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View Claim Ledger →Bmw Industries Ltd — Q4 FY26
BMW Industries delivered a record Q4 FY26 with operating income of 210 crores, EBITDA of 58 crores (27.5% margin), and PAT of 33 crores (15.4% margin).
bullish
high
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BMW Industries delivered a record Q4 FY26 with operating income of 210 crores, EBITDA of 58 crores (27.5% margin), and PAT of 33 crores (15.4% margin). Full-year revenue stood at 665 crores with EBITDA of 165 crores (24.8% margin) and PAT of 81 crores. The strong performance was driven by improved capacity utilization: CRM complex production reached 718,000 MT (70.9% utilization) and pipes/tube production grew to 201,000 MT. The company reiterated its guidance of 75% revenue CAGR from FY25 to FY28, supported by the phased commissioning of the Bokaro greenfield project (phase 1 starting Q1 FY27). EBITDA and PAT margins are expected to stabilize at 12-13% and 5-6% respectively by FY28. Key risk: delays in Bokaro ramp-up or adverse steel spread movements could impact margin targets.
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Bokaro Ramp-Up Delays
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CRM Complex Production
718,000 MT
+4pp utilization vs Dec
Annualized utilization improved to 70.9% from 66.9% in December, reflecting stronger capacity utilization.
Pipes & Tubes Production
201,000 MT
+13.6% YoY
Production increased from 177,000 MT in FY25, though utilization remains low at 34.2%.
Net Debt to Equity
0.45x
flat
Net debt stood at 364 crores; excluding Bokaro borrowings, ratio was 0.27x.
Bokaro Project Capex
800 crores
flat
Total project cost; debt-equity mix of ~250-300 equity and balance debt, funded partly by internal accruals.
What Changed vs Last Quarter
NEW
75% Revenue CAGR FY25-FY28
Company expects revenue to grow at a CAGR of approximately 75% from FY25 to FY28, driven by Bokaro commissioning and organic growth.
NEW
EBITDA CAGR of ~45% and PAT CAGR of ~40% FY25-FY28
Operating EBITDA and PAT are expected to grow at CAGRs of nearly 45% and 40% respectively over the same period.
NEW
PAT Margin Stabilization at 5-6% by FY28
Blended PAT margin expected to stabilize at 5-6% by FY28.
UPDATED
EBITDA Margin Stabilization at 12-13% by FY28
Blended EBITDA margin expected to stabilize at 12-13% by FY28 as integration benefits and scale materialize.
DROPPED
Revenue CAGR of ~75% over three fiscals
Consolidated revenue expected to grow at a CAGR of approximately 75% driven by Bokaro commissioning and organic growth.
DROPPED
Operating EBITDA CAGR of ~45% over three fiscals
Operating EBITDA expected to grow at a CAGR of 45% over the same period.
DROPPED
PAT CAGR of 35-40% over three fiscals
Profit after tax projected to grow at 35-40% CAGR over the next three fiscals.
NEW RISK
Margin Dilution from Business Model Shift
Transition from conversion to buy-and-sell model will reduce EBITDA margins; management argues absolute EBITDA will grow.
NEW RISK
Trade Receivables Spike
Receivables jumped from ~80 crores to ~150 crores due to a key customer delaying payment; though collected in April, it signals customer concentration risk.
NEW RISK
Raw Material Price Volatility
Zinc, aluminium, and magnesium price fluctuations could impact margins; management noted difficulty in taking long forward orders without hedging.
RISK GONE
Steel price volatility exposure
Transition to an input-intensive model increases exposure to raw material price fluctuations, though management claims limited impact.
RISK GONE
Capacity underutilization in pipes and tubes
Current capacity utilization in pipes and tubes is only ~30%, and achieving 60-65% may take longer than expected.
RISK GONE
Interest cost escalation
With ₹500 crore debt at sub-8% interest, interest costs will rise significantly post-capitalization, potentially impacting net margins.
Fast read
Guidance and risk preview
Company expects revenue to grow at a CAGR of approximately 75% from FY25 to FY28, driven by Bokaro commissioning and organic growth.
Phase 1 commissioning expected in Q1 FY27, but meaningful sales only from Q2; any delay could impact revenue guidance.
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