BMW Industries Limited , a leading steel processing company, reported a challenging first quarter, with revenue declining 14.4% year-on-year to Rs 148.70 crores. The company attributed this drop primarily to temporary shutdowns by key customers, which impacted volumes across its Cold Rolled Mill (CRM), rolling mill, and tube segments.

Financial Performance

Despite the revenue setback, BMW Industries maintained a relatively strong operating EBITDA margin of 21.2%, though this represented a contraction from 24.4% in the same quarter of the previous year. The company's profit after tax stood at Rs 15.20 crores, translating to a 9.9% margin.

Operational Highlights

During the quarter, BMW Industries made significant strides in expanding its manufacturing capabilities:

• Commissioned two additional tube mills at the Jamshedpur facility
• Installed a 1.28-megawatt rooftop solar installation at Jamshedpur
• Increased tube manufacturing capacity by 60,000 metric tons annually, bringing the total to approximately 600,000 metric tons per annum across all units

Bokaro Greenfield Expansion

The company reported that Phase-1 of its Bokaro Greenfield expansion remains on schedule. BMW Industries expects to commence revenue generation from the color-coated sheet plant by Q4, marking a significant milestone in its growth strategy.

Future Outlook

Management provided an optimistic medium-term guidance, projecting:

• 75% revenue CAGR over the next three fiscal years, driven by the Bokaro project
• 45% CAGR in operating EBITDA over the same period
• Operating EBITDA margins expected to stabilize at about 11% by FY28
• PAT growth at a robust 40% CAGR over the next three years
• PAT margin anticipated to stabilize at about 5% by FY28
• Return on capital employed projected to exceed 18%

Order Book

BMW Industries highlighted two major contracts from Tata Steel:

1. A Rs 365.00 crore contract for the Tubes division, extended until H1 FY25
2. A Rs 1,700.00 crore contract for CGL-3 (Continuous Galvanizing Line)

Debt Position

The company's net debt increased from Rs 120.00 crores in March to Rs 160.00 crores in June. However, management assured that the debt-equity ratio is expected to remain below 2:1 even at peak levels during the expansion phase.

Harsh Bansal, Managing Director of BMW Industries, commented on the results: "Despite short-term challenges, our fundamentals remain strong, and we are well-positioned to deliver sustained profitable growth. We continue to execute with discipline and strategic clarity, focusing on long-term value creation."

As BMW Industries navigates through this transitional phase, the company remains confident in its ability to capitalize on the growing demand for value-added steel products in India, supported by its strategic expansions and operational enhancements.

BMW Industries Limited , a leading steel processing company, has announced its financial results for the first quarter of the fiscal year 2026 (Q1 FY26), revealing a decline in revenue and profitability compared to the same period last year.

Revenue and Profit Performance

The company reported a consolidated revenue from operations of ₹148.69 crore for Q1 FY26, marking a 14.4% decrease from ₹173.65 crore in Q1 FY25. This decline was primarily attributed to a one-time, 45-day shutdown undertaken by a key customer, which resulted in a temporary volume drop, particularly in the Cold Rolling Mill (CRM) and Rolling Mill segments.

BMW Industries' consolidated net profit for the quarter stood at ₹15.20 crore, down 32% from ₹22.34 crore in the corresponding quarter of the previous year. The company's profit margins were squeezed, with the Profit After Tax (PAT) margin decreasing to 9.9% in Q1 FY26 from 12.7% in Q1 FY25.

Operational Performance

The company's Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 FY26 was ₹31.45 crore, compared to ₹42.39 crore in the same quarter last year, representing a 25.8% year-on-year decline. The EBITDA margin contracted by 326 basis points to 21.15% from 24.41% in Q1 FY25, primarily due to transitory fixed-cost absorption on a lower revenue base.

Segment-wise Performance

The CRM Complex and Rolling Mill segments were the most affected by the customer shutdown, while the Pipes and Tubes segment showed growth.

Capacity Expansion and Strategic Initiatives

Despite the temporary setback, BMW Industries continued to focus on capacity expansion and strategic initiatives:

1. The company successfully commissioned two additional Tube Mills at its Jamshedpur facility, enhancing its Tube manufacturing capacity by 60,000 MT to approximately 6,00,000 MT.
2. A 1.28 MW Rooftop Solar installation was completed at the Jamshedpur facility, reinforcing the company's commitment to sustainable operations.
3. The company remains on track with its Greenfield expansion, with Phase 1 progressing as planned. Revenue generation from the Colour-Coated Sheet segment is expected to commence by Q4 FY26.

Management Commentary

Ram Gopal Bansal, Chairman of BMW Industries Limited, commented on the results: "Despite the temporary impact, we believe the underlying fundamentals of our business remain robust. With customer operations stabilizing, we anticipate a recovery in volumes over the coming quarters. We remain firmly on course with our blended growth strategy, which leverages both our proprietary capacities and the upcoming Greenfield expansion."

Financial Position

As of June 2025, the company's net debt stood at ₹164.38 crore, up from ₹120.77 crore in March 2025. The Net Debt to Equity ratio increased to 0.22 from 0.16 over the same period.

Outlook

While the quarter presented challenges due to the temporary customer shutdown, BMW Industries remains optimistic about its future prospects. The company's focus on capacity expansion, operational resilience, and long-term value creation through investments in capacity and capability is expected to drive growth in the coming quarters.

Investors and analysts will be closely watching the company's performance in the subsequent quarters to assess the pace of recovery and the impact of its strategic initiatives on overall financial performance.