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Balkrishna Industries (BKT ) just hit a rough patch. The off-highway tyre maker reported a 25 per cent drop in Q4 FY25 net profit to Rs 362 crore, dragging its stock down by 6.1 per cent on Monday (May 26, 2025). Though revenue rose 5 per cent year-on-year (YoY), that wasn't enough to offset pressure from rising costs. Margins took a hit, and the market didn't take it lightly.
Q4 FY25 results summary
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue | Rs 2,838 crore | Rs 2,700 crore | 5 per cent |
| Net profit | Rs 362 crore | Rs 483 crore | -25 per cent |
| EBITDA margin | 24.8 per cent | 25.9 per cent | -115 bps |
| Volume | 82,062 metric tonnes | 82,125 metric tonnes | No change |
Besides a poor fourth quarter, BKT's Rs 3,500 crore capex plan to enter the competitive truck and passenger car tyre market has fueled investor worries. While that could be a growth lever, it's also a risky and capital-intensive move.
About the company
Balkrishna Industries (BKT) makes specialised tyres for agriculture, mining, and construction. It exports to over 160 countries and is one of the top global players in the off-highway tyre segment. Lately, it's been trying to branch out into more mainstream tyre segments.
Below is a summary of its fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 48,039 crore |
| ROE | 17.9 per cent |
| ROCE | 18 per cent |
| P/E ratio | 29 |
| P/B ratio | 4.6 |
| Dividend yield | 0.6 per cent |
| Book value | Rs 537.3 |
| EPS | Rs 85.6 |
How does Value Research Online rate Balkrishna Industries?
Balkrishna Industries holds an impressive rating of 4/5 by Value Research .
Here's how it is rated across other metrics.
-
Quality:
7/10
-
Growth:
7/10
-
Valuation:
5/10
- Momentum: 6/10
The bottom line
Despite the decline in net profit and pressure on margins, there's a silver lining to BKT's financials. Its annual profit rose 13 per cent to Rs 1,628 crore while annual revenue crossed Rs 10,600 crore. But the Q4 stumble is a reminder that high input costs and execution risks can quickly deflate sentiment.
If you're holding the stock, this isn't a panic moment, but caution is warranted. With margins under pressure and a bold new expansion underway, investors will need to watch the company's grip on costs and strategy. For now, tread carefully.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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