BMW Industries Q2 profit rises 43% as other income jumps

BMW Industries Limited reported Q2 FY27 profit after tax of Rs 21.62 crore, up 42.7% year on year, while operating EBITDA declined 5.7% to Rs 34.81 crore and its operating EBITDA margin fell 630 basis points to 19.2%. Other income rose 573.4% to Rs 13.92 crore during the quarter.

Why did BMW Industries profit rise despite lower operating EBITDA?

BMW Industries reported higher Q2 FY27 profit alongside a sharp increase in other income, while operating EBITDA declined. Profit after tax, attributable to owners of the company, rose from Rs 15.15 crore in Q2 FY26 to Rs 21.62 crore in Q2 FY27, whereas operating EBITDA fell from Rs 36.91 crore to Rs 34.81 crore despite revenue from operations increasing 25.3%.

Other income increased by Rs 11.85 crore year on year, reaching Rs 13.92 crore in Q2 FY27 from Rs 2.07 crore in Q2 FY26. Finance costs increased 24.2% to Rs 5.97 crore and depreciation rose 3.5% to Rs 13.96 crore, but reported PAT margin increased 76 basis points to 11.1% from 10.3%.

Why did BMW Industries operating margin contract in Q2 FY27?

BMW Industries’ operating EBITDA margin contracted because operating EBITDA fell while revenue expanded. The margin was 19.2% in Q2 FY27, compared with 25.5% in Q2 FY26, a reduction of 630 basis points. Revenue from operations increased by Rs 36.61 crore to Rs 181.50 crore, while operating EBITDA declined by Rs 2.10 crore.

The presentation does not provide a line-by-line explanation for the margin movement. It reports that Q2 FY27 margin was also 112 basis points below the 20.3% recorded in Q1 FY27, although operating EBITDA rose 3.3% sequentially from Rs 33.69 crore. Revenue increased 9.3% quarter on quarter, compared with the smaller EBITDA increase.

The H1 FY27 figures show the same difference between revenue and operating profit growth. Operating EBITDA was Rs 68.50 crore, up 0.2% from Rs 68.36 crore in H1 FY26, while revenue rose 18.4% to Rs 347.50 crore. Consequently, H1 operating EBITDA margin declined 357 basis points to 19.7% from 23.3%.

Which BMW Industries segments drove Q2 revenue growth?

BMW Industries’ Q2 FY27 revenue growth was led by the Rolling Mill, Pipes and Tubes, Logistics and CGL Complex, while the Others category declined. Rolling Mill revenue rose 214.3% year on year to Rs 26.92 crore, Pipes and Tubes increased 93.4% to Rs 31.58 crore, and Logistics grew 69.1% to Rs 17.25 crore. CGL Complex revenue increased 12.0% to Rs 96.80 crore.

The Others category declined 61.7% to Rs 8.94 crore from Rs 23.35 crore in Q2 FY26. The CGL Complex remained the largest disclosed revenue segment at Rs 96.80 crore, representing more than half of total Q2 revenue from operations of Rs 181.50 crore. The presentation states that the CGL Complex includes proprietary sales, production and dispatch of galvanised iron products.

Operational data also show higher activity across the disclosed businesses. CGL Complex production rose to 191,983 metric tonnes in Q2 FY27 from 162,609 metric tonnes in Q2 FY26, while dispatch increased to 100,463 metric tonnes from 83,284 metric tonnes. Rolling Mill production rose to 39,484 metric tonnes from 10,637 metric tonnes, and Pipes and Tubes dispatch reached 73,603 metric tonnes from 41,877 metric tonnes.

How did BMW Industries’ balance sheet change by September 2026?

BMW Industries reported higher net debt and a longer cash conversion cycle at 30 September 2026 as the Bokaro project progressed. Net debt increased to Rs 588.52 crore from Rs 363.82 crore at 31 March 2026, while net worth increased to Rs 835.03 crore from Rs 804.00 crore. Net debt to operating EBITDA was 4.30 times at September 2026, compared with 2.20 times in FY26.

Capital employed turnover declined to 0.52 at September 2026 from 0.61 in FY26 and 0.70 in FY25. The cash conversion cycle was 107 days at September 2026, compared with 87 days at March 2026, although it was below the 111 days reported in June 2026. Inventory days increased to 43 from 34 over the March-to-September comparison, while receivable days rose to 77 from 63.

The presentation includes Rs 307.50 crore of Bokaro greenfield-project debt in capital employed at 30 September 2026. It also reports Rs 41.88 crore deployed for Bokaro working-capital requirements before the Colour Coating facility started operations on 5 October 2026. Net debt to equity was 0.70 at September 2026, compared with 0.45 in FY26.

What is BMW Industries doing at the Bokaro expansion?

BMW Industries commissioned the first phase of its Greenfield Downstream Steel Complex at Bokaro after its Colour Coating line received Consent to Operate on 5 October 2026. Management said the approval marked the company’s entry into the colour-coated steel segment. By 30 September 2026, Rs 516.40 crore had been deployed on the expansion, including Rs 208.90 crore from internal accruals and Rs 307.50 crore through debt.

Approximately Rs 60 crore had been capitalised towards the first phase of the Colour Coating line as of 5 October 2026. Management said it would focus on improving capacity utilisation, ramping up the Bokaro facilities and expanding proprietary operations and value-added products. The presentation does not disclose production, revenue or profitability targets for the new line.

The legacy business had available capacity ahead of the Bokaro ramp-up. H1 FY27 annualised utilisation was 70.5% at the CGL Complex, 85.6% at the Rolling Mill and 38.7% in Pipes and Tubes. Compared with FY26, CGL Complex utilisation was close to the prior 70.9%, while Rolling Mill utilisation increased from 41.7% and Pipes and Tubes utilisation rose from 34.2%.

Conclusion

BMW Industries’ 42.7% Q2 FY27 increase in PAT to Rs 21.62 crore occurred despite a 5.7% decline in operating EBITDA and a 630-basis-point decline in operating margin. The Rs 11.85 crore increase in other income, alongside revenue growth in Rolling Mill, Pipes and Tubes, Logistics and CGL Complex, distinguishes reported profit growth from the operating EBITDA trend.

The next disclosed development is the ramp-up of the Bokaro Colour Coating facility, which began operations on 5 October 2026, and management’s plan to improve utilisation across its operations. The company’s project funding and working-capital requirements also remain relevant after net debt reached Rs 588.52 crore and the cash conversion cycle stood at 107 days at September 2026.