Transcript for the Investor''s/ Analyst Meet held on 17th August, 2026 at 15:30 P.M.

“BMW Industries Limited Q1 FY27 Earnings Conference Call” August 17, 2026 MANAGEMENT: MR. HARSH BANSAL – MANAGING DIRECTOR – BMW INDUSTRIES LIMITED MR. VIKRAM KAPUR – CHIEF FINANCIAL OFFICER – BMW INDUSTRIES LIMITED MR. SANJEEV SANCHETI – INVESTOR RELATIONS – UIRTUS ADVISORS – BMW INDUSTRIES LIMITED MODERATOR: MS. JUHI MANWANI – ARIHANT CAPITAL MARKETS LIMITED Page 1 of 10 BMW Industries Limited August 17, 2026 Moderator: Ladies and gentlemen, good day, and welcome to BMW Industries Limited Q1 FY27 Earnings Conference Call hosted by Arihant Capital Markets Limited. 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 star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Juhi Manwani from Arihant Capital Markets Limited. Thank you, and over to you. Juhi Manwani: Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining into the Q1 FY27 Earnings Conference Call of BMW Industries. Today from the management, we have Mr. Harsh Bansal, Managing Director; Mr. Vikram Kapur, Chief Financial Officer; Mr. Sanjeev Sancheti, Investor Relations at Uirtus Advisors. So without any further delay, I will hand over the call to Mr. Harsh for his opening remarks. Over to you, sir. Sanjeev Sancheti: Good afternoon to all the participants. This is Sanjeev Sancheti. Before I hand over the call to Mr. Harsh Bansal for his opening remarks, I would like to draw your attention to the safe harbor statement included in the earnings presentation. I request all the participants to kindly review the same and have a good look at it prior to commencement of the session. Thank you, and over to you, Mr. Bansal. Harsh Bansal: Thank you, sir. Good afternoon, everyone, and thank you for joining us for the BMW Industries Limited earnings call for the first quarter of FY27. We are pleased to report a strong start to FY27, underpinned by healthy profit growth, improving utilizations across our downstream business and continued progress on our strategic expansion. Operating income for the quarter stood at INR166.0 crores, representing a year-on-year growth of 11.6%. Gross profit was INR112.7 crores with a gross profit margin expanding by 536 basis points year-on-year to 67.9%. Operating EBITDA increased by 7.1% year-on-year to INR33.7 crores, translating into a margin of 20.3% compared with 21.2% in Q1 FY26. While gross profit margins improved meaningfully, the operating EBITDA margin contracted due to a sharp increase in fuel prices arising from the conflict in the Middle East. Fuel prices have since moderated considerably. Given the volatility witnessed during the quarter, we have also initiated discussions with our customers to incorporate gas prices into our price variation mechanisms. This is aimed at mitigating the future impact of fluctuations, if any, in fuel costs and providing greater stability to our margins. Profit after tax grew 25.8% year-on-year to INR19.1 crores with the PAT margin improving 92 basis points to 10.8%. This performance was underpinned by the continued ramp-up across our Page 2 of 10 BMW Industries Limited August 17, 2026 downstream capacities. The rolling mill business achieved an annualized capacity utilization of approximately 83.5%, reflecting healthy demand and stronger volume absorption. While the pipes and tubes business operated at approximately 40.1%, with production increasing sequentially. With strong visibility across both businesses, we expect utilization and throughput to improve further, supporting operating leverage and sustained profitability growth. On the balance sheet, we remain focused on funding our growth ambitions while maintaining disciplined leverage and working capital management. ROCE as of 30th June 2026 stood at 9.5% and ROE at 9.4%, both on an annualized basis. These should be read in the context of the greenfield project. The capital drawdown for Bokaro is already reflected in our capital employed, while the plant is yet to be commissioned and has therefore not begun contributing to returns. This is a reflection of the transitory capital deployment phase we are currently in. As commissioning commences from Q2 FY27 and the facility ramps up, we expect ROCE to progressively improve. Net debt stood at INR468.9 crores at a net debt-to-equity ratio of 0.57x, of which INR202.4 crores represents long-term borrowings drawn for the Bokaro project. Importantly, healthy and consistent operating cash flows enabled us to deploy INR139.2 crores of internal accruals towards the expansion, taking total capital deployed to INR341.6 crores. Looking ahead, our next phase of growth will be driven by the optimal utilization of our existing capacity across the conversion business alongside the new downstream capacities being established at Bokaro. As communicated earlier, the company will operate a balanced business model, integrating our traditional conversion business with a proprietary supply model, wherein we will source input materials directly and supply finished products, capturing greater value across the chain by diversifying our customer base. We reiterate our earlier guidance of approximately 70% to 75% consolidated revenue CAGR over FY25 to FY28, supported by the phased commissioning and ramp-up of Bokaro, alongside continued strategic organic growth across our existing verticals. Over the same period, we expect operating EBITDA and PAT to grow at a CAGR of approximately 40% to 45% and 35% to 40%, respectively, with EBITDA and PAT margins gradually stabilizing at approximately 12% to 13% and 5% to 6% by FY28 as the benefits of scale, integration and operating leverage materialize. As we move forward, we remain focused on the disciplined execution of our expansion initiatives, improving operational efficiencies and deepening our value-added product portfolio, with a clear focus on sustainable growth, prudent capital deployment and balance sheet discipline. We remain committed to creating enduring long-term value for all our stakeholders. With that, I will now open the floor for questions. Thank you. Moderator: Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Bhavesh, an Individual Investor. Please go ahead. Page 3 of 10 BMW Industries Limited August 17, 2026 Bhavesh: Good afternoon, Mr. Bansal. Congratulations on a good set of results. Sir, regarding our growth trajectory, we posted a stable top line of around INR166 crores in this quarter. So a high growth of CAGR target of around 75% is highlighted by the management. So based on this Q1 baseline, what kind of quarterly run rate or volume ramp-up are we factoring for the second half of the year to approach aggressive annual targets? So correct me if I'm wrong, are you going to do roughly upwards of like INR1,400 crores, INR1,500 crores of revenue this year to achieve the figure? Harsh Bansal: Hi Bhavesh-ji, welcome back. So good to have you again. I cannot -- I mean, we have not commented individually on the FY27 numbers, and so I would refrain from doing that. The guidance remains on track for FY28. Like I mentioned in my opening statement, we will be commissioning the color-coated segment of our product offering this quarter, and this will continue to ramp up, let's say, over the next 6 quarters, which is FY28. Over the subsequent quarters, we'll be also commissioning the cold rolling and the Galvalume line. And so the FY28 numbers will come to reflect the consolidated of everything rank up. But I will refrain from giving a specific guidance for FY27. Bhavesh: Okay, sir. Sir, coming on the trade receivables. So in the previous quarter, management noted that customer payment was delayed and it would be rea [Showing first 8,000 characters — download PDF for full document]