BEML Ltd Q2 FY27 Results (NSE: BEML)
Signal: Margin pressure
The read
The operating inflection is incomplete: revenue accelerated to +42.0% YoY from +29.3% in Q1FY27, but EBITDA margin recovered only to 6.7% from 0.2% QoQ and remained 200bps below the year-ago 8.7% as material costs rose to 60.8% of revenue; the next thesis test is whether margin can recover while the enlarged capex base comes on stream.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,191.61 Cr | +42.0% | +45.4% |
| EBIT | ₹56.09 Cr | +5.5% | |
| Net profit | ₹33.34 Cr | -30.6% | |
| EPS | ₹4 | -30.7% | |
| EBIT margin | 6.7% |
P&L walk
Revenue increased 42.0% YoY to ₹119,161 lakh, but gross margin fell 390bps to 39.2% as material cost rose to 60.8% of revenue; EBITDA grew only 8.5% to ₹7,943 lakh and PAT declined 30.6% to ₹3,334 lakh.
Segments
No segment table was disclosed under the MCA exemption; consolidated PAT of ₹3,334 lakh was only ₹41 lakh above standalone PAT of ₹3,293 lakh, so subsidiaries had no material effect on the quarter.
Key positives
- Revenue increased 42.0% YoY to ₹119,161 lakh, accelerating from 29.3% YoY in Q1FY27 and 23.6% in Q3FY26.
- Operating cash flow turned positive at ₹25,697 lakh in H1FY27 versus -₹24,182 lakh in H1FY26.
- PPE plus CWIP rose 52.4% YoY to ₹109,800 lakh, indicating a substantially larger asset base; depreciation increased 16.6% to ₹2,334 lakh rather than remaining flat.
- Employee plus other expenses grew 22.4% YoY, 19.6 percentage points slower than revenue, providing partial operating-cost absorption despite material-cost pressure.
Key concerns
- Gross margin contracted 390bps YoY to 39.2% as material cost increased to 60.8% of revenue from 56.9%, and the filing does not disclose the cause or evidence of pass-through.
- EBITDA grew only 8.5% YoY to ₹7,943 lakh against 42.0% revenue growth; EBITDA margin declined 200bps YoY to 6.7%.
- PAT fell 30.6% YoY to ₹3,334 lakh despite the revenue rebound, with current tax of ₹2,628 lakh also reducing conversion from PBT.
- Finance cost rose 50.2% YoY to ₹1,488 lakh, faster than revenue growth, while short-term borrowings stood at ₹61,164 lakh.
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