Balkrishna Industries (BKT) reported a six percent rise in quarterly volumes and commissioned additional carbon black capacity, even as US tariffs and volatile commodity prices weighed on parts of its export business.

The company’s sales volumes rose to 80,620 metric tonnes in the quarter to December 2025, up six percent year on year and about 15 percent higher than the previous quarter. For the first nine months, volumes were 231,536 metric tonnes, down onepercent from a year earlier.

Standalone revenue for the quarter was INR 26.82 billion, up 4 per cent year on year, including a realised foreign exchange loss of Rs 470 million relating to sales. For the nine months, revenue was Rs 77.62 billion, broadly flat, including a realised forex loss of Rs 1.17 billion.

Earnings before interest, tax, depreciation and amortisation were Rs 6.05 billion for the quarter, with a margin of 22.5 percent. For the nine months, EBITDA was INR 17.6 billion, down 11 percent year on year, with a margin of 22.7 percent. Profit after tax for the quarter was INR 3.75 billion, and INR 9.27 billion for the nine-month period.

Rajiv Poddar, Joint Managing Director of BKT, said the “geopolitical and macroeconomic environment continues to remain challenged and the situation with U.S. tariffs remain unchanged”.

In the US, sales momentum improved sequentially after a weak second quarter. Poddar said the group had regained some momentum by sharing the tariff burden with distributors. “Because of our strong brand positioning and quality and some major chunk of the tariffs to be shared between us and our channel partners, we have been able to gain some of the momentum that we had lost in the Q2,” he said.

He declined to quantify the impact of tariffs on margins, but confirmed that costs were being shared. Channel inventory in the US and Europe was “at par at where it should be”.

India remained the strongest market, supported by lower goods and services tax rates and favourable monsoon conditions. The domestic portfolio is split roughly 60 percent industrial and construction tyres and 40 percent agricultural tyres. Higher India contribution has a “slightly lower” average selling price, Poddar said, but margins have remained broadly stable.

In Europe, demand improved sequentially as earlier destocking eased. The European Union Deforestation Regulation, originally due to take effect from January 2026, has been deferred by one year. Madhusudan Bajaj, Senior President and Chief Financial Officer, said the current import duty into Europe is four percent, though the impact of the proposed free trade agreement with the EU is not yet clear.

Freight costs were about 5 percent of revenue in the quarter and are expected to remain in that range.

On raw materials, Bajaj said oil and natural rubber prices were moving higher, but it was “too early to say what will be the impact”. The average euro rate in the quarter was about INR 97.

Capital expenditure remains elevated. The company has spent about INR 22 billion in the first nine months of the financial year and expects total spending of roughly INR 25–26 billion in FY2026, with the balance of committed projects to be completed in the following year.

During the quarter, BKT commissioned a new carbon black line, taking total capacity to 265,000 metric tonnes per annum. The incremental capacity is intended for external sales rather than captive consumption. Carbon black accounted for less than 10 percent of revenue in the quarter, with margins expected to align with industry averages.

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PRINX CHENGSHAN has achieved another major milestone in its direct sales and original equipment business with the selection of its PRINX AQUILA PRO tyre as original equipment fitment for the NEVO Q05, a global high-volume model from Chang'an Qiyuan.  The pairing made a notable impact at the 47th Bangkok International Motor Show, where the vehicle’s appearance drew widespread international attention.

The PRINX brand, representing the mid-to-high-end segment under PRINX CHENGSHAN, centres its approach on using tangible technology to enhance mobility. The AQUILA PRO tyres delivered for Chang'an Qiyuan combine efficient braking enabled by advanced structural engineering with EU Class A rolling resistance and responsive handling. This performance profile directly supports Chang'an Qiyuan’s commitment to a superior all-around user experience, reinforcing a partnership aimed at building a refined mobility ecosystem.

The Bangkok exhibition also highlighted the growing market presence of PRINX across multiple platforms. Both the MG5 PRO Thai Version and the MG S5 EV Thai Version run on the AQUILA PRO tyres, gaining traction in Thailand through accessible pricing and strong technical capability. Separately, the Ora 5, an all-electric A-segment SUV, debuted globally in Bangkok equipped across its lineup with the PRINX XNEX SPORT EV tyres, underscoring its blend of design, intelligence and global readiness.

With a rapidly evolving global network encompassing two major R&D centres, four technology centres and three smart manufacturing bases, PRINX CHENGSHAN has steadily advanced its product innovation and direct sales channels. The company’s forward-looking strategy centres on a products plus services model, integrating quality manufacturing with full lifecycle support to drive green and intelligent mobility. Through close collaboration with partners, it seeks to foster sustainable industry development and bring the strengths of China’s intelligent manufacturing to a broader global audience.

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India’s tyre sector is moving into a steadier phase after cyclical tailwinds from GST-led formalisation and rural demand. Srikumar Krishnamurthy, Senior Vice-President and Co-Group Head, Corporate Ratings at ICRA, says replacement demand will continue to anchor growth in FY2027 even as original-equipment volumes soften. Premiumisation is lifting tyre makers’ realisations, though input volatility and competition cap pricing power. Export prospects are improving with new trade agreements, but regulatory risks and cost pressures persist as companies balance capex with discipline.

ICRA expects the Indian automotive sector’s wholesale growth to normalise in FY2027. How does this moderation in vehicle volumes translate into tyre demand across OEM and replacement channels?

The normalisation of wholesale volume growth in FY2027 follows a period of elevated growth in the second half of FY2026, which was driven largely by post-GST reform-led factors and favourable rural demand sentiments. The moderation in wholesale volume growth will consequently translate to a similar growth in OE segment. The aftermarket segment, however, will follow the inherent replacement cycle of different sub-segments and other fundamental factors.

Replacement demand currently anchors tyre industry growth. What level of growth do you expect in this segment going forward?

The replacement segment saw a robust growth in the last 4–5 months supported by the post effects of GST rate cuts and healthy rural demand following good monsoons and crop output. The current sentiments are favourable, with factors around economic activities, freight rate movement and farm output reflecting optimistic picture. The segment is likely to outperform the OE segment in FY2027 supported by inherent factors like replacement cycle, safety awareness and regulatory forces.

Premiumisation is evident in vehicles and tyres alike. How is the shift towards larger rim sizes, radialisation and higher-value products shaping revenue growth versus volume growth in FY2026–27?

A change in product mix has been observed in recent times. Rising preference for utility vehicles, premium bikes and electric vehicles have resulted in changes to the average selling price (ASP) of tyre makers. While these elongates the product replacement cycle over time, higher share of sales of large rim sizes and high-performance tyres results in premium pricing and value growth. That said, pricing pressure because of competition and movement in input prices restricts the premium to an extent, in certain segments.

What impact do you expect from the evolving trade agreements between India and United States, along with the proposed India-EU free trade deal, on tariffs for tyres produced and exported from India?

US and Germany are the top-two destinations for Indian tyre exports. Overall, tyre export volumes grew by around 10 percent in FY2025 and around eight percent in H1 FY2026. The recent signing of India-UK and India-EU deals is a positive as Indian tyres are increasingly getting exported to these regions in recent period, reflecting better acceptance. While the developments on India-US tariff-related aspects are a positive, stability in tariff reforms will be critical towards better visibility of exports.

With exporters pivoting towards Europe, Africa and Latin America, what competitive or regulatory barriers might Indian tyre makers face in these markets over the next 12–18 months?

The prospects of Indian exporters remain vulnerable to the regulatory actions and competitive forces. The US tariff-related developments have made tyre makers in

South-East Asia and China more competitive (as compared to India), although the changes in tariff rates is a positive development for Indian exporters. While a depreciating rupee was beneficial, the recent capping of RodTEP benefits is a negative impacting the competitiveness of Indian tyre makers.

Natural rubber prices have remained elevated and volatile. How do you expect raw-material cost trends to evolve in FY2027, and what does this imply for tyre company margins and pricing power?

Rubber prices largely track the demand-supply factors. The prices have largely been volatile in recent years and were affected by a relatively subdued consumption globally. While the supply will remain influenced by weather and other related factors, the global tyre demand is likely to be relatively better, thus keeping the prices firmer in the coming year.

Beyond rubber, inputs such as carbon black and crude-linked derivatives are cyclical as well. Are tyre manufacturers adequately positioned to manage input volatility through sourcing strategies or pass-through mechanisms?

To protect the margins, tyre makers have resorted to better production planning, maintaining optimal inventory and altering the sourcing strategies. That said, the earnings profile of tyre makers remains exposed to any sharp volatilities in input prices, especially replacements.

Industry capex has remained steady, focused on radial capacity and premium segments. Do you foresee a new investment cycle in FY2027–28, or will companies prioritise balance-sheet discipline amid demand normalisation?

The industry’s capex spends are estimated at 8–10 percent of revenues with sizeable investments towards expansions in passenger vehicles and trucks and bus tyres, along with continued focus on debottlenecking, maintenance and R&D activities.

Looking beyond demand and costs, what are the most significant structural challenges facing the Indian tyre sector over the next three to five years – technology shifts, sustainability mandates or global competition?

Multiple trends are emerging in the auto industry, like vehicle premiumisation, changing powertrain mix, fluctuation in adoption of EVs across different product segments etc. In this backdrop, and coupled with global geo-political uncertainties and climate changes, tyre makers face challenges around business strategies. Strengthening technological capabilities, investments in premium performance tyres, enhanced usage of AI for operations, streamlining supply chain activities and diversification are the likely key focus areas for Indian tyre makers.

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Kumho Tyre UK has strengthened its leadership team with the appointment of Luke Emery as Sales Director for South East England, a move that coincides with the company’s expanding product range and reports of growing demand across the region. Bringing 22 years of deep-rooted experience in the tyre sector, Emery’s background spans both motorsport and passenger car applications, positioning him well to drive commercial performance in this key territory.

His appointment forms part of Kumho’s ongoing investment in its UK operations, reflecting a continued commitment to reinforcing the domestic team as demand rises for an increasingly diverse product portfolio. In this new role, Emery will work alongside the existing UK management and sales teams to deliver dedicated support to customers throughout the South East, ensuring the business remains responsive to evolving market needs.

Richard Lyons, Managing Director, Kumho Tyre UK, said, “We are delighted to welcome Luke to the Kumho team, adding to the enrichment of our team that we have seen over the past few months. The UK market has shown excellent acceptance of our latest products and Luke’s appointment reflects our commitment to building a talented, future-focused team that can support our customers and continue driving the growth of the Kumho brand across the UK.”

Emery said, “Having worked at Kumho in the past, I’m delighted to return at such an exciting time for the brand. Kumho has built a strong reputation for delivering high-quality tyres that offer excellent value and performance, and the market response to the new products has been extremely positive.”

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Clemson University has announced the appointment of Dr Saied Taheri to the External Advisory Board of its Mechanical Engineering department, strengthening ties between academia and research leadership. The move highlights the institution’s continued focus on advancing engineering education through experienced global contributors. Dr Taheri’s longstanding association with Clemson, where he completed his undergraduate, master’s and doctoral studies in mechanical engineering in 1984, 1986 and 1990, respectively, positions him as a deeply connected figure familiar with the university’s academic values and institutional goals.

Currently a professor at Virginia Polytechnic Institute and State University, Dr Taheri also serves as Director of the NSF-supported Industry–University Cooperative Research Center for Tire Research (CenTiRe). His career spans both academia and industry, including a tenure as a senior engineer at Goodyear Tire & Rubber Company and an adjunct faculty role at the University of Akron between 1998 and 2007. Since joining Virginia Tech in 2007, he has mentored a significant number of scholars. His research contributions have focused on tyre and vehicle dynamics, simulation technologies, intelligent tyre systems and chassis control.

In his new advisory capacity, Dr Taheri is expected to contribute to shaping departmental strategy and fostering innovation-driven initiatives. His combined expertise in research, teaching and leadership is anticipated to support Clemson’s efforts to enhance student outcomes and maintain excellence in mechanical engineering.

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