Bhansali Engineering Polymers Ltd

Bhansali Engineering Polymers Ltd: Closure of Trading Window

Tax penalty order

• Nature of order: Penalty under Section 270A for AY 2018-19 for claimed R&D deductions.
• Penalty amount: Rs 79.66 lakh.
• Date of receipt: 16 September 2026.
• Impact: No material impact on financial position or operations.
• Addressing path: Company to appeal before Hon'ble CIT Appeals, NFAC within timelines.
• Status: Appealable; evaluating merits.

Meeting Details

• One-on-one in-person meeting with KRIIS Portfolio Pvt. Ltd. on Sep 10, 2026.

Participants

• Investor: KRIIS Portfolio Pvt. Ltd.

Purpose

• Analyst/Investors meet.

Business overview

• India’s leading ABS and Styrenic resins producer with two plants at Abu Road and Satnoor.
• JV with Nippon A&L Inc. provides technology access and high-value specialty polymers.
• Capex-driven capacity expansion to 100,000 MTPA targeted by Sep 2026.
• Debt-free balance sheet funded by internal accruals for growth.

Operational highlights

• Q1 FY27 revenue ₹472.2 crore, up 53.3% YoY.
• EBITDA ₹92.3 crore; margin 19.2%.
• PAT ₹65.6 crore; margin 13.6%.
• Capacity expansion 75,000 to 100,000 MTPA; Sep 2026 commissioning.
• Capex ~₹200 crore funded via internal accruals.
• R&D DSIR-recognized; 17 new grades; 20 products transitioned to production.
• Backward integration: in-house SAN and HRG; SAN 52,000 MTPA; ABS 75,000 MTPA.
• 1,500+ color portfolio; 112 color grades; licensed Nippon A&L color tech.

Investment rationale / Moats

• JV with Nippon A&L enables proprietary tech and high-value polymers.
• Debt-free balance sheet with positive cash flows supports self-funded growth.
• Integrated manufacturing and high utilization reduce costs; margin resilience.

Industry outlook

• Global ABS demand growth led by appliances and automotive.
• Domestic market substituting imports; policy protection aids local producers.
• EV adoption accelerates demand for lightweight specialty polymers.

Select financial information

• Revenue FY24–FY26: ₹1,221.7–₹1,276.0 cr.
• EBITDA FY24–FY26: ₹251.5–₹255.2 cr; margins ~19.4–19.9%.
• PAT FY24–FY26: ₹179.4–₹180.2 cr; margins ~12.5–13.7%.
• End-FY26 cash & equivalents ₹386.8 cr; debt-free balance sheet.

Governance & leadership

• MD: B. M. Bhansali; JMD & CFO: Jayesh B. Bhansali.
• Independent Directors: Taruna N. Kumbhar, Rohinton B. Anklesaria, Firdaus N. Pavri.
• Company Secretary: Ashwin M Patel; governance and compliance emphasis.

Q1 FY27 earnings highlights

• Total income ₹481.9 Cr, up 50.9% YoY.
• EBITDA ₹92.3 Cr, up 44.5%; EBITDA margin 19.2%.
• PAT ₹65.6 Cr, up 42.9%; PAT margin 13.6%.
• Capex ~₹200 Cr funded via internal accruals; debt-free balance sheet.
• Board declares first interim dividend; cash outlay ~₹24.9 Cr.

Capex & balance sheet

• Capex of ~₹200 Cr fully funded by internal accruals.
• Debt-free balance sheet maintained post-dividend.

Capacity expansion timeline

• Debottlenecking to raise capacity to 100,000 MTPA from 75,000 MTPA.
• Target commissioning September 2026; optimal utilization in FY28.

Strategic impact

• Strengthens positioning as low-cost ABS producer amid rising domestic demand.
• Aims to reduce imports; India’s ABS import share 30-40%.
• Supports higher-margin specialty and colour-grade product mix.

Management outlook

• Cites resilience, cost leadership, disciplined capital allocation, and strong cash generation.

Financial Highlights

• Total Income ₹341.6 Cr in Q1 FY27, up 8.7% YoY.
• EBITDA ₹74.3 Cr; margin 21.8% (up 50 bps).
• PAT ₹51.6 Cr; margin 15.1% (up from 14.9%).

Dividend & Capital Allocation

• First interim dividend ₹24.9 Cr declared for Q1 FY27.

Capex & Capacity Expansion

• Debottlenecking Abu Road: 75k → 100k MTPA capacity.
• Capex ₹200 Cr; 100% funded via internal accruals; debt-free balance sheet.
• Target commissioning Sep 2026; FY28 optimal utilization.

Operational Outlook

• Revenue growth driven by higher realizations and cost efficiencies; margin expansion.
• Company remains debt-free with strong cash position.

Financial results approved

• Approved unaudited standalone and consolidated results for Q1 FY2026-27 (quarter ended 30 June 2026).
• Limited Review Report by Azad Jain & Co. noted.

Dividend declaration and payout

• Declared 1st interim dividend of Re 1 per share.
• Record date fixed as 23 July 2026; payout by 16 August 2026.
• Dividend is subject to tax deduction at source.

Meeting Details

• Board meeting scheduled for 18 July 2026; time and venue not disclosed.

Key Agenda Items

• Approve unaudited standalone and consolidated financial results for quarter ended 30 June 2026.
• Declare 1st Interim Dividend for FY 2026-27, if any.

Other Notes

• Trading window closed from 1 July 2026; opens on 21 July 2026.

Bhansali Engineering Polymers Limited: Trading window closed from Wednesday, 1 July 2026 up to 48 hours after the declaration of Un-Audited Financial Results for the quarter ended 30 June 2026.