today, along with me, I have Mr. Satish Sharma, Senior President and Director of Strategy and Business Development. Our new CFO, Mr. Saroj Khuntia; Mr. Sushil Mishra, our Head of Accounts; Mr. M. Bajaj, Special Adviser to Chairman and Managing Director; along with SGA, our
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