BEML Ltd Q1 FY27 Results (NSE: BEML)
Signal: Loss narrowed
The read
The key inflection is negative: after EBITDA margins of 9.0% in Q2FY26, 0.0% in Q3FY26 and 15.0% in Q4FY26, Q1FY27 fell to 0.4% despite 29.3% YoY revenue growth; the recovery remains volume- or revenue-led without dependable margin conversion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹819.62 Cr | 29.3% | -54.3% |
| EBIT | ₹-19.85 Cr | 67.2% | N/A |
| Net profit | ₹-27.02 Cr | 57.9% | N/A |
| EPS | ₹-3.24 | 79.0% | N/A |
| EBIT margin | 0.4% |
P&L walk
Revenue increased to ₹81,962 lakh, +29.3% YoY but -54.3% QoQ; material costs fell to 52.3% of revenue from 58.6% a year ago, yet EBITDA margin was only 0.4% versus 8.0% YoY and 15.0% QoQ, leaving PAT at a ₹2,701 lakh loss.
Key positives
- Revenue increased 29.3% YoY to ₹81,962 lakh, reversing the 2.4% YoY decline in Q2FY26 and 23.6% growth in Q3FY26 with a higher absolute quarterly base.
- Cost of materials declined to 52.3% of revenue from 58.6% YoY, providing a 630bps variable-cost tailwind, although gross margin still compressed because other production and operating costs prevented conversion.
- The PAT loss narrowed to ₹2,701 lakh from ₹6,411 lakh YoY, and EPS loss narrowed to ₹3.24 from ₹15.40, with other income of only ₹157 lakh and no exceptional item.
Key concerns
- Gross margin compressed approximately 680bps YoY to 44.3% despite revenue growth of 29.3%; the filing does not disclose the cause, indicating weak visibility on pricing, mix or production-cost control.
- EBITDA margin fell 1460bps QoQ to 0.4% from 15.0%, showing severe quarterly earnings volatility and inadequate conversion of the ₹81,962 lakh revenue base.
- Finance costs rose 41.4% YoY to ₹1,387 lakh while interest-service coverage was negative at 1.43x, reflecting limited operating protection for financing costs.
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