Balkrishna Industries Limited (BALKRISIND) AI Stock Analysis

• Market Cap: ₹441.76B
• Dividend Yield: 0.68%
• Average Volume (3M): 12.58K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.11
• 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: 10.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 71.46
• Revenue Forecast (FY): ₹107.40B

• Rating: 73 Outperform
• Price Target: ₹2,548.00 ▲(13.09% 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

Sustained strong gross and net margins, alongside healthy EBIT/EBITDA, indicate durable cost management and pricing power in the specialty OHT niche. This supports reinvestment capacity and resilience to normal cyclical swings, underpinning long-term cash generation and shareholder returns.

Balance sheet strength

A well-capitalized balance sheet and reasonable leverage provide financial flexibility for capex, market expansion, and downturns. Manageable debt levels reduce refinancing risk and support strategic investments in capacity or technology without jeopardizing solvency over the medium term.

Improving cash generation

Recovery to positive free cash flow and a strong operating-cash-to-net-income ratio signal improving conversion of profits into cash. That enhances capacity to fund growth, service debt, and potentially return capital. Sustained OCF strength reduces reliance on external financing.

Negative Factors

Earnings volatility

A steep year-over-year EPS decline reflects earnings sensitivity to demand, pricing or input-cost swings in cyclical OHT markets. Persistent EPS volatility can hinder predictable reinvestment and weaken investor confidence, complicating long-term planning for capex and payouts.

Free cash flow swings

Capex-driven swings in free cash flow create uncertainty around available internal funding for growth or distributions. If high investment needs persist, FCF variability could constrain flexibility or force incremental borrowing in weaker cycles, increasing financial risk over time.

Historic EBIT dip

A material EBIT decline in 2024 demonstrates vulnerability of operating profits to cyclical pressures or cost shocks. Even with recovery, such episodic margin deterioration shows that competitive or input-cost risks can meaningfully impact profitability if adverse conditions recur.

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: 2253.15
• 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 2253.15 is below the 20-day moving average (MA) of 2510.41, below the 50-day MA of 2440.40, and below the 200-day MA of 2425.32, indicating a bearish trend. The MACD of -51.84 indicates Positive momentum. The RSI at 29.79 is Positive, neither overbought nor oversold. The STOCH value of 43.65 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	₹441.76B	29.33	―	0.68%	3.72%	-15.32%
CEATLTD	69 Neutral	₹137.95B	24.70	―	0.77%	12.61%	-12.56%
MRF	67 Neutral	₹594.59B	23.43	―	0.15%	9.56%	-4.82%
TVSSRICHAK	66 Neutral	₹29.09B	72.23	―	0.40%	8.03%	-57.44%
APOLLOTYRE	64 Neutral	₹281.95B	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	₹127.15B	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.