Barez's radial tyres became 21% pricier on 19 October, but the company says costs are up more than 55%, and BARZ did not trade today (Monday 19 October 2026)

Barez Industrial Group (BARZ) raised the selling price of its radial tyres by an average of 21% from 19 October 2026 (27 Mehr 1405): each tyre went from 4,633,140 to 5,606,099 rials. In the same Group A disclosure the company says the cost of its production inputs is up more than 55%, and the symbol did not trade on 19 October. The question is whether the price rise reaches profit or costs absorb it.

Background

BARZ trades on the second market of the Tehran Stock Exchange in the rubber and plastics group, and its fiscal year ends on 20 March. According to the Codal disclosure (tracing number 1613905, corrected version of 19 October), approval for the new price was received on 18 October from "the relevant authorities" and applies from 19 October. Radial tyres brought in 118,727 billion rials of sales last fiscal year, which the same disclosure puts at 64% of company revenue. All financial figures below are the standalone company's, in billions of rials unless another unit is stated.

The numbers: price, volume and margin

The monthly activity reports show the average domestic radial price already climbing over the last three months, so the 19 October increase sits on top of that path.

If the same 3,788,151 tyres of Shahrivar sold at the new price, the difference is 972,959 rials per tyre and monthly revenue rises by about 3,686 billion rials (Sahmino arithmetic, volume held flat and no cost or demand effect; a scenario, not recorded sales). For scale, average monthly net profit in the spring quarter was 2,503 billion rials (7,510 divided by 3).

Gross margin in spring 2026 was 24.1%, against 22.8% a year earlier and 17.9% for the whole of fiscal 2025 (audited, 32,394 divided by 180,909). Costs rose in step with sales in the spring quarter and margin did not shrink: cost of sales grew 51% against revenue's 54%. The tracing number of these statements is 1560201.

Drivers

Six-month sales. Net sales (domestic and export) for the six months to 22 September 2026 were 124,508 billion rials, against 87,656 billion a year earlier, up 42.0%. Subtracting spring revenue (58,688) leaves 65,820 billion for July to September, 12.1% above spring. Monthly radial volume also recovered, from 2.15 million tyres in July to 3.79 million in September.

Dividend. The assembly of 2 July 2026 approved a cash dividend of 580 rials per share, a 68.9% payout of the 842-rial earnings per share (tracing number 1560206). On the 18 October close of 8,120 rials that is about 7.1%, a record of past payout and not a promise for next year.

Peers. The hike is not unique to BARZ. Kavir Tire (KVRZ) lifted its average price 23.4% from 17 October (3,960,759 to 4,889,057 rials, tracing number 1612273), Yazd Tire (YZTZ) 23% on average (tracing number 1611838) and Arta Wheel Tire (ARTZ) 20% (tracing number 1612205). BARZ's 21% sits in the middle.

Outlook and counter-evidence

Cost. The company calls input, wage and other cost growth "more than 55%" without stating the base period, so we do not compare it directly with 21%. What can be said is that the new price is about 49% above the spring average radial price (3,752,310 rials). Margin is not confirmed until the six-month statements, which are not yet in our data.

Volume. Domestic radial tyres sold in the first six months of fiscal 2026 numbered 19,095,118, against 29,491,674 a year earlier, 35.3% fewer. Revenue growth is carried by price (average price 4,208,002 rials against 1,847,429), and if the new increase loses buyers, it dilutes the revenue effect.

Debt and register. Finance costs rose 178% in spring and interest-bearing debt is 38,381 billion rials (0.71 times equity). Free float is 17%, and at the 2 July assembly two large holders with 50.28% and 31.79% were present. In the three sessions to 18 October, individual investors were net sellers (28.5, 38.2 and 60.1 billion rials on 14, 17 and 18 October) while institutions bought.

Valuation and price. The exchange P/E (EPS 953 rials) at the 8,120-rial close of 18 October is 8.5, against a sector multiple of 8.92 dated 17 October, 4.5% below the sector (base: the sector figure). Sahmino's overnight calculation puts KVRZ at 5.89, Yasa (YASA) at 6.15 and Tair (TAIR) at 6.99, so BARZ is not the cheapest tyre maker. Its adjusted three-month return is 50.4%, against 75.4% for TAIR, 105.4% for YASA and 191.9% for YZTZ. The price fell three sessions from 8,820 rials (13 October) to 8,120 rials (18 October), 7.9% (base 8,820). At 17:32 on 19 October the exchange's official data showed the symbol as "prohibited-halted" with no trades; the feed does not give a reason and we do not supply one.

Sahmino's call. From the 18 October 2026 session the Sahmino desk has a buy on BARZ: reference price 8,120 rials, target about 9,330, invalidation about 8,010 and a 20-session horizon. The 8,120 close is 13.0% below the target (base 9,330) and 1.4% above invalidation (base 8,010); that small gap means a normal drop on reopening could invalidate the call. This type of call reached its target 474 times in a sample of 731. The desk's whole settled record is weaker: of 2,034 stances, 913 (44.9%) reached target and 1,008 were invalidated. The range-breakout signal of 10 October (reference 8,670 rials) carries a 74.2% target chance, but the close is now 6.3% below that reference (base 8,670).

Conclusion

With volume held flat, the 21% increase lifts radial revenue; net profit depends on volume, cost and keeping gross margin above fiscal 2025's 17.9%, which the six-month statements have not yet confirmed. Our reading, quoting the Sahmino desk's call from the 18 October 2026 session: "BARZ reaches about 9,330 rials within 20 sessions if its daily close stays above about 8,010 rials." A close below about 8,010 rials invalidates it.

What to follow

• The six-month statements to 22 September 2026: compare gross margin with spring's 24.1% and fiscal 2025's 17.9%.
• The reopening and first closes against 8,010 rials, and the October activity report: the average radial price should head toward 5.6 million rials, and tyres sold should be weighed against September's 3.79 million.
• Check the target of about 9,330 and invalidation of about 8,010 rials beside the latest price on BARZ's Sahmino page; the PGOP case study shows the same target-and-invalidation format.
• Open KVRZ beside BARZ to compare tyre makers; the FSAZ example shows how to compare a P/E with its sector.