Birlanu (formerly HIL Limited), a leading provider of home and building solutions, has reported a challenging first quarter, facing headwinds in demand and pricing across multiple product categories.

Financial Performance

The company's consolidated revenue for Q1 stood at ₹1,052.00 crore, marking a 4.9% decrease compared to the same period last year. This decline was primarily attributed to weak demand, early onset of monsoon, pressure on input prices, and excess capacity across most product categories.

Birlanu's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant drop to ₹32.00 crore, down from ₹74.00 crore in the corresponding quarter of the previous year. The company reported a net loss of ₹25.00 crore for the quarter, in contrast to a profit of ₹5.00 crore in the same period last year.

Segment Performance

The company experienced mixed results across its various segments:

• Roofs, Pipes, and Floors: These segments faced de-growth, impacting overall revenue.
• Construction Chemicals: Showed strong growth of 37% year-on-year.
• Walls: Registered a modest growth of 2%, driven by strong momentum in Panels and Boards business.

Price declines of 2-6% in Roofs and Walls segments further impacted operating margins.

Parador Subsidiary Performance

Birlanu's Parador subsidiary, despite facing a challenging market, showed signs of improvement:

• Revenue declined to ₹304.00 crore
• Operating profits improved to ₹5.00 crore, up from a loss of ₹2.00 crore in the previous year

Market Challenges and Industry Trends

The company highlighted several industry-wide challenges:

• Muted traditional high season for the Roofs segment, with an estimated industry de-growth of ~1.2%
• PVC resin prices continued their downward trend, being 15% lower compared to last year
• Early rains reduced construction activity, impacting demand for Walls and Pipes
• Subdued government spending in key segments

Future Outlook and Initiatives

Despite the challenging quarter, Birlanu remains focused on future growth and efficiency:

• Progressing on a new OPVC facility in Patna
• Embarking on an ambitious greenfield project in Andhra Pradesh for Designer Boards and other products
• Planning to launch innovative products across all segments in the coming months
• Continuing to exercise discipline on efficiency and value levers

Management Commentary

Akshat Seth, MD & CEO of Birlanu, commented on the results: "Q1 has been a testing quarter for Birlanu, as it has been for the industry both in India and in our global markets. We remain cautious of the near-term external outlook and will continue to exercise discipline on efficiency and value levers."

Seth also highlighted the company's recent rebranding efforts: "The recent re-branding has energized our efforts in the marketplace, and we will further build on that momentum this year."

As Birlanu navigates through these challenging market conditions, the company remains committed to innovation, operational efficiency, and strategic growth initiatives to improve its performance in the coming quarters.

Birlanu , formerly known as HIL Limited, has announced significant developments following its board meeting held on August 4, 2025. The company's board of directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, and gave the green light for a strategic expansion project.

Financial Results Approval

The board reviewed and approved the unaudited financial statements for Q1 of the fiscal year 2025-26. These results, both standalone and consolidated, have been subject to a limited review by the company's statutory auditors, M/s. B S R and Co, Chartered Accountants.

New Fibre Cement Board Plant

In a move to bolster its manufacturing capabilities, Birlanu has approved the establishment of a new Fibre Cement Board plant. The facility will be located near Krishnapatnam port in the Nellore district of Andhra Pradesh.

Key details of the expansion project include:

• Production Capacity: 72,000 metric tons per annum in Phase I
• Investment: ₹127.00 crore
• Scope: Plant setup, infrastructure development, and land acquisition costs
• Timeline: Expected completion within eighteen months
• Financing: Combination of internal accruals and borrowings

Strategic Rationale

The company's decision to set up this new plant aligns with its strategic objectives:

1. Scaling operations
2. Expanding premium product lines
3. Enhancing market accessibility
4. Achieving a competitive advantage in the industry

Corporate Governance

The board meeting, which commenced at 12:00 noon IST and concluded at 1:30 pm IST, adhered to the regulations set by the Securities and Exchange Board of India (SEBI). The company has made the necessary disclosures in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Birlanu continues to demonstrate its commitment to growth and transparency, as evidenced by these recent developments and timely disclosures to the stock exchanges.