Balkrishna Industries Limited (BALKRISIND) AI Stock Analysis

• Market Cap: ₹436.51B
• Dividend Yield: 0.68%
• Average Volume (3M): 12.58K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.08
• Revenue Growth: 3.72%
• EPS Growth: -15.32%
• Country: IN
• Employees: 3,590
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 19.40
• Shares Outstanding: 193,317,180
• 10 Day Avg. Volume: 19,853
• 30 Day Avg. Volume: 12,577
• PEG Ratio: 2.36
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 4.67
• P/FCF Ratio: 173.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,500.00
• Price Target Upside: 10.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 72.25
• Revenue Forecast (FY): ₹107.40B

• Rating: 73 Outperform
• Price Target: ₹2,567.00 ▲(13.68% Upside)
• Action: Upgraded Date: 02/04/26
• Date: Action: Upgraded 02/04/26

The score is driven primarily by strong financial performance (solid growth and profitability with manageable leverage) and supportive technical uptrend signals. This is offset by a relatively expensive valuation (high P/E and low dividend yield).

Positive Factors

Profitability & Margins

Consistently strong gross, net, EBIT and EBITDA margins indicate durable operating efficiency and pricing power in the specialty OHT niche. Healthy margins support reinvestment, resilience to raw-material swings and sustainable internal cash generation over the medium term.

Balance Sheet Strength

A well-capitalized balance sheet and reasonable leverage provide financial flexibility to fund capex, absorb cyclical downturns and pursue export expansion. Manageable debt levels reduce refinancing risk and support capital allocation decisions over the next several quarters.

Diversified End Markets & Export Reach

Exposure across agriculture, construction, mining and industrial segments plus broad international sales diversifies demand drivers and lowers dependence on any single cycle or geography. OEM and replacement channels together create recurring, multi-source revenue streams.

Negative Factors

Free Cash Flow Volatility

Capex-driven swings in free cash flow reduce predictability of internal funding and can constrain dividends or share buybacks. Persistent volatility would force trade-offs between growth investments and balance sheet repair, limiting strategic optionality over coming quarters.

Earnings Volatility / EPS Decline

A sharp negative EPS growth figure reflects sensitivity of earnings to cyclical demand, input costs or mix shifts. If underlying profitability drivers are uneven, restoring consistent earnings growth will be required to underpin cash generation and fund capital spending without increasing leverage.

Rising Debt Trend to Monitor

While leverage is reasonable today, the uptick in total debt in 2025 signals potential pressure from financing capex or working capital. If cash flow lags, higher debt could raise interest costs and reduce flexibility for growth or shareholder returns over the medium term.

Balkrishna Industries Limited Business Overview & Revenue Model

Company Description

Balkrishna Industries Limited manufactures and sells tires worldwide. It offers rubber tires, tubes, and carbon black products. The company provides off-highway tires for use in various applications, such as agricultural, industrial and construction, earthmoving and port, mining, forestry, lawn and garden, and all-terrain vehicles. It sells its products through a network of distributors. The company was incorporated in 1961 and is headquartered in Mumbai, India.

How the Company Makes Money

Balkrishna Industries generates revenue primarily through the sale of its off-highway tyres, which are designed for various applications including agriculture, construction, mining, and material handling. The company operates a multi-channel distribution model, selling its products through a network of dealers, distributors, and direct sales to large clients. Key revenue streams include domestic and export sales, with a notable portion of income derived from international markets. The company also benefits from strategic partnerships with OEMs (original equipment manufacturers) and has a strong brand reputation that enables premium pricing. Additionally, BALKRISIND invests in research and development to enhance product offerings, which helps in maintaining a competitive edge and driving sales growth.

Balkrishna Industries Limited Financial Statement Overview

Summary

Strong income statement quality (revenue growth and healthy profitability) and a solid balance sheet with manageable leverage support the score. Cash flow is improving but has shown volatility due to capex-driven free cash flow swings, which tempers the overall financial strength.

Income Statement

Balkrishna Industries Limited has shown a strong revenue growth trajectory with consistent increases over the years. The gross profit and net profit margins are robust, indicating effective cost management and operational efficiency. EBIT and EBITDA margins are healthy, underscoring profitability. However, there was a notable dip in EBIT in 2024, which has since recovered, showing resilience.

Balance Sheet

The balance sheet reflects a stable financial position with a strong equity base. The debt-to-equity ratio is reasonable, suggesting a balanced approach to leverage. Return on equity is solid, but there is room for improvement. The equity ratio indicates a well-capitalized company, although there was a slight increase in total debt in 2025, which warrants monitoring.

Cash Flow

Cash flow analysis reveals positive free cash flow growth in 2025 after a downturn in previous years. The operating cash flow to net income ratio is strong, showing efficient cash generation. However, fluctuations in free cash flow highlight potential volatility, primarily due to capital expenditures. Continued focus on cash flow stability is recommended.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	104.92B	104.47B	93.04B	96.55B	82.13B	56.76B
Gross Profit	53.91B	53.86B	44.89B	28.83B	39.39B	30.20B
EBITDA	26.77B	24.58B	26.93B	20.49B	24.45B	19.81B
Net Income	14.53B	16.55B	14.71B	10.57B	14.35B	11.78B
Balance Sheet
Total Assets	0.00	156.35B	136.85B	123.48B	109.79B	81.66B
Cash, Cash Equivalents and Short-Term Investments	17.83B	17.83B	14.24B	8.44B	7.30B	4.47B
Total Debt	0.00	32.67B	30.99B	33.47B	25.29B	10.01B
Total Liabilities	-103.88B	52.47B	48.31B	47.91B	40.46B	21.67B
Stockholders Equity	103.88B	103.88B	88.54B	75.57B	69.33B	60.00B
Cash Flow
Free Cash Flow	0.00	2.81B	9.45B	-3.15B	-6.87B	4.13B
Operating Cash Flow	0.00	17.64B	20.82B	14.48B	9.08B	13.39B
Investing Cash Flow	0.00	-14.79B	-14.76B	-17.83B	-18.97B	-11.73B
Financing Cash Flow	0.00	-2.79B	-6.02B	3.59B	9.80B	-1.58B

Balkrishna Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2258.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BALKRISIND, the sentiment is Negative. The current price of 2258 is below the 20-day moving average (MA) of 2551.24, below the 50-day MA of 2443.56, and below the 200-day MA of 2429.44, indicating a bearish trend. The MACD of -31.53 indicates Positive momentum. The RSI at 28.00 is Positive, neither overbought nor oversold. The STOCH value of 30.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BALKRISIND.

Balkrishna Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BALKRISIND	73 Outperform	₹436.51B	29.33	―	0.68%	3.72%	-15.32%
CEATLTD	69 Neutral	₹139.92B	24.70	―	0.77%	12.61%	-12.56%
MRF	67 Neutral	₹572.42B	23.43	―	0.15%	9.56%	-4.82%
TVSSRICHAK	66 Neutral	₹28.69B	72.23	―	0.40%	8.03%	-57.44%
APOLLOTYRE	64 Neutral	₹279.95B	16.87	―	0.98%	4.36%	-45.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKTYRE	56 Neutral	₹137.54B	17.24	―	0.59%	4.55%	-30.30%

Balkrishna Industries Limited Corporate Events

Balkrishna Industries to Raise ₹750 Crore via Non-Convertible Debentures

Balkrishna Industries Limited has approved a fund-raising plan via the issue and allotment of up to 75,000 rated, listed, unsecured, redeemable non-convertible debentures with a face value of ₹1,00,000 each, aggregating to ₹750 crore, to be placed on a private placement basis. The issuance, which will remain within the company’s existing borrowing limits and be listed on a designated stock exchange to be named at allotment, strengthens its financial flexibility and underscores its continued reliance on debt markets to support operational and strategic needs, though key terms such as tenure and coupon will be finalized at the time of allotment.

Balkrishna Industries Clears Q3 FY26 Results, Announces Third Interim Dividend

Balkrishna Industries Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, reflecting continued operational momentum across its tyre business. Alongside the results, the board declared a third interim dividend of Rs 4 per equity share (200% on a face value of Rs 2) for the 2025-26 financial year, to be paid within 30 days to shareholders on record as of 2 February 2026. The combination of sustained profitability and another interim payout underlines the company’s focus on shareholder returns and signals confidence in its financial performance for the current fiscal year.