Balkrishna Industries Limited (BKT) is an Indian multinational tire manufacturing company that started its off-highway tire business in 1987. Based in Mumbai, India, the company has established itself as a prominent player in the specialty tire segment over more than three decades of operations.
BKT has successfully focused on specialist segments including agricultural, construction, industrial, earthmoving, port, mining, ATV, and gardening applications. The company has evolved from a domestic manufacturer to a global leader in the off-highway tire industry, serving customers across multiple continents with its comprehensive product portfolio.
Balkrishna Industries manufactures off-highway tires used in specialist segmentations like mining, earthmoving, agriculture, and gardening in five factories located in Aurangabad, Bhiwadi, Chopanki, Dombivali, and Bhuj. These five state-of-the-art production sites employ more than 7,000 people, demonstrating the company's significant contribution to employment in the manufacturing sector.
The company is one of the world's leading manufacturers of off-highway tires catering to specialty segments like agricultural, mining, construction, industrial, earthmover, port, ATV, and turf care applications in both cross-ply and radial construction, with a product range comprising more than 3,200 SKUs. This extensive product portfolio allows BKT to serve diverse customer requirements across multiple industry verticals.
The company has a 5-6% market share in the global specialty market, positioning it as a significant player in the niche off-highway tire segment. In 2013, it was ranked 41st among the world's tire makers, highlighting its global standing in the industry.
Balkrishna Industries predominantly caters to the replacement market in North America and Europe, with its North American office located in Akron, Ohio, and one warehouse in Wando, South Carolina. About 80 percent of Balkrishna Industries' business in the United States is in the farm market, demonstrating the company's strong presence in agricultural applications.
The company sells its products in 160 countries worldwide through a network of national distributors, showcasing its extensive global reach and distribution capabilities.
Balkrishna Industries is currently an OEM vendor for heavy equipment manufacturers like JCB, John Deere, and CNH Industrial. These partnerships with leading original equipment manufacturers validate the quality and performance of BKT's tire products.
The company has also invested significantly in sports marketing and brand building. BKT Tires has been the official and exclusive tire sponsor for Monster Jam (a competition involving monster trucks) since 2014. Additionally, BKT purchased naming rights for Italian football's second division Serie B for three years starting in July 2018, and signed an agreement with LFP to rename the French football second division as Ligue 2 BKT for four years starting in January 2020.
**Market Capitalization and Key Metrics**
As of recent data, BKT has a market capitalization of ₹50,243 crore. The company's promoter holding stands at 58.3%, indicating strong promoter confidence in the business.
**FY25 Financial Performance**
For FY25, the company reported revenue of ₹10,447 crore and profit of ₹1,655 crore. FY25 net profit stood at ₹1,628 crore, up from ₹1,438 crore in FY24—representing a growth of 13%.
**Q4 FY25 Results**
In Q4 FY25, Balkrishna Industries reported total income of ₹2,852.66 crores, marking a quarter-over-quarter increase of 3.8% from ₹2,747.62 crores in Q3 FY25, and a year-over-year growth of 20.2% from ₹2,374.02 crores in Q4 FY24.
However, the company's net profit fell 24.28% year-over-year to ₹368.55 crore in Q4 FY25, indicating some pressure on profitability despite revenue growth.
**Dividend Declaration**
The company announced a final dividend of ₹4 per share for the financial year 2024-25, demonstrating its commitment to returning value to shareholders.
The company aims for 8% global tire market share by 2030, indicating ambitious growth targets for the coming years. The company has announced plans for ₹3,500 crore in capital expenditure, showing its commitment to expanding manufacturing capabilities and market reach.
The company is exploring expansion into new competitive segments like truck and passenger car radial (TBR/PCR) tires through capacity and infrastructure investments, representing a strategic diversification from its traditional off-highway tire focus.
Working capital days have increased from 98.9 days to 144 days, indicating some operational efficiency challenges that the company is addressing. While the agricultural sub-segment is non-cyclical, the industrial, construction, and mining sub-segment is cyclical and tied to the global economic outlook, making the company's performance somewhat dependent on global economic conditions.
In FY22, nearly 66% of revenue was derived from the agricultural segment and 31% from other OTR segments, with approximately 69% of revenue coming from the replacement segment, highlighting the company's diversified revenue streams and strong aftermarket presence.
Balkrishna Industries continues to maintain its position as a leading manufacturer in the off-highway tire market, with strong global presence, diverse product portfolio, and strategic growth initiatives positioning it well for future expansion in the specialty tire segment.
