Bombay Coated revenue rose 68% as FY26 EBIT margin fell

Bombay Coated and Special Steels Limited increased revenue from operations by 67.73% to Rs 1,266.818 crore in FY26 from Rs 755.259 crore in FY24, but its EBIT margin fell to 6.04% from 7.17%. Bombay Coated attributed the FY26 decline primarily to a higher cost of materials consumed as a share of revenue.

How fast did Bombay Coated’s revenue and earnings grow?

Bombay Coated’s revenue grew faster than profit between FY24 and FY26. Revenue from operations increased by Rs 511.559 crore, from Rs 755.259 crore in FY24 to Rs 1,055.707 crore in FY25 and Rs 1,266.818 crore in FY26. Profit after tax, or PAT, rose by Rs 9.401 crore over the same two-year period, from Rs 21.138 crore to Rs 30.539 crore.

The annual pace of sales growth slowed in FY26 while remaining positive. Revenue rose 39.78% in FY25 and 20.00% in FY26, whereas earnings before interest and tax, or EBIT, increased from Rs 54.169 crore in FY24 to Rs 68.401 crore in FY25 and Rs 76.497 crore in FY26. Adjusted EBITDA, meaning earnings before interest, tax, depreciation and amortisation adjusted for other income, rose from Rs 49.165 crore in FY24 to Rs 86.090 crore in FY26.

Why did Bombay Coated’s FY26 EBIT margin fall despite higher revenue?

Bombay Coated’s FY26 EBIT margin fell because cost of materials consumed increased as a percentage of revenue from operations. EBIT margin, calculated as EBIT divided by revenue from operations, declined 44 basis points to 6.04% in FY26 from 6.48% in FY25. A basis point is one-hundredth of a percentage point.

The FY26 movement followed a 69-basis-point decline in FY25, when EBIT margin fell from 7.17% in FY24 to 6.48%. EBIT nevertheless increased by Rs 8.096 crore in FY26 as revenue increased by Rs 211.111 crore. The company processes steel coils into slit coils, blanks and sheared blanks, making material consumption a direct part of its operating cost structure.

Adjusted EBITDA margin also declined in FY26, although by less than EBIT margin. It fell 22 basis points to 6.80% from 7.02% in FY25, after rising 51 basis points from 6.51% in FY24. Depreciation and amortisation expense increased to Rs 12.601 crore in FY26 from Rs 8.629 crore in FY25, while adjusted EBITDA adds back that expense and adjusts for other income.

What happened to Bombay Coated’s profit margins after finance costs?

Bombay Coated’s profit before tax, or PBT, and PAT margins both declined for a second consecutive financial year. PBT margin fell to 3.22% in FY26 from 3.52% in FY25 and 3.73% in FY24. PAT margin declined to 2.41% in FY26 from 2.72% in FY25 and 2.80% in FY24.

The company attributed the FY26 PAT-margin decline to higher costs of materials consumed and other operating expenses as proportions of revenue. Finance cost rose to Rs 35.708 crore in FY26 from Rs 31.235 crore in FY25, while tax expense rose to Rs 10.249 crore from Rs 8.493 crore. These items contributed to the difference between FY26 EBIT of Rs 76.496 crore in the reconciliation and PAT of Rs 30.539 crore.

The three-month period ended June 30, 2026 reported higher margins than FY26, but the figures are not annualised. Revenue from operations was Rs 397.080 crore, EBIT was Rs 29.272 crore and EBIT margin was 7.37% for the period. PAT was Rs 15.075 crore and PAT margin was 3.80%.

Did capacity expansion support Bombay Coated’s revenue growth?

Bombay Coated increased installed processing capacity and actual production between FY24 and FY26. Installed capacity across slitting, cut-to-length, embossing and shearing rose to 462,411 metric tonnes in FY26 from 301,541 metric tonnes in FY24. The company operated four manufacturing facilities in Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan and Sri City in Andhra Pradesh.

Slitting accounted for 238,020 metric tonnes of FY26 capacity, or 51.47% of the total, and cut-to-length accounted for 184,324 metric tonnes. Actual slitting production increased to 144,258 metric tonnes in FY26 from 82,576 metric tonnes in FY24. Cut-to-length production increased to 108,276 metric tonnes from 52,995 metric tonnes over the same period.

Capacity utilisation did not move uniformly across processing categories. Slitting utilisation was 60.61% in FY26, compared with 46.66% in FY24, while cut-to-length utilisation was 58.74%, compared with 55.75%. Embossing utilisation declined to 46.68% in FY26 from 63.70% in FY25, and shearing utilisation declined to 59.86% from 73.41%.

How did Bombay Coated’s capital, debt and returns change?

Bombay Coated’s reported return measures declined in FY26 as the growth in capital and assets exceeded the growth in earnings. Return on capital employed, or RoCE, fell to 16.40% in FY26 from 18.78% in FY25, while capital employed rose to Rs 466.415 crore from Rs 364.138 crore. EBIT increased to Rs 76.496 crore from Rs 68.401 crore during that comparison.

Return on equity fell to 29.92% in FY26 from 41.76% in FY25 and 48.20% in FY24. Average equity increased to Rs 102.314 crore in FY26, while PAT after other comprehensive income was Rs 30.613 crore. Return on assets declined to 5.93% from 7.09% as average total assets rose to Rs 514.835 crore.

Total borrowings increased to Rs 338.454 crore at March 31, 2026 from Rs 276.961 crore a year earlier, while total equity increased to Rs 121.581 crore from Rs 83.047 crore. As equity rose faster proportionately than borrowings, the debt-to-equity ratio decreased to 2.78 times from 3.33 times. Debt service coverage ratio fell to 1.75 times from 1.77 times, which the company attributed primarily to higher debt service.

Conclusion

Bombay Coated’s FY24-to-FY26 financial record combines a 67.73% rise in revenue with a 113-basis-point reduction in EBIT margin. Installed capacity, output, EBIT and PAT increased in rupee terms, but a larger material-cost share of revenue reduced operating margin, while higher material costs and other operating expenses also reduced PAT margin.

The next disclosed update to watch is Bombay Coated’s periodic disclosure of key performance indicators after listing. The company has said it will disclose these indicators at least annually for one year after listing, or until utilisation of issue proceeds, subject to the stated regulatory conditions. The non-annualised period ended June 30, 2026 reported a 7.37% EBIT margin, compared with 6.04% for FY26.