New Delhi, July 29 -- Balkrishna Industries Ltd is facing earnings downgrades as the tyre maker grapples with twin headwinds: weak demand and margin compression. Its June-quarter (Q1FY26) performance was weighed down by muted demand in its key export market, Europe, and the impact of US tariffs, which have kept the ordering cycle volatile.

Volumes declined 3% year-on-year to 80,664 tonnes in Q1, and the management refrained from providing a volume guidance for FY26. Revenue was largely flat at Rs.2,759 crore, while Ebitda fell 8% to Rs.656 crore. The 228 basis point (bps) drop in Ebitda margin to 23.8% was seen as a key disappointment. The company has guided for an operating margin of 24-25% for FY26.

A base tariff of 10% applies to Bal...