Balkrishna Industries raises Rs 550 crore as debt grows

Balkrishna Industries Limited issued Rs 550 crore of listed unsecured non-convertible debentures during the quarter ended September 30, 2026, as consolidated borrowings reached Rs 6,046.60 crore and capital work-in-progress rose to Rs 3,740.51 crore. The company disclosed the movements with its unaudited half-year results approved on November 4, 2026.

How much did Balkrishna Industries raise through NCDs?

Balkrishna Industries raised Rs 550 crore through a private placement of 55,000 listed unsecured non-convertible debentures, or NCDs, during the September 2026 quarter. Each debenture had a face value of Rs 1 lakh, according to the additional disclosures accompanying the financial results. The filing does not state the coupon, tenure, repayment schedule or specific use of the NCD proceeds.

The NCD issue was disclosed alongside Rs 200 crore of commercial paper outstanding at September 30, 2026. Balkrishna Industries said the commercial paper was not due for repayment on that date and had a CRISIL A1+ rating. The filing separately identifies the Rs 550 crore NCD issue and the Rs 200 crore commercial-paper balance.

Consolidated cash-flow data show proceeds from long-term borrowings of Rs 4,556.03 crore in the half year ended September 30, 2026, against Rs 726.69 crore a year earlier. Repayments of long-term borrowings were Rs 2,476.26 crore, compared with Rs 570.67 crore, while net cash from financing activities rose to Rs 1,834.14 crore from Rs 28.67 crore.

How much did Balkrishna Industries' borrowings increase?

Balkrishna Industries' consolidated borrowings increased by Rs 1,941.04 crore to Rs 6,046.60 crore at September 30, 2026, from Rs 4,105.56 crore at March 31, 2026. Current borrowings accounted for Rs 4,430.82 crore of the September total, while non-current borrowings were Rs 1,615.78 crore. Current borrowings contributed Rs 1,213.26 crore of the six-month increase.

Balkrishna Industries reported a consolidated debt-equity ratio of 0.52 times at September 30, 2026, compared with 0.37 times at March 31, 2026 and 0.35 times a year earlier. Its total-debt-to-total-assets ratio was 0.29 times, versus 0.23 times at March 31, 2026. Consolidated net worth was Rs 11,664.17 crore, up from Rs 10,955.29 crore six months earlier.

Consolidated finance cost was Rs 104.25 crore for the half year ended September 30, 2026, compared with Rs 63.33 crore a year earlier. In the September 2026 quarter, finance cost was Rs 67.48 crore, against Rs 36.77 crore in the preceding June 2026 quarter.

What does Balkrishna Industries' capital work-in-progress show?

Balkrishna Industries' consolidated capital work-in-progress, or CWIP, increased by Rs 1,268.05 crore in six months to Rs 3,740.51 crore at September 30, 2026. CWIP represents expenditure on projects not yet transferred into completed property, plant and equipment. The corresponding balance at March 31, 2026 was Rs 2,472.46 crore.

The increase in projects under construction exceeded the Rs 402.34 crore rise in completed property, plant and equipment over the same six-month period. Balkrishna Industries recorded consolidated purchases of property, plant and equipment of Rs 1,966.83 crore in the half year, up from Rs 1,683.69 crore in the comparable 2025 period.

Management said previously announced capital expenditures are expected to be completed according to schedule and within the approved budget. The filing does not identify individual projects, capacities, locations, commissioning dates, or the share of the Rs 550 crore NCD proceeds allocated to capital expenditure.

How did Balkrishna Industries' operating cash flow change?

Balkrishna Industries generated consolidated operating profit before working-capital changes of Rs 1,400.49 crore in the half year ended September 30, 2026, compared with Rs 1,163.29 crore a year earlier. Working-capital changes used Rs 1,221.13 crore, including Rs 754.55 crore for inventories and Rs 571.32 crore for trade and other receivables.

Consequently, consolidated net cash from operating activities was Rs 26.82 crore for the September 2026 half year, compared with Rs 1,262.85 crore in the prior-year period. Consolidated inventories rose to Rs 2,563.05 crore at September 30 from Rs 1,808.47 crore at March 31, while trade receivables increased to Rs 1,897.95 crore from Rs 1,446.57 crore.

Consolidated cash and cash equivalents were Rs 102.96 crore at September 30, 2026, compared with Rs 60.92 crore at the start of the half year. Investing activities used Rs 1,818.80 crore, including Rs 1,966.83 crore for property, plant and equipment purchases, while financing activities generated Rs 1,834.14 crore.

What were Balkrishna Industries' latest earnings and coverage ratios?

Balkrishna Industries reported consolidated revenue from operations of Rs 6,927.01 crore for the half year ended September 30, 2026, up from Rs 5,153.47 crore a year earlier. Consolidated profit after tax rose to Rs 743.39 crore from Rs 561.49 crore. The company has one reportable business segment, tyres, under Indian Accounting Standard 108.

The quarter-to-quarter comparison showed lower profitability in the September period. Consolidated profit after tax was Rs 292.62 crore in the quarter ended September 30, 2026, compared with Rs 450.37 crore in the preceding June 2026 quarter. Consolidated operating margin was 11.91% in the September quarter, down from 15.57% in the June quarter.

The consolidated interest service coverage ratio was 16.44 times for the September 2026 quarter and 23.27 times for the half year, against 58.94 times and 74.64 times respectively a year earlier. The debt service coverage ratio was 3.08 times for the September quarter and 3.95 times for the half year, compared with 58.94 times and 4.76 times in the respective prior-year periods. Balkrishna Industries stated that quarterly and half-year ratios are annualised.

Conclusion

Balkrishna Industries combined a Rs 550 crore listed unsecured NCD issue with higher overall borrowings during a period of elevated capital expenditure. Consolidated borrowings rose to Rs 6,046.60 crore, CWIP reached Rs 3,740.51 crore, and property, plant and equipment purchases used Rs 1,966.83 crore in the first half. Revenue and first-half profit increased year on year, while inventory and receivable movements absorbed most operating cash generation.

The next disclosed matter to watch is the completion of previously announced capital expenditure according to schedule and within the approved budget, as management stated. Balkrishna Industries also set November 11, 2026 as the record date for its Rs 4 per share second interim dividend, with payment or credit planned within 30 days of the November 4 declaration.