Balkrishna Industries Targets ₹23,000 Crore Revenue by FY30 Through On-Road Tyre Expansion

Balkrishna Industries (BKT) is expanding its business model by entering the passenger car tyre market in November, aiming to double its consolidated revenue to ₹23,000 crore by FY30. The company is backing this push with a ₹6,800-crore investment programme through FY29, alongside growth in its core off-highway tyres and carbon black divisions.

Tyre manufacturer Balkrishna Industries (BKT) has announced plans to enter the mainstream passenger-car tyre market in November, following its entry into truck and two-wheeler tyres in April. The move is part of a broader strategy to scale its on-road tyre business to ₹5,000 crore by FY30.

The company closed FY26 with consolidated revenue of ₹10,823 crore, accompanied by weaker profitability as EBITDA fell to ₹2,552 crore from ₹2,996 crore, and net profit declined to ₹1,243 crore from ₹1,655 crore. However, BKT has reported a stronger start to FY27, with Q1 standalone revenue rising 25.2 per cent year-on-year and net profit jumping 56.4 per cent. For the full year, the company is targeting tyre volumes of 3,30,000 to 3,40,000 tonnes.

According to Satish Sharma, Senior President & Director – Business Development and Strategy at Balkrishna Industries, FY27 will serve as a seeding phase for the new automotive categories, with meaningful financial impact expected from FY28 onward. The company's on-road expansion is backed by a ₹6,800-crore investment programme running through FY29.

Traditionally known for specialised off-highway tyres used in agriculture, industrial, earthmoving, and mining applications, BKT distributes more than 3,600 products across 163 countries. Exports currently account for roughly 65 per cent of its revenue, with the Bhuj plant producing about 70 per cent of those exports—a share expected to rise to 80 per cent next year. Through its domestic consumer push, BKT is targeting approximately 5 per cent of India’s non-off-highway tyre market.

To support its entry into consumer segments, BKT has revamped its brand architecture and increased marketing efforts, including sports associations such as T20 cricket. The company reports that brand recognition and awareness have risen by 11 per cent.

BKT’s new on-road portfolio is designed to be powertrain agnostic and EV-ready, catering simultaneously to internal combustion engines (ICE), CNG, and electric vehicles. The company plans to introduce a dedicated EV range once the electric vehicle population scales up sufficiently.

Beyond the new on-road segments, BKT is relying on two other growth engines: its established off-highway tyre business, which the company expects to expand over the next four to five years despite geopolitical and tariff uncertainties in Europe and the US, and its carbon black division. Originally established in 2019 primarily for captive needs, carbon black has evolved into a notable third-party revenue stream.

Meanwhile, the company faces immediate margin pressures driven by rising input costs. BKT has raised prices by 9 per cent over the past four months, though Sharma noted that an 18 to 20 per cent increase is ultimately required to fully offset cost pressures, making at least one more price revision likely this year.

"Balkrishna Industries' strategic shift from a specialized exporter to a domestic consumer player highlights the importance of portfolio diversification for mature manufacturers. By entering the passenger car and EV-ready tyre segments backed by a substantial capital expenditure plan, BKT is looking to unlock new domestic demand streams. However, managing input cost volatility and protecting profit margins will be critical factors in successfully achieving their long-term revenue targets by FY30." — Dr. Shishir Gupta, Founder & CEO, StartupLanes