Capex Announcement
Updates dailyStrategic Capacity Play with Near-term Headwinds Balkrishna's INR 750 crore Bhuj expansion adds 240,000-250,000 MT annually, supporting INR 23,000 crore 2030 vision. Revenue potential: INR 2,400-2,750 crore incrementally. However, FY26 faces margin compression (21.0-21.5%) from ramp-up dilution and tariff headwinds, improving to 22.5-23.5% by FY28 via operating leverage and off-highway segment premiums (22-25% EBITDA margins). EBITDA grows 15-18% CAGR through FY28. Key risks: US tariffs, European weakness, raw material inflation. Valuation warrants near-term discount pending utilization confirmation beyond Q3 FY26.
Strategic Capacity Play with Near-term Headwinds Balkrishna's INR 750 crore Bhuj expansion adds 240,000-250,000 MT annually, supporting INR 23,000 crore 2030 vision. Revenue potential: INR 2,400-2,750 crore incrementally. However, FY26 faces margin compression (21.0-21.5%) from ramp-up dilution and tariff headwinds, improving to 22.5-23.5% by FY28 via operating leverage and off-highway segment premiums (22-25% EBITDA margins). EBITDA grows 15-18% CAGR through FY28. Key risks: US tariffs, European weakness, raw material inflation. Valuation warrants near-term discount pending utilization confirmation beyond Q3 FY26.
Strategic Capacity Play with Near-term Headwinds Balkrishna's INR 750 crore Bhuj expansion adds 240,000-250,000 MT annually, supporting INR 23,000 crore 2030 vision. Revenue potential: INR 2,400-2,750 crore incrementally. However, FY26 faces margin compression (21.0-21.5%) from ramp-up dilution and tariff headwinds, improving to 22.5-23.5% by FY28 via operating leverage and off-highway segment premiums (22-25% EBITDA margins). EBITDA grows 15-18% CAGR through FY28. Key risks: US tariffs, European weakness, raw material inflation. Valuation warrants near-term discount pending utilization confirmation beyond Q3 FY26.
Strategic Capacity Play with Near-term Headwinds Balkrishna's INR 750 crore Bhuj expansion adds 240,000-250,000 MT annually, supporting INR 23,000 crore 2030 vision. Revenue potential: INR 2,400-2,750 crore incrementally. However, FY26 faces margin compression (21.0-21.5%) from ramp-up dilution and tariff headwinds, improving to 22.5-23.5% by FY28 via operating leverage and off-highway segment premiums (22-25% EBITDA margins). EBITDA grows 15-18% CAGR through FY28. Key risks: US tariffs, European weakness, raw material inflation. Valuation warrants near-term discount pending utilization confirmation beyond Q3 FY26.
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