Mumbai, The latest Q1 earnings results from Balkrishna Industries and Whirlpool revealed sharply contrasting performances, with Balkrishna witnessing a steep fall in profit and Whirlpool showing signs of margin recovery despite revenue pressures.
Balkrishna Industries, the Mumbai-based off-highway tyre manufacturer, reported a 41 percent decline in standalone net profit for the quarter ended June 30, 2025. The profit stood at ₹362 crore, significantly lower than the ₹613 crore reported in the same quarter last year. The company attributed the drop to rising raw material costs, increased employee expenses, and elevated finance charges, which offset modest gains in revenue.
Total revenue from operations during the quarter rose 5 percent year-on-year to ₹2,838 crore. Despite the revenue increase, operating margins continued to face pressure. EBITDA stood at ₹703 crore, up only 1 percent from a year ago. The EBITDA margin for the quarter contracted by 115 basis points to 24.78 percent.
Market analysts expressed concern over the narrowing margins and lack of earnings momentum. Brokerage firm Nomura downgraded the stock to ‘Neutral’ from ‘Buy’ citing persistent cost headwinds. Shares of Balkrishna Industries fell over 10 percent on the BSE following the earnings announcement, with investor sentiment turning cautious.
The company’s full-year performance for FY25 showed a net profit of ₹1,628 crore, a 13 percent increase over the previous year. Annual revenue rose 13 percent to ₹10,615 crore, while EBITDA reached ₹2,682 crore with a margin of 25.26 percent. However, the Q1 numbers raised doubts about sustaining growth under current market conditions.
In contrast, Whirlpool Corporation, the American home appliance giant, reported an improvement in profitability for the quarter ended March 31, 2025, despite a significant decline in revenue.
Whirlpool’s net sales fell 19.4 percent year-on-year to $3.62 billion. The drop was largely due to the sale of its European business and currency impacts. However, organic sales, which exclude those factors, rose 2.2 percent, driven by higher demand in Asia and strong performance in the small appliances segment.
The company delivered a notable improvement in profitability. Ongoing EBIT margin increased to 5.9 percent from 4.3 percent in the year-ago quarter, while the GAAP net margin recovered to 2.0 percent from a negative 5.8 percent. This marks a return to profitability for Whirlpool after a period of losses in 2024.
Earnings per share on an ongoing basis came in at $1.70, just shy of expectations. GAAP EPS stood at $1.28, a significant turnaround from a loss of $4.72 in the previous year. Whirlpool’s stock gained nearly 3 percent in pre-market trading following the results, supported by investor optimism over the company’s cost-cutting initiatives and pricing strategy.
The company reaffirmed its full-year guidance, projecting ongoing EPS of approximately $10 and free cash flow between $500 million and $600 million. Executives cited continued focus on operational efficiency, product mix optimization, and pricing power as key to sustaining margin growth in coming quarters.
Whirlpool’s regional performance was mixed. North America saw improved margins due to cost actions, while Asia posted volume growth of 16 percent and a 240 basis point gain in margin. Latin America delivered stable results. Management expressed confidence that the U.S. manufacturing footprint and reduced European exposure would help stabilize earnings further.
As one company battles inflationary pressures and operational headwinds, the other is navigating global challenges through strategic adjustments and regional resilience. The contrasting outcomes highlight the ongoing volatility in global markets and the importance of margin discipline in sustaining investor confidence.
The Q1 earnings reports from Balkrishna and Whirlpool serve as a reminder of how cost control and operational efficiency continue to drive performance across sectors, particularly in a year marked by inflation, interest rate uncertainty, and shifting consumer demand.
Both companies will face critical tests in the upcoming quarters as macroeconomic risks persist and competition intensifies.
