Balkrishna Industries Share Price Falls Over 10% Post Weak Q4 Results

Market Performance

Balkrishna Industries' share price sharply declined on May 26, dropping over 10% intraday. The stock plunged to a low of ₹2,385 on the BSE, marking a significant reaction to its Q4 FY25 earnings and broader strategic developments.

• The share price is now 29% lower than its 52-week high of ₹3,377.95, touched in June 2024.
• It remains just above its 52-week low of ₹2,157.20 recorded in April 2025.
• Over the past year, the stock has declined nearly 13%.
• In May alone, it has lost more than 10%, wiping out the 5% gain from April.

Main News

The market sentiment turned negative following the company's muted performance and foray into new, competitive segments like truck and passenger car radial (TBR/PCR) tires.

Company Details

Balkrishna Industries is a key off-highway tire (OHT) segment player. It now aims to expand into adjacent segments through capacity and infrastructure investments.

• The company plans to raise tire manufacturing capacity to 4.25 lakh tonnes annually.
• A new off-road tire unit at Bhuj with a capacity of 35,000 tonnes per year is expected by FY26-end.
• A total capex of ₹3,500 Crore has been approved for the next three years.
• Planned units include carbon black, power generation, CV tires, rubber tracks, and PCR tires.

Financial Performance

Revenue

• Q4 FY25 revenue grew by 5% YoY to ₹2,838 Crore.
• Full-year FY25 revenue stood at ₹10,615 Crore, up 13% YoY.

EBITDA

• Q4 EBITDA rose by 1% YoY to ₹703 Crore.
• FY25 EBITDA peaked at ₹2,682 Crore, a 16% YoY increase.

EBITDA Margins

• Q4 EBITDA margin dropped 115 basis points to 24.78%.
• Annual EBITDA margin slightly improved by 50 basis points to 25.26%.

Net Profits

• Q4 standalone net profit dropped 25% YoY to ₹362 Crore.
• FY25 net profit stood at ₹1,628 Crore, up from ₹1,438 Crore in FY24—a rise of 13%.

Dividend

• The company has announced a final dividend amounting to ₹4 per share for the financial year 2024–25.

Summary of the Article

The Balkrishna Industries share price saw a steep decline following weaker-than-expected Q4 earnings and strategic concerns raised by global observers. Although annual figures showed growth, the quarterly profit drop, margin pressure, and entry into competitive markets have weighed heavily on investor sentiment.

With a substantial capex of ₹3,500 Crore and ambitious expansion plans, Balkrishna Industries is betting on diversification. However, market reaction reflects skepticism around execution risks and margin sustainability in these new verticals.