BMW Industries reports Q2 earnings, faces temporary challenges, projects strong growth

BMW Industries Limited reported its Q2 FY '26 earnings, with revenue at INR144.9 crores and operating EBITDA at INR36.9 crores, a 4.8% year-on-year increase. This resulted in an operating EBITDA margin of 25.5%. Profit after tax was INR15.2 crores, with a PAT margin of 10.3%. The company noted that performance was impacted by temporary challenges in the CGL and TMT segments, with TMT volumes affected by raw material constraints and pending contract renewals, which are in final stages.

To optimize capacity utilization amid raw material shortages, BMW Industries initiated proprietary production and sales of galvanized coils. The Phase 1 Greenfield project at Bokaro remains on track, with commercial operations for color-coated products expected to begin in Q1 FY '27. The company projects consolidated revenue to grow at a CAGR of approximately 75% over the next three fiscals, driven by the Bokaro project and existing business growth. Operating EBITDA is expected to grow at a CAGR of 45% over the same period, with a target ROCE of over 18% by FY '28.

The company's external credit rating was reaffirmed at 'A' by India Ratings and Research, reflecting a strong balance sheet. The total capex for the Bokaro project is projected to be around INR800 crores by FY '27 end, funded by a mix of debt and equity, with INR500 crores allocated for term loans. While revenues have been flat for the past five quarters, a significant uptick is anticipated from Q1 FY '27 due to new product integration.