BMW Industries Limited released the transcript of its earnings conference call held on January 30, 2026, providing detailed insights into the company's Q3FY26 performance and strategic initiatives. The call was hosted by Arihant Capital Markets Limited with Managing Director Harsh Bansal and CFO Vikram Kapur discussing the quarter's achievements and future outlook.

Financial Performance Highlights

The company reported strong quarterly performance with operating income reaching ₹162.16 crores in Q3FY26, representing 9.90% year-on-year growth and 11.90% quarter-on-quarter improvement. Operating EBITDA stood at ₹38.55 crores, up 6.80% year-on-year with an operating EBITDA margin of 23.80%.

For the nine-month period, operating income reached ₹455.73 crores with operating EBITDA of ₹106.90 crores, maintaining a margin of 23.50%. The company's balance sheet remains robust with net debt at ₹232.31 crores, resulting in a comfortable net debt-to-operating EBITDA ratio of 1.63x and net debt-to-equity of 0.30x.

Bokaro Greenfield Project Milestone

A significant development during the quarter was the achievement of financial closure for the Bokaro downstream steel complex. The company successfully secured ₹500 crores in long-term debt financing from a consortium led by State Bank of India, along with HDFC and YES Bank. This financing represents a key milestone as BMW Industries transitions from a conversion-based model to an integrated downstream steel processing business.

The Bokaro facility will produce a range of value-added products including galvanized, galvalume, ZAM (zinc-aluminum-magnesium), and color-coated steel products. Management confirmed the project remains on track for Phase-1 commissioning by April 2026, with all production lines expected to be operational between Q1FY27 and Q4FY27.

Operational Performance and Segment Updates

The CRM (Cold Rolling Mill) segment witnessed a strong rebound with dispatches increasing 18.10% sequentially, supported by improved off-take, firm pricing, and better demand conditions. The TMT contract with Tata Steel has been renewed for 12 months until November 2026, with volumes stabilizing albeit at slightly lower levels.

In the pipes and tubes segment, the company is working toward achieving optimal capacity utilization of 60%-65%, with current installed capacity being underutilized due to the ramp-up phase of new facilities. Management expressed confidence in doubling current utilization levels over the next two years.

Medium-Term Growth Guidance

Management reaffirmed ambitious growth targets, projecting consolidated revenue to grow at approximately 75% CAGR over the next three fiscal years, driven by phased commissioning of the Bokaro project and organic growth in existing verticals. Operating EBITDA is expected to grow at 45% CAGR over the same period.

As of December 31, 2025, the company reported ROCE of 10.10% and ROE of 8.50%, reflecting the ongoing capital deployment phase ahead of the Bokaro project commissioning.

Strategic Positioning and Market Outlook

Management emphasized that the transition to an integrated downstream processing model will naturally evolve the company's cost structure, with steel input forming approximately 80% of revenue. While this will moderate consolidated operating EBITDA margins compared to the historically high mid-20s margins of the conversion business, the strategy focuses on scaling volumes, deepening value chain integration, and enhancing stakeholder value.

The company continues building proprietary downstream bridges and establishing early-stage sales networks, positioning for smooth integration when Bokaro operations commence. Management highlighted the strategic location advantage, with proximity to major steel producers including Bokaro Steel Plant, Tata Steel Jamshedpur, and the Odisha steel ecosystem providing multiple raw material sourcing options.

BMW Industries Limited has successfully completed financial closure for its ambitious Greenfield Downstream Steel Complex project, securing ₹500 crore in debt funding from a consortium of leading banks. The financing arrangement, disclosed under Regulation 30 of SEBI regulations, represents a significant milestone in the company's expansion strategy for downstream steel processing capabilities.

Project Financing Details

The debt funding has been arranged through a consortium led by State Bank of India, with participation from HDFC Bank Limited and Yes Bank Limited. This structured financing approach provides the company with long-term capital deployment flexibility aligned with project execution timelines.

Production Capacity and Infrastructure

The Greenfield project at Bokaro will establish substantial downstream steel processing capabilities across multiple product categories. The facility is designed to serve the growing demand for value-added steel products in the domestic market while positioning the company for export opportunities.

The company already owns the industrial land required for the project, providing operational advantages and cost efficiencies in project execution. The facility's strategic location approximately 300 kilometres from Haldia and Kolkata ports offers significant logistical benefits for both raw material sourcing and finished product distribution.

Strategic Market Positioning

The Bokaro facility's proximity to major ports positions BMW Industries Limited to access global markets effectively, supporting both domestic supply commitments and export expansion opportunities. This geographic advantage aligns with the company's broader strategy to strengthen its position in the downstream steel value chain.

Managing Director Harsh Bansal emphasized the importance of structured financing for capital-intensive steel operations, stating that the consortium arrangement provides long-term project financing visibility while maintaining financial discipline. He highlighted the company's focus on regulatory compliance and transparency as a listed entity pursuing growth opportunities in downstream steel processing.

Company Background and Operations

BMW Industries Limited operates as a leading manufacturer in the steel services sector, with operations spanning multiple segments of the steel value chain. Incorporated in 1981, the company maintains its registered office in Kolkata, West Bengal, with manufacturing units across West Bengal and Jharkhand.

The company's product portfolio includes HRPO Coils, CR Coils, GP Coils, GC Sheets, MS and GI pipes, and TMT rebars, serving marquee steel players across India. BMW Industries Limited also maintains a joint venture with Steel Authority of India Limited (SAIL), with operations at Bokaro, further strengthening its presence in the region.

Project Timeline and Execution

The Greenfield Downstream Steel Complex is scheduled to commence phased operations in early FY27, with the funding structure designed to support calibrated capital deployment throughout the project execution phase. This approach ensures alignment between financing availability and operational milestones while maintaining balance sheet discipline.