Performance Summary - Q2FY27 (Standalone)

Financial Performance:

  • Sales volume: 91,937 MT, up 31% YoY from 70,252 MT in Q2FY26
  • Revenue from Operations: ₹3,491 crore
  • Total Income: ₹3,450 crore, up 49% YoY from ₹2,320 crore
  • EBITDA: ₹629 crore, up 26% YoY from ₹500 crore
  • EBITDA Margin: 18.2% vs 21.5% in Q2FY26
  • Profit Before Tax: ₹388 crore, up 12% YoY from ₹347 crore
  • Profit After Tax: ₹291 crore, up 10% YoY from ₹265 crore
  • PAT Margin: 8.4% vs 11.4% in Q2FY26
  • Declared 2nd Interim Dividend

Expense Breakdown (Q2FY27):

  • Raw Material: ₹2,055 crore
  • Employee Expenses: ₹155 crore
  • Other Expenses: ₹683 crore
  • Depreciation: ₹216 crore
  • Interest & Finance Charges (Net): ₹70 crore
  • Tax: ₹96 crore

Performance Summary - H1FY27 (Standalone)

Financial Performance:

  • Sales volume: 185,167 MT, up 23% YoY from 150,916 MT in H1FY26
  • Revenue from Operations: ₹6,935 crore
  • Total Income: ₹6,859 crore, up 35% YoY from ₹5,079 crore
  • EBITDA: ₹1,332 crore, up 15% YoY from ₹1,155 crore
  • EBITDA Margin: 19.4% vs 22.7% in H1FY26
  • Profit Before Tax: ₹970 crore, up 31% YoY from ₹738 crore
  • Profit After Tax: ₹723 crore, up 31% YoY from ₹552 crore
  • PAT Margin: 10.5% vs 10.9% in H1FY26
  • Total of 1st and 2nd Interim Dividend declared

Balance Sheet Position (as of September 2026)

Assets:

  • Total Assets: ₹20,579 crore (vs ₹17,713 crore in March 2026)
  • Non-current assets: ₹14,174 crore
  • Property, Plant and Equipment: ₹7,695 crore
  • Capital work-in-progress: ₹3,741 crore
  • Investments: ₹1,751 crore
  • Current assets: ₹6,405 crore
  • Inventories: ₹2,423 crore
  • Investments: ₹1,292 crore
  • Trade Receivables: ₹2,135 crore
  • Cash and cash equivalents: ₹53 crore

Liabilities and Equity:

  • Total Equity: ₹11,665 crore (vs ₹10,966 crore in March 2026)
  • Equity Share Capital: ₹39 crore
  • Other Equity: ₹11,627 crore
  • Non-Current Liabilities: ₹2,559 crore
  • Borrowings: ₹1,616 crore
  • Current liabilities: ₹6,355 crore
  • Borrowings: ₹4,370 crore
  • Trade Payables: ₹1,013 crore

Cash Flow (H1FY27)

  • Operating profit before working capital changes: ₹1,372 crore
  • Changes in working capital: -₹1,224 crore
  • Cash generated from operations: ₹147 crore
  • Direct taxes paid (net of refund): -₹148 crore
  • Net Cash from Operating Activities: -₹1 crore
  • Net Cash from Investing Activities: -₹1,804 crore
  • Net Cash from Financing Activities: ₹1,831 crore
  • Net Change in cash and cash equivalents: ₹26 crore

Strategic Partnership with Pirelli

Overview:

  • BKT and Pirelli entered strategic agreement to address India's passenger car tire market opportunities
  • BKT will manufacture Pirelli-branded PCR tires at Bhuj plant to Pirelli's specifications
  • Separate service agreement provides Pirelli technical support for testing BKT-branded tires

Offtake Arrangement:

  • Production to begin in 2027
  • Supplies to increase gradually to reach 800,000 Pirelli-branded tires by 2030
  • Pirelli has minimum annual offtake commitment with corresponding capacity commitment from BKT

Proposed Joint Venture:

  • 50:50 joint venture envisaged, subject to agreed conditions
  • JV intended to establish new India plant for PCR tires under Pirelli and BKT brands
  • JV agreement and incorporation targeted by 31 December 2030, subject to conditions precedent

Strategic Rationale:

  • Supports BKT's expansion into passenger car tire segment
  • Creates potential in domestic and international markets
  • Combines Pirelli's premium positioning and technology with BKT's manufacturing scale
  • India car registrations estimated to grow 5-7% annually from 2025-30
  • Premium car tire market projected to grow almost fivefold

Growth Roadmap and Strategy

Overall Targets:

  • 2.2x Revenue Growth by FY30
  • Overall Capex till FY29: ₹6,800 crore
  • Achieve 8% global market share in OHT segment

OHT Strategy:

  • Agricultural Tires: Sustain and consolidate global leadership
  • Mining Tires: Full range in both Bias and Radial technologies up to 57 inches
  • Ongoing capex of 35,000 MTPA with de-bottlenecking efforts
  • OHT tire capacity to increase to 425,000 MTPA
  • Target 70% revenue contribution by FY30
  • Strategic goal of reaching 10% global market share

Carbon Black Expansion:

  • Capacity increased to 360,000 MTPA with co-gen power capacity of 64 MW at Bhuj
  • Target ~10% revenue contribution by FY30
  • Ensure raw material availability and energy circularity

On-Road Business Strategy for India:

  • Modular entry into Premium Passenger Car Radial Tires and Commercial Vehicles Radial Tires
  • Initial focus on Indian Replacement Market
  • CV Radial tires pilot launched in Q4FY26, ramping up gradually
  • PCR tires pilot to follow in January 2027, ramping up gradually

Current Capacities and Operations

Manufacturing Facilities:

  • Tire Manufacturing: 4 plants
  • Carbon Black Manufacturing: 1 plant
  • Mould Manufacturing: 1 plant
  • Drum Manufacturing: 1 plant
  • Wind Farm: 1

Current Capacities:

  • Tire manufacturing achievable output: 360,000 MTPA
  • Carbon Black achievable capacity: 360,000 MTPA (including 30,000 MTPA of high-value advanced carbon material)

Global Presence:

  • Sales to over 160 countries
  • Distribution network in Americas, Europe, India and rest of world
  • Over 3,600 SKUs in product portfolio

Recent Achievements & Milestones

Awards and Recognitions:

  • Received Caterpillar "Excellence Level" recognition for fourth consecutive year
  • Bhuj plant achieved Five-Star rating from British Safety Council

Infrastructure Development:

  • Inaugurated Vehicle Dynamics & Testing base at NATRAX in Indore
  • Extended partnership with Cricket Australia through 2028-29 seasons

New Initiatives:

  • Introduced 'YOU FORWARD' 24x7 journey assistance program for two-wheeler riders
  • Brand ambassadors: Ravichandran Ashwin and Ranveer Singh

Sustainability and ESG

ESG Approach:

  • Environment: Climate resilience, energy management, emission management, waste management, water stewardship, biodiversity protection
  • Social: Labour management, training, diversity, occupational health and safety, education, health, rural development
  • Governance: Economic performance, corporate governance, business ethics, sustainable supply chain, innovation

Community Initiatives:

  • Donated robotic surgery systems to AIMS Thane & KEM Hospital Mumbai
  • Supported Tata Memorial Hospital for cancer care access
  • Partnered with BAVP to strengthen rural healthcare
  • Served over 20,000 mid-day meals with Akshaya Patra
  • Supported Muktangan Education Trust for inclusive learning
  • Constructing Community Hall for Ahir Samaj in Bhuj
  • Inaugurated Sports Injury and Rehabilitation Centre at KEM hospital

Ratings

  • S&P Global ESG score: 58 (Top among Indian Industry Peers)
  • CRISIL Rating: AA/Positive to AA+/Stable
  • Crisil ESG Rating: 57 (+3), Adequate