BMW Industries Ltd

Financial Performance

• Q1 FY27 operating income INR 166.0 cr, up 11.6% YoY.
• Gross profit INR 112.7 cr; gross margin 67.9% (+536 bps YoY).
• PAT INR 19.1 cr; PAT margin 10.8% (+92 bps).
• ROCE 9.5%, ROE 9.4% annualized as of 30 June 2026.
• Net debt INR 468.9 cr; net debt-to-equity 0.57x.
• Bokaro long-term borrowings INR 202.4 cr.
• Internal accruals INR 139.2 cr; total capital deployed INR 341.6 cr.
• Color-coated segment commissioned this quarter; ramp-up over six quarters to FY28.
• Guidance: 70–75% consolidated revenue CAGR FY25–FY28; EBITDA 40–45%; PAT 35–40%.
• EBITDA margin 12–13%; PAT margin 5–6% by FY28.

Operations & Capex

• Rolling mill utilization annualized ~83.5%; pipes and tubes ~40.1% with production uptick.
• Bokaro downstream plant: commissioning to begin this quarter; 1.5 lakh ton line.
• Bokaro capex: capital drawdown reflected; commissioning from Q2 FY27; ROCE to improve.
• Exports: no exports planned for Bokaro; domestic focus; UK exports not planned.

Guidance & Outlook

• Continued 70–75% consolidated revenue CAGR FY25–FY28; ramp-up of Bokaro.
• EBITDA CAGR 40–45%; PAT CAGR 35–40% through FY28.
• EBITDA margin 12–13%; PAT margin 5–6% by FY28.
• Balanced model: traditional conversion plus proprietary input-supply chain.

Q&A Highlights

• FY27 numbers not commented; guidance remains on track for FY28.
• Color-coated commissioning this quarter; ramp over six quarters to FY28.
• Bokaro capitalization underway; hot trials; capex booked in Q2 FY27.
• Bokaro 1.5 lakh ton line; ramp in 3–4 quarters.
• Receivables from prior client realized in Q1.
• Domestic focus; no Bokaro exports planned; UK exports not planned.

Risks & Watchpoints

• Ramping Bokaro; execution risk during commissioning and scale-up.
• Sourcing and input costs; need for price-variationMechanisms with customers.
• Domestic demand trajectory; dependence on government infra spend.
• Quality certifications post-commissioning; vendor quality risk in new capacity.

AGM details

• 44th AGM scheduled for 12 September 2026 at 11:30 AM via VC/OAVM.
• Annual Report and AGM notice available on BMW site and stock exchange portals.
• E-voting cut-off date set at 5 September 2026.
• Remote e-voting period from 9 to 11 September 2026 (9:00 AM–5:00 PM).

Shareholder data updates

• Shareholders must update PAN, bank details, mobile, email, and address with depository participants.
• Physical-shareholders to submit ISR-1/ISR-2 or SH forms to ABS Consultant.

Transfer window

• Special transfer window for pre-2019 physical securities runs Feb 5, 2026 to Feb 4, 2027.
• Relodged transfers will be issued only in demat mode with a one-year lock-in.
• Company website communicates window details and process.

Financial performance

• Consolidated revenue from operations: INR 66,523 Lakhs, up 5.8% YoY.
• EBITDA: INR 17,993 Lakhs, up 13.7% YoY.
• PAT: INR 8,077.01 Lakhs, up 7.9% YoY.
• EBITDA margin: 27.05%; PAT margin: 12.14%.
• EPS: INR 3.59; RoCE: 12.03%.
• Final dividend proposed: Re 0.43 per share (43%).

Operational mix

• CRM Complex revenue: 40,461 Lakhs; Pipes 8,409; Rolling 4,685; Logistics 4,156; Others 8,811.
• Value-added products accounted for 80.5% of revenues in FY26.
• CRM Complex contributed the majority share of value-added product revenue.
• Domestic revenue: 66,523; Export: 0; mix remains domestic-centric.

Capex and Bokaro transformation

• Bokaro downstream complex: INR 803 Crore capex; financial closure achieved in FY25-26.
• Commissioning expected in Q2 FY2026-27; revenue contribution to follow.
• Capacity target: around 0.5 million tonnes per annum of value-added flat steel.
• Strategic aim: diversify revenue and strengthen margins via downstream integration.

Strategic shift and go-to-market

• Transition from conversion-led to integrated, market-facing value-added platform.
• Go-to-market: distributor-led model with multi-product bundles.
• Integrated logistics and portfolio management to improve pricing power and customer reach.

Operational efficiency and ESG

• CRM utilization: 71%; Rolling 41.7%; Pipes 34.2% utilization.
• 5 MW rooftop solar commissioned; LED adoption across facilities.
• Zero Liquid Discharge (ZLD) and intensive energy efficiency measures.

Capital structure and liquidity

• Consolidated borrowings: 34,198 Lakhs; gearing 0.30.
• Net worth: INR 804 Crore; cash flow from operations: 8,317 Lakhs.
• Capital expenditure to support Bokaro expansion; funded via internal accruals and borrowings.

Governance and risk

• Board strengthened with new Independent Directors; 6 Board Meetings in FY25-26.
• Finance Committee renamed to Finance & Executive Committee; audit and risk oversight enhanced.
• CSR spend: INR 56.38 Lakhs; 2% of average net profit; carry-forward exists.

Outlook and risks

• FY2026-27: Bokaro commissioning accelerates scale and revenues.
• Group targets revenue around INR 3,200 Crore within two years of Bokaro ramp-up.
• Macro risks include geopolitical, energy costs, and global demand volatility.

AGM Details

• Date and time: 12 September 2026 at 11:30 IST.
• Mode: VC/OAVM.
• Record date for dividend: 5 September 2026.
• Book closure: 6–12 September 2026.

Key Resolutions

• Item 1 (Ordinary): Adoption of standalone financial statements.
• Item 1 (Ordinary): Adoption of consolidated financial statements.
• Item 2 (Ordinary): Final dividend of Re 0.43 per equity share.
• Item 3 (Ordinary): Re-appointment of Vivek Kumar Bansal as Director.
• Item 4 (Ordinary): Ratification of remuneration for Cost Auditor for FY ending 31 Mar 2027.
• Item 5 (Special): Continuation of Joginder Pal Dua as Non-Executive Independent Director beyond 75 until Aug 28, 2030.
• Item 6 (Special): Reclassification of authorised share capital and MOA amendment.
• Item 7 (Special): Alter MOA and adopt new MOA as per Act.
• Item 8 (Special): Alter AOA and adopt new AOA as per Act.

Dividend

• Final dividend proposed by Board for FY 2025-26: ₹0.43 per equity share.

Directors

• Re-appointment of Vivek Kumar Bansal (MD) as Director.
• Remuneration sought for Vivek Kumar Bansal: ₹1,20,00,000 per annum.

Auditors

• Cost Auditor remuneration: ₹1,00,000 for FY ending 31 Mar 2027.
• Auditor: M/s Sohan Lal Jalan & Associates re-appointed for cost audit.

Related Party Transactions

• No material related party transactions disclosed.

Other Approvals

• Special resolutions: Reclassification of authorised share capital and MOA changes.
• Adoption of new MOA under Schedule I Tables A/F (Special).
• Adoption of new AOA under Schedule I Table F (Special).

Meeting Details

• Date and time: August 17, 2026 at 15:30 IST.
• Event: Investors’/Analyst Meet (earnings call) for Q1 FY2026.

Participants

• Key company participants from management not disclosed.

Purpose

• Discuss unaudited standalone and consolidated Q1 FY2026 results.

Additional Notes

• Audio recording available on the company's website.

Business overview

• Downstream steel processor expanding from legacy conversion to value-added coated steel products.
• Greenfield Bokaro downstream complex advancing; revenue generation expected in Q2 FY27.
• Integrated value chain with direct input sourcing and finished-product supply model.

Operational highlights

• Q1 FY27 revenue ₹16,600 lakh; YoY growth 11.6%.
• EBITDA ₹3,369 lakh; margin 20.3%.
• PAT ₹1,912 lakh; margin 10.8%.
• Rolling Mill utilization 83.5% annualized; Pipes & Tubes 40.1%.
• CGL Complex 1 capacity 1,014,000 MT.
• Rolling Mill capacity 180,000 MT.
• Pipes & Tubes capacity 732,000 MT.
• Bokaro expansion capex ₹803 Cr; deployed ₹341.6 Cr as of 30 Jun 2026.
• Debt funding for Bokaro expansion ₹500 Cr from SBI/HDFC/Yes Bank consortium.
• PNG supply with Indian Oil for Bokaro facility.
• Revenue from Bokaro expected in Q2 FY27.

Financial performance

• Revenue from operations 16,600 lakh; YoY +11.6%.
• Operating EBITDA 3,369 lakh; margin 20.3%.
• PAT 1,912 lakh; margin 10.8%.
• EPS ₹0.85.
• QoQ: revenue down 20.8%; EBITDA down 41.6%; PAT down 42.3%.

Capital structure & liquidity

• Net debt/equity 0.57 as of 30 Jun 2026.
• Total Bokaro capex deployed ₹341.6 Cr; debt drawn ₹202.4 Cr.
• Internal accruals reinvested ₹139.2 Cr into Bokaro expansion.
• Debt funding for Bokaro expansion ₹500 Cr from SBI/HDFC/Yes Bank.

Strategic priorities & outlook

• Maximize Bokaro capacity; expand value-added offerings; diversify end-use customers.
• Revenue from Bokaro in Q2 FY27; disciplined capex and capital deployment.

Risks & mitigations

• Execution and funding risk for Bokaro expansion; mitigated by diversified funding and accruals.
• Demand volatility; mitigated by diversified product mix and integrated operations.

Governance & leadership

• Ram Gopal Bansal is Chairman; Harsh Bansal and Vivek Bansal are Managing Directors.
• Independent Directors: Monika Chand, Vijay Kumar Agarwal, Priti Todi, Joginder Pal Dua.
• CFO Vikram Kapur leads financial management and investor relations.

Financial highlights

• Q1 FY27 unaudited Total Income ₹17,668 lakh, up 15.1% YoY.
• EBITDA ₹4,437 lakh, margin 25.1%.
• PAT ₹1,912 lakh; PAT margin 10.8%.
• Diluted EPS ₹0.85.
• YoY growth: Total Income 15.1%, EBITDA 22.2%, PAT 25.8%.
• Rolling Mill utilisation 83.5%; Pipes & Tubes 40.1%.

Operational updates

• Greenfield Bokaro downstream complex progressing; revenue start expected in Q2 FY27.
• Expansion targets: utilize existing capacity and Bokaro downstream capacity.
• Integrated supply model to source inputs directly and supply finished products.

Outlook & strategic focus

• Trajectory expected to accelerate; improved operating leverage and margins.
• Focus on sustainable growth and prudent capital deployment.