Bmw Industries Ltd (NSE: BMW) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Ronak Osthwal — Research Analyst
Harsh Bansal — Managing Director
Vikram Kapur — Chief Financial Officer
Analysts:
Unidentified Participant
Bhavish — Analyst
Mayank Jham — Analyst
Utsav Banera — Analyst
Parth Patel — Analyst
Mohan — Analyst
Darshan Jhaveri — Analyst
Dev Mehta — Analyst
Madhur Rathi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to BMW Industries Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing 0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rana Cotswal from Arihan Capital Markets Ltd. Thank you. And over to you sir.
Ronak Osthwal — Research Analyst
Hello and good afternoon to everyone. On behalf of Capital Market Ltd. I thank you all for joining into quarter one S26 earning conference call of BMW Industry. Today’s form management we have Mr. Har S managing director of the company and Mr. Vik S CFO of the company. So without any further delay I will hand over call to her sir for his opening remarks. Over to you.
Harsh Bansal — Managing Director
Thank you Ranavi. Good afternoon everyone and a very warm welcome to our quarter one FY26 earnings call. Before we begin, I would like to draw your attention to the Safe harbor statement in the earnings presentation. I request you to kindly go through the presentation so that you are well aware of its contents. We appreciate your time today and your continued support. Today we will be taking you through the key highlights of our business operational and financial performance for the quarter. We will also share insights into our strategic direction going forward. We are pleased to report that the progress on our key strategic initiatives are advancing as planned.
Phase one of our green field expansion is processing in line with expectations and we remain on track to commence revenue generation from the color coated sheet line by quarter for FY26. During the quarter we successfully commissioned two additional tube mills and a 1.28 megawatt rooftop solar installation at our Jamshedpur facility. These developments have increased our tube manufacturing capacity by 60,000 metric tons per annum bringing our total to approximately 600,000 metric ton per annum across all our units. Revenue for the quarter stood at 148.7 crores reflecting a 5.4% sequential decline and a 14.4% decline year on year.
This dip was primarily due to the temporary shutdown by our key customers which impacted volumes in the CRM and rolling mill segments with some spillover into tubes. Operating EBITDA margin stood at 21.2% compared to 24.4% in quarter one FY25. While this represents a year on year contraction of 326 basis points, the margin movement was largely due to transitory fixed cost absorption on a temporary lower revenue base. Despite this, our margin remain Our margins remain relatively range bound and should see an improvement as volumes recover. Profit after tax came in at 15.2 crores, a margin of 9.9%.
Looking ahead, we remain confident in the resilience of our core operations. As customer activity resumes and plant operations normalize, we expect a healthy recovery in volumes. The Bokaro Project is poised to act as a key growth catalyst in the upcoming quarters as well as helping us expand our capabilities across the value chain and we are optimistic about the opportunities that lie ahead for those who did not attend our last call wherein we had given our medium term guidance. Over the next three fiscals, we anticipate consolidated revenue to grow at a CAGR of approximately 75% driven by the phased commissioning of Bokaro Greenfield project and our organic growth operating EBITDA is expected to grow at a CAGR of 45% over the same period, with the operating EBITDA margin stabilizing at about 11% by FY28.
As we progressively integrate the new and existing business lines, it is important to contextualize our margin outlook within the evolution of our revenue model. Historically, our conversion business model has delivered operating EBITDA margins in the mid-20s owing to very limited raw material exposure. With the transition to an integrated downstream steel processing model, our cost structures will change. Steel inputs will now form a part of our cost structure, resulting in raw material costs comprising over 80% of our revenue. Accordingly, consolidated operating EBITDA margin will moderate as the legacy business blends with a more input intensive model.
However, this should not be viewed as a deterioration in performance, rather it reflects a conscious pivot towards scaling volumes. Deepening. The value chain integration, expanding our market reach and enhancing stakeholder value. We would encourage you to interpret margin trends alongside absolute value creation. While margins may normalize, the top line is set to expand materially and PAT is expected to grow at a robust 40% CAGR over the next three years with a PAT margin expected to stabilize at about 5% by FY28 resulting in a return on capital employed of over 18%. In closing, we continue to execute with discipline and strategic clarity, focusing on long term value creation. Despite short term challenges, our fundamentals remain strong and we are well positioned to deliver sustained, profitable growth.
We thank our shareholders for their continued trust and support during the transformative phase of our growth journey. Thank you. Over to you please.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question and One on the touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pavish, an individual investor. Please go ahead.
operator
Good afternoon sir. Hi Babaji, can you hear me?
Bhavish
In your presentation you have written that used manufacturing contract has been extended until H1FY25 with an expected revenue of 3.365crore over the contract period. So the company had given a. And like they are uploaded on 31st December 2024 and an Intimation of Work order received amounting to around 365 crores. And there was an another work order which was uploaded on the 1/2 on 21 May 2025. In that also the order value totals to around some 365 crores. So I just wanted to understand whether these two orders are a separate order or. Or how is it.
Because in a presentation the total order value is 365 whereas the is the.
Harsh Bansal
Same one was a work order and then the contract was officially given. So we disclosed both.
Bhavish
Okay, so it’s the same order from Tata Steel.
Harsh Bansal
Correct. From the tubes division of Tata steel.
Bhavish
Because on the 31st of December you had received. You have received a work order intimation had uploaded that and then again you had uploaded this contact order from Tata Steel.
Harsh Bansal
So I was the work order intimation and the other is the contract. Because they are both material news in nature. We uploaded and disclosed both. But they are the same.
Bhavish
But they are the same. So it is 365 crores and then you have received one more from 1700 crore contracts.
Harsh Bansal
Yes, that’s for the CRM, that’s for the CGL3. That’s right.
Bhavish
Okay, so both are from part of steel.
Harsh Bansal
Correct.
Bhavish
Okay, so as on date what is the total order book you have?
Harsh Bansal
I mean these are the two major ones. Outside of this we have some smaller orders.
Bhavish
Okay. And how’s the Bunsal TMT pipes division progressing? Like how do you see some kind of fraction in it, some growth? Because.
Harsh Bansal
I’m not clear on your question.
Bhavish
Babishji sir, your pipes and fuse manufacturing business, how is it going exactly right now? Because the Q1 we have seen that. That there is a revenue decline. So I just wanted to know how is this business going on? Because. Because this is a high margin business, right?
Harsh Bansal
Which is the high margin business? Bhavishi.
Bhavish
Pipes and tubes.
Harsh Bansal
I mean for us it’s a conversion business and the numbers are there in the part of the presentation. So I mean beyond that there’s not much that I can say. Right.
Bhavish
So going forward, can we see an increase? Of course.
Harsh Bansal
Because you know. And that’s the reason why we continue to invest in our capacity expansion for pipes and tubes. Because that is one segment where we are very optimistic about.
Bhavish
Great. Great, sir. And do you plan to get the stock listed on nse?
Harsh Bansal
We do. We do. Our team is already in conversation and as soon as we are able to fulfill all of their queries and questions.
Bhavish
Okay, thank you so much. I will get back in the queue.
Harsh Bansal
Thank you, Bhagav.
operator
Thank you. Before we take the next question we would like to remind the participants to press star and one to ask a question. The next question is from the line of Mayank Jham. An individual investor. Please go ahead.
Mayank Jham
Good afternoon, sir.
Harsh Bansal
Hi.
Mayank Jham
Yeah, so my question is largely on the PLI scheme. So is it possible you can elaborate on which specific products from our Bukaro facility are eligible under the PLI scheme for specialty steel and the annual and the total production capacities we are planning for that product and the CAPEX amount that we have invested?
Harsh Bansal
Sir, most of these data is a part of our disclosures at various times. However briefly, this is for coated products alloy non alloy coated products. RPLI is approved as well as for GI and Galgalum and ZAM. The total capex includes the entire 803 crores that we have invested that we plan to invest in Bukaro. And the capacity details are also part of our disclosure. I mean I won’t be able to tell you the exact numbers offhand.
Mayank Jham
Yeah. So entire 803 crores comes under the PLI specifications.
Harsh Bansal
Correct.
Mayank Jham
And what immediate revenue or utilization levels can we expect from the color coated steel segment in Q4? FY26.
Harsh Bansal
And we expect the revenues to start in Q4. 25. I won’t put a very high number expectation over there because it will also go through all the ramping up and everything. I think you start to get a better sense of revenue and capacity utilization by early 27. FY27.
Mayank Jham
Is there any target that we have in mind for the utilization level for the FY27 current year?
Harsh Bansal
We’ve actually not put any targets. So whatever we get, we’ll treat that as a bonus.
Mayank Jham
And is it possible to give me the benefit amount that we have received from the solar installation?
Harsh Bansal
The 1.28 megawatt possible. I’m sorry.
Mayank Jham
No worries.
Ronak Osthwal
Thank you.
Harsh Bansal
Thank you.
operator
Thank you. Participants who wish to ask a question one at this time. The next question is on the line of Utsav Banera, an individual investor. Please go ahead.
Utsav Banera
Yeah, hi. Thank you for the opportunity. I would like to ask that after the one off volume drop from a key customer shut down, what has been the month on month recovery curve for CRM and single volumes? Like how does current demand compare to pre shutdown levels?
Harsh Bansal
The current is. How should I put this? We’re closer to normal than not normal.
Utsav Banera
Okay. And end market sectors like in Descent Solar have shown the fastest recovery fast shutdown. Like do you see any secular shifts in customers that could alter your product mix strategy?
Harsh Bansal
Not really. I mean we continue to see, you know, the sectors that have been serviced with us earlier. The same sector is coming back to more normal levels.
Utsav Banera
Okay, thank you.
Harsh Bansal
Thank you. Thank you sir.
operator
Thank you. Participants who wish to ask a question may press Star and one at this time to ask a question. Please press Star and one. I repeat, the next question is from the line of Parth Patel, an individual investor. Please go ahead.
Parth Patel
Hello sir. Hi. So the revenue growth and profitability face pressure in Q1 FY26. Are there any further headwinds expected in the near term? Should we expect EBITDA margin improvement as utilization picks up in the coming quarters?
Harsh Bansal
So interesting question Parthvi. You know a lot of our these businesses are dependent on how the customers facilities operate. And this is probably the most unusual kind of shutdown that we’ve seen in years, in maybe decades. So I don’t expect something like this to get repeated in quarters to come. Having said that, your guess is as good as mine because I would not like to venture a guess on the customer’s facilities up or down. Not sure if I was able to answer your question.
Parth Patel
Yes. So secondly, the net debt has increased from like 12,000 lakhs at March 25 to 16,000 lakhs by June 25. What is the updated peak net debt systemic through the Vocar expansion? And how are you violating the balance between debt and possibly 50 financing in order to maintain a conservative leverage ratio?
Harsh Bansal
We will. We don’t expect to have a stabilized debt equity even at the peak of more than two is to one.
Parth Patel
Okay, so thank you.
operator
Thank you. Before we take the next question, we would like to remind the participants to press Star and one to ask a question. The next question is from the line of Bhavish, an individual investor. Please go ahead.
Bhavish
Thank you for the opportunity. Again sir, if you remember the last con call I had suggested for a mixture of equity and debt for the, for the, for the capital raise. So have you thought about it? How to approach the fundraising plans and. Or just go in that debt form?
Harsh Bansal
We currently continue to work with debt and internal accruals. I’m not discounting future capital raise but at these levels and at this market I don’t want to dilute company equity.
Bhavish
Understand that. But the net debt is also rising. So yes, there is a lot of money in the market.
Harsh Bansal
So if you, and you know, if you can connect me to people who are willing to invest at good valuations, I’m happy to look at it yet.
Bhavish
So I can connect you with the legal counsels because I’m from that I.
Harsh Bansal
Have people, people from Euritus here and I’ll have them connect with you, post the call.
Bhavish
Thank you. Perfect. Perfect. Thank you so much, sir.
operator
Thank you. The next question is from the line of Mohan, an individual investor. Please go ahead.
Mohan
Yeah, two questions are one, is this unexpected shutdown, is this cleared and is that plant up and running the customer? Okay. And the second question is around. You have guided around 75% CAGR and the order backlog looks around the 200 cr sorry 2000 crores at this point of time and we are more concentrated around one customer steel at this point of time. Is there any plan to diversify and any strategy that you have in place to hit that 75%?
Harsh Bansal
Sir, most of the growth in terms of the 75% that we have projected over the next three years. If you recall, we have said that this is on account of the Bukaro greenfield project coming online in failed manner. We expect FY like we’ve earlier mentioned. We expect FY28 to be our first full year of operations for Bukaru where all facilities will have commissioned. And by then the numbers that we have indicated about the CAGR growth, it’s basically through the Bukaru, the organic growth in the existing conversion businesses where there is a higher capital, sorry, customer concentration.
As you said, we’ll see organic growth in terms of let’s say some tubes, maybe some other growth in cgl, maybe some in the rebar TMT segment. But largely most of the growth and the CAGR growth will come from Bukaro.
Mohan
Thank you. Thank you for that. And one final question. We see a lot of individual investors taking up this call. Any plans to promote the organization of the companies with analysts or rather institutions?
Harsh Bansal
Of course, we are in touch with a number of them and I’m sure you’ll get to hear it as and when things move. But you’ll appreciate that these things take time.
Mohan
Thank you and good luck.
Harsh Bansal
Thank you, sir.
Utsav Banera
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ask a question, please press star and one at this time. The next question is from the line of Darshan Javeri from Crown Capital. Please go ahead.
Darshan Jhaveri
Hello. Good evening, sir. Thank you so much for taking my question. Hopefully I’m audible.
Harsh Bansal
Thank you. Darcy. Yes, you are.
Darshan Jhaveri
Yeah. Hi sir. So, sir, just wanted to. A lot of some of my questions have already been answered, so just wanted to, you know, kind of, you know, get a summary of it. So currently I think a bokaro plant is going to come towards the end of the year. So as good as as you said, it will be bonus whatever revenue we can get in the first one of it. So current year we can expect as good as FY25. Like that is how you know the business expectations would be.
Harsh Bansal
No, I think, I think we will be better than FY25. But you know, we’ve not put a short term indication because I’m hesitant to say by how much. However, a more, let’s say a three year indication is what we’ve given. By then all my growth triggers will be activated.
Darshan Jhaveri
Fair enough, sir. And so just a three year. This is small clarification. So the three year thing that we’re saying, so that starts like FY 26, 27 and 28 will be the year where we have the major chunk.
Harsh Bansal
Right.
Darshan Jhaveri
As the bokaro plant is going to be. Okay, okay, fair enough. And so I just wanted to know like currently like at what cost are we, you know, be able to raise debt? Like so just wanted to know that.
Harsh Bansal
I think, you know, that is not something which I can independently talk about only debt and all that. However, your point is well taken. And we try to include weighted average cost of capital kind of a metric in subsequent calls.
Darshan Jhaveri
Yeah. Because I think major capex is now going to be funded by debt. Right. It’s going to hit in a phase manner as we commercialize the plant. Right.
Harsh Bansal
The idea was also dashaj is that as we continue to execute and, and draw down on the debt, we will also start cash flows and be able to kind of service part of it. So there will be a blend of new debt but also new revenue and new margins. Will that that come into the picture?
Darshan Jhaveri
Okay. Okay, fair. Fair enough. So yeah, that is from my side. So thank you so much.
operator
Thank you. Participants who wish to ask a question may please press star and One at this time. The next question is from the line of Dev Mehta, an individual investor. Please go ahead.
Dev Mehta
Good afternoon sir. Firstly sir, I just wanted to understand that is there any trading revenue as a part of our total revenue this quarter?
Harsh Bansal
No.
Dev Mehta
So it was just the last quarter which we did a trading revenue.
Harsh Bansal
I mean majorly. Yes, there is always some materials which are sold but not, not as much as last quarter I’d say.
Dev Mehta
Okay, so the EBITDA margins were mainly affected because of the plant shutdown, right?
Harsh Bansal
Correct, Correct.
Dev Mehta
Okay. And sir, secondly, when we are seeing that we have a aspiration of doing a 3,000 crore of revenue, just wanted to get an idea like how will it materialize? Have we, are we in touch with all the distributors in line? Is there any possible demand visibility? And then yeah, if yes, then in which sector is it solar, defense or. You know there are a lot of towers which are made out of pipe nowadays. So I believe that is also a very growing sector. So major chunk is from which sector.
Harsh Bansal
So we are not looking at very, very downstream sectors. Broadly what I’ll tell you is that the numbers will come from color coated, they will come from alloy non alloy potent products like Galvaloom, Galvanize or Zam and they will come from, you know, mix of all of this. On your first part of the question about the distributors. Yes, we are in touch and we have started to work on that, the distribution marketing strategy. I think part of your question was also talking about the demand, visibility, etc. You know with I think there is a substantial growth in terms of per capita field consumption not just for industrial but also for domestic uses.
So today if you see you travel to most places in rural or semi rural earlier you would typically see a lot of the sheds and structures outside houses made with bamboo or wood. Today a lot of that has started to get converted into pipes and square and rectangular hollow sections, etc. Earlier you would see people using say grass or husk for their roofing or you know, sorry, ceramic tiles. I’m not saying tiles are over but now you have sheets that look like tiles but they are ultimately steel. So earlier you had the, you know, more of the galvanized roofing which was plain silver.
Today it’s not rare to drive, you know and keep seeing color coated sheets being used in every application. I’m extremely optimistic about the demand scenario in India. I don’t think unlike the rest of the world we are even close to a recession kind of a scenario today when India is looking to increase their capacity. We are Currently at let’s say about 130, 140 million tons. We are looking to increase our annual steel making capacity to 200 million tonnes and beyond. There will be a higher and higher need for downstream processing value added steel. More people, aspirational buyers who instead of buying plain silver sheets, they want colored sheets.
More projects want longer lasting coated products. So instead of simple galvanized, they want higher qualities of galvanizing, higher material composition, things like zam. So just to round it up, I’m fairly optimistic about the demand scenario in terms of capacity. If you talk about 150 million tonnes annual, my peak capacity will be half a million tonnes. So I don’t think I am in the category of a market maker. I will be more on the market taking side. You’ve got the biggies who will continue to build the market with momentum and there will always be parts of the market that need higher servicing levels which we can kind of cater to.
Dev Mehta
Thank you sir for beautifully explaining my question. Also sir, just one last point. Are we in when you said that you are in contact with the distributors. So if you can just let me know what will be the geographical concentration? Because currently it’s in the eastern part of India. So will you also be in the contact with Pan India or only it will be concentrated to the eastern part of India.
Harsh Bansal
So because we are located in Bukaro where we have access to hot rolled coils, we are absolutely not looking at a geographical concentration. We are actually speaking to people across the country because this also allows us to widen our market base and keep looking at future expansion opportunities. When the time is right. I believe that for some of our products we will also have opportunities in exporting the products. And so whenever the time is right and we are at a more stable scenario, we will look at exports as an option as well.
Dev Mehta
Got it sir. Thank you sir.
Harsh Bansal
Thank you.
operator
Thank you. Before we take the next participant, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Utsav Baynera, an individual investor. Please go ahead.
Utsav Banera
Hi sir, thank you for taking my question again. So I just wanted to ask that the revenue growth and profitability face pressure in Q1 FY26. So are there any further headwinds expected in the near term or should we expect EBITDA margin improvement as utilization picks up in the coming quarters?
Harsh Bansal
I would expect improved levels because like I mentioned to an earlier call, I have not seen this level of shutdowns and production disruptions in in Many decades. So this is clearly a one off exception.
Utsav Banera
Okay, and what is the breakdown of quarter one, FY26 revenue across verticals and which segments are expected to lead the next leg of growth?
Harsh Bansal
So if you look at slide 9 on the presentation, the breakup of the revenues over there, and this is except for pipes and tubes where we are seeing higher capacity as well as high utilization. All the others will stabilize at their historic utilization levels.
Utsav Banera
So these revenue margins will be the same for across all the verticals or do you expect any of the verticals to increase or change the dynamic?
Harsh Bansal
So, you know, we don’t comment on individual margin numbers. But yeah, in terms of utilization and top lines, I think we should see stabilization in the coming quarters.
Utsav Banera
Thank you so much, sir. Thank you.
Harsh Bansal
Thank you, sir.
operator
Thank you. Participants who wish to ask a question may press star N1 at this time. The next question is from the line of Madhur Ratty from Countercyclical Investments. Please go ahead.
Madhur Rathi
So thank you for the opportunity, sir. If I look at FY26 on an overall basis, sir, what kind of EBITDA can we expect from our operations?
Harsh Bansal
So I will stay away from giving annual or short term guidance like I mentioned, that we will stabilize to historic levels in but specific guidance for FY26 I would be hesitant to give.
Madhur Rathi
Okay. And your rolling milk production and revenues have gone down, sir. Is this because of the plant shutdown that we took?
Harsh Bansal
So there are two factors actually in this. If you compare it to Q1.25. If you look at compared to Q1.25, the reduction is almost 58%. Because in the same time last year we were actually operating two tube mills which we later on mutually along with the customer. We decommissioned one mill. Now if you look at quarter four and this, there is a reduction of about 35%. This is more because of the plant shutdowns.
Bhavish
Okay, got it. So that is from mine. So thank you so much.
operator
Thank you. Ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Harsh Bansal
Thank you as always for the very enlightening questions and kind of forcing us to dig deep and think harder. I’m always very, very grateful for everybody who shows up. Takes their time to ask the questions and clarify if there is anything further that we can do. Our contact information is there on the presentation. Please do reach out to our investment advisors or to the company directly. We will be happy to engage with any of you. Thank you so much. Over to you, please.
operator
Thank you on behalf of BMW Industries limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.