Latest news with #Balkrishna
Mint
29-07-2025
- Automotive
- Mint
Margin management turns tricky for Balkrishna amid soft demand, new bets
Balkrishna Industries Ltd is facing earnings downgrades as the tyre maker grapples with twin headwinds: weak demand and margin compression. Its June-quarter (Q1FY26) performance was weighed down by muted demand in its key export market, Europe, and the impact of US tariffs, which have kept the ordering cycle volatile. Volumes declined 3% year-on-year to 80,664 tonnes in Q1, and the management refrained from providing a volume guidance for FY26. Revenue was largely flat at ₹2,759 crore, while Ebitda fell 8% to ₹656 crore. The 228 basis point (bps) drop in Ebitda margin to 23.8% was seen as a key disappointment. The company has guided for an operating margin of 24-25% for FY26. A base tariff of 10% applies to Balkrishna's exports to the US, and the company has been unable to pass on the entire increase to consumers. It has absorbed 40% of the impact, which is expected to persist through Q2FY26. 'With multiple US trade tariffs getting finalized at around 15% (EU/Japan), we believe India tariffs are likely to inch up from around 10%. This remains a near-term demand/margin headwind for Balkrishna," said a Nomura Global Markets Research report. It has cut its FY26 Ebitda and earnings per share forecast by 8% and 16% respectively. While raw material costs are expected to remain stable sequentially in Q2FY26, margin pressures are likely to continue. Balkrishna, which has a niche in the off-highway tyre (OHT) segment, recently announced plans to diversify into domestic tyre categories including truck and bus radials and passenger car radials (PCR). The concern, however, is that this expansion could be margin-dilutive over the medium term, given intense competition from established players. Balkrishna would launch commercial vehicle radial tyres by Q4FY26 and PCR tyres by Q3FY27.A capital expenditure of ₹3,500 crore has been outlined for the next three years. 'Considering the higher upfront investments in the new tyre segments which have higher competitive intensity and lower margins than the company's core business, and the lack of visibility for business normalcy of its core business, we remain cautious," said HDFC Securities. After hitting a 52-week low of ₹2,152.05 apiece on 7 April, following the Liberation Day tariff announcement, the stock has recovered to ₹2,746. It now trades at an undemanding 25x FY27 earnings estimates, according to Bloomberg. However, Balkrishna has yet to prove itself in the new segments, and striking a balance between gaining market share and protecting core returns could be a significant challenge.
Time of India
26-06-2025
- Science
- Time of India
Four top Universities come together to promote traditional Indian knowledge
(Image: @Ach_Balkrishna/X) Bringing the right mix of traditional knowledge with modern education, Patanjali University, Raja Shankar Shah University in Chhindwara, Hemchand Yadav University in Durg, and Mahatma Gandhi Chitrakoot Gramodaya Vishwavidyalaya in Chitrakoot, have signed Memorandums of Understanding (MoUs) to promote work in education, health, yoga, Ayurveda , and skill development. The announcement was made by Acharya Balkrishna, Vice-Chancellor of Patanjali University on X, and he described the development as a step toward national transformation through ancient and practical wisdom. He noted that this partnership is not just about academics, but also covers 'Rishi Kranti', 'Yoga Kranti' and 'Shiksha Kranti', which hinted at a revival in India's ancient sage-led knowledge systems, yogic discipline, and traditional education values. Building on Indian roots The Universities have come together with the vision of creating a space where ancient Indian sciences could be studied with modern relevance. Be it disciplines like yoga science, Ayurveda, Sanskrit, natural medicine, or Vedic studies, research will be facilitated for them all. A positive step for Education The signed agreements allow the universities to jointly conduct research, develop academic courses, share teaching material, and organise student exchange and training programmes. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Explore the impact of art on environmental conservation efforts. Rolex Read Now Undo The idea is to blend the best of modern learning methods with traditional Indian wisdom. And with the 4 University's expertise and experience in research, this collaboration will be a positive step towards ancient education blended with modern results and sciences. Students will have access to shared libraries, digital tools, herbal gardens, and specialised labs. Overall, the aim of this step is clear in making education the forefront on which Indians can revive their ancient practices. And the signing of the MoU will make Indian traditional knowledge a strong part of mainstream academics, helping not only individuals but society as a whole.
Time of India
30-05-2025
- Time of India
1 dead, 3 injured in 2 tree fall incidents in eastern suburbs
Mumbai: One person died and three others were injured in two separate tree and branch fall incidents at Sewri and Kurla East in the 24 hours from 8am on Wednesday. Ranjan Nishad (27), a plumber, suffered injuries after a huge Gulmohar tree in a private compound got uprooted and fell on his scooter near Fatima School, Sewri Cross Road, around 8:30pm on Wednesday. He passed away at KEM Hospital around 1:30am on Thursday. The condition of Nishad's relative, plumber K Balkrishna (33), who was riding pillion rider on the scooter, is said to be stable. Balkrishna, who suffered serious injuries to his left leg, is admitted to KEM Hospital. In another incident, a branch fell on two pedestrians, injuring them, near Jaitvan Garden, Thakkar Bappa Colony Road, Kurla East, at 11:30pm on Wednesday. The condition of the two is said to be stable. F-South ward officials said Sewri's Angel Housing Society where the Gulmohar tree got fatally uprooted, had sought permission for trimming the tree, but they did not carry it out. The BMC's F-South ward has sought the opinion of the garden department on whether a notice could be issued to the society regarding the incident. It occurred when Nishad and Balkrishna were returning home to Nalasopara after completing a plumbing job at a BMC office in Cotton Green. Balkrishna, in pain and facing the prospect of surgery, remains unaware that Nishad is dead. "About 15 to 20 people helped us, and we were rushed to the hospital in a taxi," said Balkrishna, who makes about Rs 15,000 a month and will likely have to return to his village in UP until he recovers. BMC superintendent gardens Jitendra Pardeshi did not respond to calls from TOI seeking a comment on the incident. A BMC's F-South ward and garden department official said, "We have sought the opinion of the garden department as to what action can be pursued against the society."
News18
26-05-2025
- Automotive
- News18
Balkrishna Industries Crashes 10% On Price Target Cuts, Expansion Concerns; Key Points
Last Updated: Shares of Balkrishna Industries Ltd plunged over 10% following a wave of price target downgrades by brokerages; Check latest target price Balkrishna Industries Share Price Today: Shares of Balkrishna Industries Ltd plunged over 10% in Monday's trade following a wave of price target downgrades by brokerages. The declines came amid continued concerns over demand uncertainty and the company's expansion into new tyre segments — particularly the Premium Passenger Car Radial (PCR) and Truck and Bus Radial (TBR) categories — which analysts believe could weigh on return on equity (ROE) in the short term. The stock hit an intraday low of Rs 2,385, down 10.33%, and has now dropped 15.82% year-to-date in 2025, underperforming the BSE Auto index, which is up 2.12% in the same period. In terms of financial performance, Balkrishna's Q4FY25 revenue beat Bloomberg estimates by 4%, while EBITDA margin stood at 24.8%, just shy of the consensus 25% estimate. EBITDA remained flat year-on-year, slightly above expectations. According to Nomura India, Q4 volumes were 82,000 tonnes, unchanged year-on-year, while average selling prices (ASPs) rose 2.7% quarter-on-quarter. However, the bottom line disappointed due to lower other income and higher interest expenses, resulting in a 25% year-on-year decline in PAT. Nomura downgraded the stock from 'Buy' to 'Neutral', citing concerns over the potential ROE dilution from its diversification into new tyre segments. It revised the target price upward to Rs 3,242 from Rs 2,644 earlier, factoring in the medium-term potential but also noting execution risks. Motilal Oswal Financial Services (MOFSL) also flagged ongoing demand headwinds in Balkrishna's key export markets. The brokerage cut its FY26 and FY27 earnings estimates by 8% each, and expressed skepticism over the company's entry into the niche PCR and TBR segments. 'Whether Balkrishna can gain meaningful market share in these new categories without significantly diluting margins and returns remains a key uncertainty," MOFSL noted. While the stock's valuations are no longer demanding, future re-rating would hinge on execution success, it said. Meanwhile, Nirmal Bang Institutional Equities maintained a 'Hold' rating on the stock, trimming its target price to Rs 2,645 from Rs 2,718. The brokerage said it continues to project a 9% volume CAGR over FY25–FY27, with margins improving to 26.2% by FY27. Despite near-term concerns, it believes Balkrishna remains a strong franchise, and its low-cost operations and geographic marketing efforts could drive superior long-term margins. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published:
