Behari Lal Engineering Q1FY27 net profit up 24% to ₹191.94 million
- Net profit rose 24% YoY to ₹191.94 million in Q1FY27, driven by 18% revenue growth to ₹1,516.74 million
- EBITDA margin expanded to 19.6% from 18.8% YoY, supported by a 13.4% increase in sales volume to 22,095 MT
- High-value product share grew to 60.4% of revenue, boosting EBITDA per tonne to ₹13,457 from ₹11,495 in FY26
- Company reported its first quarter as a listed entity following an IPO subscribed 108.44x and listing on August 19, 2026
- Order book stands at ₹162 crore with capacity utilisation at 90.5%
*this image is generated using AI for illustrative purposes only.
The board of Behari Lal Engineering approved unaudited standalone financial results for the quarter ended June 30, 2026, reporting a net profit of ₹191.94 million. This represents a 24% increase compared to ₹154.22 million in the corresponding quarter of the previous year.
Revenue from operations rose 18% year-on-year to ₹1,516.74 million, up from ₹1,284.96 million in Q1FY26. The company also appointed M/s. Reecha Goel and Associates as its secretarial auditor for the financial year 2026-27.
Financial Performance
The firm’s total income stood at ₹1,538.48 million for the quarter, driven primarily by operational revenue which constituted over 98% of the top line. Other income declined significantly to ₹21.74 million from ₹72.53 million in the preceding quarter (Q4FY26), though it remained higher than the ₹12.44 million recorded in Q1FY25.
EBITDA for the quarter was reported at ₹297.3 million (including other income), translating to an EBITDA margin of 19.6%, up from 18.8% in Q1FY26. Operating EBITDA (excluding other income) stood at ₹275.6 million, with an operating margin of 18.2%, reflecting improved operational efficiency alongside revenue growth. Sales volume reached 22,095 MT, a 13.4% YoY increase, while capacity utilisation hit 90.5%.
| Metric | Q1FY27 | Q4FY26 | Q1FY26 |
|---|---|---|---|
| Revenue from Operations | ₹1,516.74 mn | ₹1,311.63 mn | ₹1,284.96 mn |
| Total Income | ₹1,538.48 mn | ₹1,384.16 mn | ₹1,297.40 mn |
| Total Expenses | ₹1,280.94 mn | ₹1,119.45 mn | ₹1,087.96 mn |
| Profit Before Tax | ₹257.54 mn | ₹264.71 mn | ₹209.44 mn |
| Net Profit | ₹191.94 mn | ₹213.86 mn | ₹154.22 mn |
Profit before tax was ₹257.54 million, slightly lower than the ₹264.71 million reported in the immediate prior quarter but up from ₹209.44 million in the same period last year. Total tax expense for the quarter was ₹65.60 million.
What the Numbers Show
While revenue growth of 18% YoY outpaced the 24% growth in net profit, the divergence is largely attributable to the composition of other income. In Q1FY26, other income contributed ₹12.44 million; in Q1FY27, it rose to ₹21.74 million. However, the sharp drop in other income from the previous quarter (₹72.53 million in Q4FY26) indicates that the current quarter’s profitability is more operationally grounded than the immediately preceding period, where non-operational gains played a larger role in the bottom line.
The expansion in EBITDA margin from 18.8% to 19.6% suggests that operating leverage is improving, driven by a shift towards high-value products. The share of high-value products (metal rolls, engineering castings, and specialty alloy grades) rose to 60.4% of revenue in Q1FY27, up from 55.7% in Q1FY26 and 57.8% in FY26. EBITDA per metric tonne increased to ₹13,457 from ₹11,495 in FY26, highlighting the impact of this mix upgrade.
Corporate Actions
The board meeting held on September 7, 2026, also focused on post-IPO compliance structures. The company listed its equity shares on the National Stock Exchange and BSE on August 19, 2026, following an initial public offering that included a fresh issue of 32,63,157 shares and an offer for sale of 73,20,001 shares at ₹285 per share. The IPO received an overall subscription of 108.44x.
Key governance updates include:
- Appointment of M/s. Reecha Goel and Associates as Secretarial Auditor for FY27.
- Submission of unaudited standalone results pursuant to Regulation 33 of SEBI Listing Regulations.
- Confirmation that these are the first quarterly results reported after the company’s public listing.
As of June 30, 2026, the order book stood at ₹162 crore, providing healthy revenue visibility. The company maintains a conservative balance sheet with a debt-to-equity ratio of 0.03x and cash balances of ₹52 crore.
Historical Stock Returns for Behari Lal Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.55% | +1.07% | -1.15% | +56.18% | +56.18% | +56.18% |
How sustainable is the current 90.5% capacity utilization rate, and does Behari Lal Engineering have immediate expansion plans to meet the demand indicated by its ₹162 crore order book?
Given the shift towards high-value products now comprising 60.4% of revenue, what specific market trends or customer segments are driving this mix upgrade, and how might this impact future EBITDA margins?
With a debt-to-equity ratio of just 0.03x and ₹52 crore in cash reserves, what is the company's strategic roadmap for deploying this capital, such as through M&A, capacity expansion, or shareholder returns?
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