Analysts/Institutional Investor Meet/Con. Call Updates

“BMW Ventures Limited Q2 FY2027 Earnings Conference Call” November 4, 2026 Management: Mr. Bijay Kumar Kishorepuria – Chairman Mr. Neeraj Bangur – Head, Finance Investor Relations Advisor: Mr. Rutul Shah, Preet Choradiya Page 1 of 15 BMW Ventures Limited November 4, 2026 Moderator: Ladies and gentlemen, good day and welcome to BMW Ventures Limited Earnings Call for Q2 FY27 financial results. Please note all participant lines will be in the listening mode. There will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. With that, I hand over the call to Mr. Chairman Bijay Kumar Kishorepuria. Thank you and over to you, sir. Bijay K Kishorepuria: Namaskar. A very warm welcome to all the investors and analysts attending BMW Ventures Limited's first conference call. We thank you all for joining us today. First of all, I would like to share some thoughts about our company's business, our journey so far, and our future growth plans. Over the past few years, we have worked continuously to strengthen our business and expand into new business areas. BMW Ventures is primarily known for its steel distribution business. Over the past three decades, we have built strong relationships with our customers, suppliers, and dealers. Even today, our distribution business is the biggest strength of our company. We have around 1,200 dealers across Bihar, and through these dealers, we deliver our products to consumers, ensuring our products reach every village and city. Our main business is steel distribution, but it reaches consumers through the distribution network and dealers. Sales volume has been very good. Profit margins are a bit lower compared to the business. We are trying to leverage our strong supply chain, dealer network, and market reputation to grow this business further. At the same time, we are working on value-added businesses where we can earn better margins and profits. For instance, in tailor-made re-bars, when buildings are constructed, we fabricate steel according to their designs and supply it to them. This saves labor at their construction sites and materials reach them much faster, saving them a lot of time. Recently, we supplied re-bars for a project where the client mentioned that by taking ready-made re-bars from us, they saved two months of construction time. Our goal is not just to sell steel, but to provide ready-to-use products tailored to customer needs. By making the best use of our strong network, we can increase business volume. Our future growth has a major component: the fabrication business. Keeping this in mind, BMW Prefab was started. In this business, we provide fabrication and PEB solutions. We are an approved vendor for Bihar Railways. For railway bridges, we manufacture and supply steel structures based on their designs. Currently, in Bihar and Northeast India, there is immense government focus and demand for this. We are working on this and securing good orders. Patna airport expansion is also underway, and we are supplying steel for its hangar structure from here. In Purnea, we are manufacturing steel molds; the entire steel design was done by a Delhi architect, and the steel is being manufactured at our plant. This mill has two basements, a ground floor and a 10-storey building. All the steel is being used to build the mill and we are building it. This way, we are working on value-added businesses. We believe that fabrication business yields better profit margins compared to primary steel distribution, Page 2 of 15 BMW Ventures Limited November 4, 2026 with an EBITDA margin of around 10% to 12%. Our goal is for the fabrication business to contribute significantly to company profits. By FY28, we aim to derive 5% to 7% of revenue and 10% of EBITDA from the fabrication business. In the manufacturing sector, we are also taking steps into the welding electrode business. We are setting up a welding electrode plant in Purnea. The plant is built, and commercial production will start this November. We will manufacture and sell under our own brand using our existing network, so there are no marketing hurdles. Welding electrodes have a massive market. Our focus is to expand this business through good quality, fair pricing, and a strong dealer network. In the manufacturing sector, we are also making small scale nails. Though the quantity is currently small, we will scale up production under our own brand. We hope these new businesses will contribute significantly to the company. We own two plots of land in Purnea - one measuring 16 acres and the other 43 acres. On the 16 acre plot, we plan to develop a housing project after acquiring a small adjoining piece of land. We will develop and plot the housing project to sell to customers, which will generate substantial revenue. On the 43-acre land, we plan to build an industrial park. Leaving a few acres of open land in between, we will develop industrial plots. Since the government offers subsidies for industrial parks, setting up 2-acre industrial plots will drive major growth and revenue for the company. Purnea in Bihar is close to Northeast India, so material fabrication there will have great logistical advantages. Although commodity trading businesses keep profit margins regulated and steady, we are maintaining stability. In steel, even with our current inventory holding, our revenue grew by 46% pre-tax, and profit grew by 55% pre-tax, while the post-tax growth was 48%. We expect this growth to continue as demand for steel rises, driven by extensive government infrastructure projects and construction work. Our focus remains on fully utilizing our existing capacities, expanding our dealer network, and increasing overall profitability. We also distributed an interim dividend of ₹1.5 per share last year, and our board has announced another interim dividend of ₹1.5 per share. We aim to reward our shareholders consistently as profits grow. Thank you very much. Moderator: Neeraj-ji, would you like to give some opening remarks? Neeraj: Thank you, Bijay Sir. A warm namaskar to all investors and analysts. I will present the financial performance and operational progress of BMW Ventures for Q2. During Q2 FY27, the company's revenue stood at ₹731 crore, compared to ₹502 crore in Q2 FY26, marking an impressive revenue growth of approximately 46%. Gross profit for the quarter was ₹64.6 Page 3 of 15 BMW Ventures Limited November 4, 2026 crore, up from ₹52 crore in the corresponding quarter last year, a growth of 24%. Our gross profit margin for the quarter was 8.8%. EBITDA for Q2 FY27 stood at ₹22.1 crore, compared to ₹20 crore last year, reflecting an 11% growth. Profit Before Tax for Q2 FY27 was ₹15 crore, up 50% from ₹10 crore in the same quarter last year. Profit After Tax for the quarter was ₹10.5 crore, compared to ₹7.1 crore in the previous year's corresponding quarter, registering a robust growth of 48%. Our PAT margin for the quarter stood at 1.4%. Regarding our fabrication business, as our Chairman mentioned, we have an installed fabrication capacity of 24,000 metric tons in Purnea—split equally into 12,000 tons for railway applications and 12,000 tons for PEB structures. We have an operational fabrication area of around 87,000 square feet. We started our fabrication business in November 2022. As of September 30, our fabrication order book stands at a healthy ₹76.5 crore, which includes ₹50.8 crore from PEB and railway orders, and ₹25.7 crore from the Bihar Railway RDSO- approved unit orders. We believe EBITDA margins in the fabrication business range between 9% to 11%, which will play a critical role in enhancing overall company profitability going forward. Therefore, this business can play an important role in improving the overall profitability of the company in the future. Industrial warehousing, logistic infrastructure, highways, bridges, railway, metro, airport and port projects are also expected to provide [Showing first 8,000 characters — download PDF for full document]