BMW Ventures Q2 FY27 Results (NSE: BMWVENTLTD)
Signal: Margin pressure
The read
The key inflection is topline acceleration to 45.7% YoY from 19.6% in Q1FY27, but earnings quality is less convincing: EBITDA grew only 6.5% versus revenue growth of 45.7%, EBITDA margin fell 113bps to 3.08%, and H1 operating cash flow turned negative at ₹1,075.69 lakh as receivables and inventories expanded.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹731.26 Cr | +45.7% | +20.1% |
| EBIT | ₹20.77 Cr | +6.1% | |
| Net profit | ₹10.54 Cr | +48.1% | |
| EPS | ₹1.22 | +48.8% | |
| EBIT margin | 3.08% |
P&L walk
Standalone revenue increased 45.7% YoY to ₹73,126.28 lakh and PAT increased 48.1% to ₹1,053.68 lakh, but EBITDA margin declined to 3.08% from 4.21% as gross margin compressed 154bps and other expenses rose 29.8% YoY; negative H1 operating cash flow highlights working-capital intensity.
Segments
The company aggregates iron-and-steel trading, tractor distribution, PVC pipes, pre-engineered buildings, railway girders and equipment rentals into one operating segment, so the filing does not identify which activity drove the 45.7% YoY revenue increase.
Key positives
- Revenue increased 45.7% YoY to ₹73,126.28 lakh and 20.1% sequentially, accelerating from the prior quarter's 19.6% YoY growth.
- PAT increased 48.1% YoY to ₹1,053.68 lakh despite finance costs falling 39.6% to ₹580.73 lakh.
- H1 PAT rose 39.4% YoY to ₹2,111.37 lakh and basic EPS rose 48.8% YoY to ₹1.22.
- The company declared an interim dividend of ₹1.50 per share, with ₹1,300.73 lakh total payout.
Key concerns
- EBITDA grew only 6.5% YoY to an estimated ₹2,250.64 lakh against 45.7% revenue growth, while EBITDA margin contracted 113bps to 3.08%.
- Gross margin compressed 154bps YoY to 8.84% as raw material and trading costs rose to 91.18% of revenue from 89.62%; the filing does not disclose the cause.
- H1 operating cash flow was negative ₹1,075.69 lakh versus positive ₹1,016.99 lakh a year earlier, with trade receivables up ₹7,889.18 lakh and inventories up ₹4,583.62 lakh in the cash-flow bridge.
- Net debt increased to ₹28,921.11 lakh from ₹25,728.42 lakh at March 31, 2026.
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