Balkrishna Industries Q2 FY27 net profit rises 7.1% to ₹292.62 crore as revenue grows 45.1%, despite higher raw material and finance expenses.
Key points
- BKT Q2 FY27 Revenue and Profit Performance
- Rising Raw Material and Finance Costs
- BKT's Commercial Vehicle Tyre Business
- Outlook for BKT
- Frequently Asked Questions
Balkrishna Industries Limited (BKT) reported a 7.1% year-on-year increase in consolidated net profit to ₹292.62 crore for the second quarter of FY27. The company had recorded a net profit of ₹273.19 crore in the corresponding quarter last year. Its revenue from operations also showed strong growth during the quarter.
The tyre manufacturer reported consolidated revenue of ₹3,471.74 crore, up 45.1% from ₹2,393.45 crore in Q2 FY26. However, rising operating expenses and finance costs affected its profit growth. BKT supplies tyres for different vehicle and industrial applications, including the commercial transportation sector.
BKT Q2 FY27 Revenue and Profit Performance
Table of Contents
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1. BKT Q2 FY27 Revenue and Profit Performance |
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2. Rising Raw Material and Finance Costs |
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3. BKT's Commercial Vehicle Tyre Business |
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4. Outlook for BKT |
BKT's consolidated financial performance showed a significant increase in revenue compared with the previous year. Revenue reached ₹3,471.74 crore against ₹2,393.45 crore in Q2 FY26. On a sequential basis, revenue remained almost flat compared with ₹3,455.27 crore in Q1 FY27.
Net profit increased from ₹273.19 crore to ₹292.62 crore on a year-on-year basis. However, compared with ₹450.77 crore in the previous quarter, net profit declined 35.1%. This sequential decline reflects the impact of higher expenses during the quarter.
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Rising Raw Material and Finance Costs
The company's total consolidated expenses increased 48.3% year-on-year to ₹3,125.90 crore from ₹2,107.35 crore. Raw material consumption accounted for ₹1,968.45 crore, while other expenses stood at ₹704.89 crore.
Finance costs also increased significantly, doubling to ₹67.48 crore compared with ₹32.54 crore in Q2 FY26. These higher costs reduced the benefit of strong revenue growth.
BKT's Commercial Vehicle Tyre Business
BKT has traditionally been known for its off-highway tyres used in agriculture, mining, construction and industrial applications. The company is also expanding its presence in India's on-highway tyre market.
Its commercial vehicle tyre portfolio targets different vehicle categories, including heavy-duty trucks, passenger and staff buses, mini trucks and pickups. These segments require tyres designed for different load conditions, road surfaces and operating requirements.
BKT's expansion into the commercial vehicle tyre market gives it an opportunity to serve more fleet operators and transport businesses in India.
Outlook for BKT
The latest results show that BKT achieved strong revenue growth in Q2 FY27, but rising input and finance costs remain important factors to watch. The company's ability to manage expenses while expanding its tyre business will be important for its future profitability.
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Frequently Asked Questions
1. What was Balkrishna Industries' net profit in Q2 FY27?
Ans. The company's consolidated net profit was ₹292.62 crore, up 7.1% year-on-year.
2. How much revenue did BKT report in Q2 FY27?
Ans. BKT reported consolidated revenue from operations of ₹3,471.74 crore, registering 45.1% growth.
3. Why did BKT's profit decline compared with the previous quarter?
Ans. Higher raw material costs, other operating expenses and finance costs contributed to a 35.1% sequential decline in net profit.
4. Which vehicle segments does BKT target with its commercial vehicle tyres?
Ans. Its on-highway commercial vehicle tyre business targets trucks, buses, mini trucks and pickups.