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BMW Industries Ltd (BOM:542669) Q3 2026 Earnings Call Highlights: Strong Financial Performance …

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This article first appeared on GuruFocus.

  • Operating Income (Q3 FY26): INR162.16 crores, up 9.9% year on year and 11.9% quarter on quarter.

  • Operating EBITDA (Q3 FY26): INR3,855 lakhs, up 6.8% year on year.

  • Operating EBITDA Margin (Q3 FY26): 23.8%.

  • Profit After Tax (Q3 FY26): INR1,761 lakhs, a 16.3% quarter on quarter improvement.

  • Operating Income (9 months FY26): INR45,573 lakhs.

  • Operating EBITDA (9 months FY26): INR10,690 lakhs with a margin of 23.5%.

  • Net Debt: INR23,231 lakhs, with net debt to operating EBITDA at 1.63x and net debt to equity at 0.3x.

  • Return on Capital Employed (ROCE): 10.1% as of December 31, 2025.

  • Return on Equity (ROE): 8.5% as of December 31, 2025.

  • CRM Segment Dispatches: Increased 18.1% sequentially.

  • Projected Revenue Growth: Consolidated revenue expected to grow at a CAGR of approximately 75% over the next three fiscals.

  • Projected Operating EBITDA Growth: Expected to grow at a CAGR of 45% over the next three fiscals.

  • Projected Profit After Tax Growth: Expected to grow at a CAGR of 35% to 40% over the next three fiscals.

  • Projected PAT Margin: Stabilizing at approximately 5% by FY28.

  • Projected Return on Capital Employed: 15% or more by FY28.

Release Date: January 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • BMW Industries Ltd (BOM:542669) achieved financial closure for its Greenfield Downstream Steel Complex at Bokaro, securing INR500 crores of long-term debt financing, indicating strong lender confidence.

  • The company’s operating income for Q3 FY26 increased by 9.9% year on year and 11.9% quarter on quarter, reflecting strong financial performance.

  • Operating EBITDA for Q3 FY26 rose by 6.8% year on year, with a healthy operating EBITDA margin of 23.8%.

  • The CRM segment witnessed a strong rebound with dispatches increasing 18.1% sequentially, supported by improved off-take and better demand conditions.

  • BMW Industries Ltd (BOM:542669) anticipates consolidated revenue to grow at a CAGR of approximately 75% over the next three fiscals, driven by the phased commissioning of the Bokaro Greenfield Project and organic growth in existing business verticals.

  • The transition to an integrated downstream processing model will lead to a change in cost structure, with raw material costs comprising approximately 80% of revenue, potentially moderating operating EBITDA margins.

  • The company’s net debt stood at INR23,231 lakhs, with a net debt to operating EBITDA ratio of 1.63x, which may pose financial risks if not managed carefully.

  • The TMT contract volumes have stabilized but at a lower level, which could impact future revenue from this segment.

  • Capacity utilization in the pipes and tubes segment is currently low at 30%, indicating underutilization of resources.

  • The Greenfield Bokaro plant is on a long-term lease rather than owned, which could lead to uncertainties regarding lease renewals and associated costs.

Q: Did the current quarter include any trading revenue, and if so, could you quantify the trading component and its margin profile versus the core manufacturing revenues? A: No, the current quarter does not include any trading revenue. Harsh Bansal, Managing Director

Q: Can we expect the same increase in revenue in Q4 as seen in the current quarter? A: Yes, we are well on track to achieve that. Harsh Bansal, Managing Director

Q: Could you share the current unexecuted order book and the expected execution timeline over the next three to four quarters? A: Our order books are more time-based than value-based. The CRM contract remains for five years, the tube contract for three years, and the TMT contract extension is for 12 months until November ’26. The values indicated earlier remain conservatively on track. Harsh Bansal, Managing Director

Q: What is the expected ramp-up profile for each major product line for the Bokaro plant, and how does it compare with internal assumptions for the IRR calculations? A: Between Q1 FY27 and Q4 FY27, the lines will go into operation one by one. Specific IRR calculations cannot be commented on at this point. Harsh Bansal, Managing Director

Q: Are we still on track for the commissioning of phase one of the Bokaro plant by April 2026, and should we expect meaningful revenues in the same quarter? A: Yes, we are on track. There will be meaningful revenues, but as an investor, you might not find it significant yet. Harsh Bansal, Managing Director

For the complete transcript of the earnings call, please refer to the full earnings call transcript.