Balkrishna stock: Operating cash flow plunges 98% in H1 FY27

Published on 11/10/2026 at 03:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Balkrishna stock faces tighter cash conversion after a sharp first-half operating cash flow decline. Revenue and profit still grew strongly.

Cash flow pressure meets strong growth

Working capital absorbed INR 1,221 crore in the first half of FY27, compared with an inflow of INR 259 crore a year earlier.
Revenue from operations rose 34 percent to INR 6,927 crore, while net profit increased 32 percent to INR 743 crore.
Higher inventories, receivables and accelerated capital spending are increasing the companys funding needs.

Balkrishna, INE787D01026, Illustration mit AI erstellt.

Balkrishna Industries saw operating cash flow fall sharply in the first half of fiscal 2026/27 as inventory, receivables and accelerated investment absorbed cash despite strong business growth. Autocar Professional reported the development on Thursday, November 5, 2026.

Working capital absorbs cash

Consolidated operating cash flow fell to INR 27 crore in the six months ended September 30, 2026, from INR 1,263 crore in the year-earlier period. Working-capital movements absorbed INR 1,221 crore, compared with a positive contribution of INR 259 crore a year earlier.

Inventory increased to INR 2,563 crore at the end of September from INR 1,808 crore in March. Trade receivables rose to INR 1,898 crore from INR 1,447 crore. Management linked part of the inventory build-up to supply-chain disruption and preparations for the European Union Deforestation Regulation, which is scheduled to apply to large and medium-sized operators from December 30, 2026.

Growth raises funding needs

Revenue from operations increased 34 percent year on year to INR 6,927 crore in the first half, while net profit rose 32 percent to INR 743 crore. In the September quarter, revenue increased 45 percent to INR 3,472 crore and net profit advanced 7 percent to INR 293 crore.

Capital expenditure reached approximately INR 1,850 crore in the first half. Consolidated borrowings rose to approximately INR 6,047 crore at the end of September from INR 4,106 crore at the end of March. Management said it had brought forward investment spending to accelerate project completion, while cost pressure from raw materials and freight is expected to continue.

Industrial tire maker with global reach

Balkrishna Industries, known as BKT, manufactures off-highway tires and operates an industrial group based in India. Its products serve agricultural, construction, mining and other mobility applications, with operations and commercial reach across Europe, North America and other international markets.

BKT is more specialized in off-highway tires than broad-based manufacturers such as Michelin and Bridgestone, while Goodyear has a larger exposure to passenger and commercial vehicle tires. BKT is therefore positioned as a focused global supplier in selected industrial tire segments rather than as a volume leader across the full tire market.