Nuvama maintained its buy rating on Balkrishna Industries, revising its target price to Rs 3,300, following Q3 FY25 results that showed steady operational performance. Volumes grew by 5% YoY to 76,343 tonnes, and revenue rose 11% YoY to Rs 2,541 crore, slightly above estimates. EBITDA increased 9% YoY to Rs 589 crore, in line with expectations, though margins dipped slightly to 23.2% from 23.6% in Q3 FY24, reflecting near-term demand softness.
Profit after tax surged 42% YoY to Rs 439 crore, driven by higher other income, which increased to Rs 187 crore from Rs 66.5 crore a year ago. While the near-term outlook remains subdued due to macroeconomic headwinds, Nuvama trimmed its FY26-27 EBITDA estimates by 5%, factoring in lower volume and margin assumptions. However, the brokerage remains optimistic about BKT’s ability to outperform the market, citing its strong quality-price mix and ongoing efforts to expand into diversified segments and geographies, which position it well for long-term growth.
