Balkrishna Industries board approves ₹550 crore NCD issue via private placement

Off-highway tyres major Balkrishna Industries Ltd on Tuesday (August 18) said it has approved raising up to ₹550 crore through non-convertible debentures (NCDs) on a private placement basis.

The company's Finance Committee approved the issuance and allotment of 55,000 NCDs, each with a face value of ₹1 lakh, aggregating to ₹550 crore. The NCDs will be rated, listed, senior, unsecured, redeemable, non-cumulative and non-convertible, and will be issued to eligible investors in multiple tranches.

The debentures will be listed on BSE Limited. The tenure, date of allotment, maturity date, coupon or interest rate and payment schedule will be disclosed at the time of allotment.

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No charge or security will be created over the company's assets in connection with the issue. Details of redemption will also be disclosed at the time of allotment.

The issue will be within the current borrowing limits applicable to the company under Section 180(1)(c) of the Companies Act, 2013. The Board of Directors had delegated powers to the Finance Committee on July 29, 2026, including the authority to decide the terms and conditions of the NCD issue and related matters.

First Quarter Results

The company outperformed peers on the back of healthy demand, with volumes rising 16% year-on-year, ahead of management's guidance of a 10-12% increase.

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Strong volume growth helped drive a 24% jump in revenue during the quarter, while operating margins came in broadly in line with expectations despite moderating from a year ago.

For the June quarter, revenue rose 24% to ₹3,409 crore from ₹2,759 crore a year earlier. EBITDA increased 7% to ₹703 crore from ₹656 crore, while EBITDA margin narrowed to 20.6% from 23.8%.

The Off-Highway Tyres (OHT) business contributed 90% of total volumes during the quarter, while the carbon black segment accounted for the remaining 10%. The company also reiterated its long-term ambition of achieving 2.2x revenue growth by 2030.

Shares of Balkrishna Industries Ltd ended at ₹2,385.00, down by ₹24.20, or 1.00%, on the BSE.

ALSO READ | Balkrishna Industries Q3 net profit surges over 47%; declares interim dividend of ₹4 per share