Balkrishna Industries has approved a ₹550 crore private placement of non-convertible debentures, strengthening its funding options while reporting strong quarterly growth driven by high demand in the off-highway tyre sector.
Balkrishna Industries has approved plans to raise up to ₹550 crore through a private placement of rated, listed, senior unsecured non-convertible debentures, adding fresh funding flexibility just as the tyre maker reported another quarter of solid growth. The company said its finance committee cleared the issue of 55,000 debentures with a face value of ₹1 lakh each, to be offered in tranches to eligible investors and listed on BSE Limited.
The company said the securities will be redeemable and non-cumulative, while the coupon, tenor, allotment date and repayment schedule will be set out when the debentures are issued. No security will be created over company assets for the borrowing, and the transaction will sit within the existing borrowing limits under the Companies Act, 2013. Balkrishna Industries’ board had already delegated authority to the finance committee on 29 July 2026 to finalise the terms.
The fundraising comes against a backdrop of stronger operating performance. Business Standard reported that revenue for the June quarter rose 25.19% year on year to ₹3,455.27 crore, with operating profit climbing 47.06% to ₹744.40 crore and profit before tax increasing 52.40% to ₹601.05 crore. Livemint separately reported total income of ₹3,455.27 crore, profit after tax of ₹450.77 crore and an operating margin of 15.57%, underscoring the strength of demand even as margin readings varied across the coverage.
In both reports, the off-highway tyres business accounted for 90% of volumes, with carbon black making up the rest. The company also reiterated its long-term goal of achieving 2.2 times revenue growth by 2030. Earlier market updates had said Balkrishna Industries had secured or sought a much larger NCD programme of ₹750 crore, with CRISIL and CARE assigning high-grade ratings to proposed issues, pointing to steady access to debt markets as the company expands its funding options.
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