Bhansali Engg. Q2 FY27 Results (NSE: BEPL)
Signal: Margin expansion
The read
Q2FY27 marks a stronger earnings inflection: revenue grew 24.1% YoY to ₹40,336.95 lakh after the recent weak-growth period, while gross margin expanded 365bps to 35.1% and derived EBIT grew 63.6% to ₹7,685.61 lakh; however, the capacity-led next leg is delayed as the ₹200 crore ABS expansion moved from September 2026 to end-March 2027.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹403.37 Cr | +24.1% | -14.6% |
| EBIT | ₹76.86 Cr | +63.6% | |
| Net profit | ₹62.46 Cr | +54.4% | |
| EPS | ₹2.51 | +54.0% | |
| EBIT margin | 19.1% |
P&L walk
Consolidated revenue rose 24.1% YoY to ₹40,336.95 lakh, gross margin expanded 365bps to 35.1%, derived EBIT grew 63.6% to ₹7,685.61 lakh and PAT rose 54.4% to ₹6,246.17 lakh; the main near-term risk is delayed capacity commissioning.
Segments
The company reports a single segment, Highly Specialized Engineering Thermoplastics; consolidated PAT of ₹6,246.17 lakh was ₹57.11 lakh below standalone PAT of ₹6,303.28 lakh because the joint venture contributed ₹33.13 lakh after tax and other consolidation effects.
Key positives
- Revenue rose 24.1% YoY to ₹40,336.95 lakh after the prior Q1FY27 growth surge, while gross margin expanded 365bps YoY to 35.1%.
- Derived EBIT grew 63.6% YoY to ₹7,685.61 lakh versus revenue growth of 24.1%, with employee expense up 18.9% and other expenses up 17.6%, both below sales growth.
- PAT increased 54.4% YoY to ₹6,246.17 lakh and EPS rose 54.0% to ₹2.51, showing no material dilution.
- The company remains effectively debt-free, with finance cost down 35.0% YoY to ₹3.87 lakh and a second interim dividend of ₹1 per share declared.
Key concerns
- The ₹200 crore capacity expansion was delayed from September 2026 to March 2027 because imported equipment, foreign service engineers and reactor deliveries were disrupted.
- H1FY27 operating cash flow was negative ₹2,366.99 lakh despite profit before tax of ₹17,764.62 lakh, driven by working-capital movements including a ₹5,565.88 lakh increase in trade and other receivables.
- The current-quarter revenue decline of 14.6% QoQ to ₹40,336.95 lakh indicates sequential volatility despite YoY recovery.
Research and educational content only. Not investment advice.