Geojit Financial Services research report on Balkrishna Industries
In Q4FY26, BKT’s consolidated revenue rose 6.6% YoY to Rs. 2,933cr, aided by 5% YoY growth in sales volume to 85,820 MT. In FY27, the company intends US volume to again account for 10% of total sales. EBITDA grew 4.3% YoY to Rs. 640cr in Q4FY26 because of the higher topline. However, EBITDA margin narrowed 50bps YoY to 21.8% as raw material expenses (+11.6% YoY) and other expenses (+18.9% YoY) rose. Reported profit after tax (PAT) declined 18.7% YoY to Rs. 299cr due to adverse movement in other income. The company’s capital expenditure (capex) estimate for FY27 is Rs. 1,500-1,800cr, along with an annual maintenance cost of Rs. ~200cr.
Outlook
Hence, we upgrade our rating on the stock to BUY, with a rolled-forward target price of Rs. 2,547, based on 26x FY28E adjusted EPS.
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Balkrishna Industries - 0406026 - geo