Q1 2027 BMW Industries Ltd Earnings Call

August 17, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the BMWIL Industries Ltd. Q1 FY27 earnings conference call hosted by Arihant Capital Markets Ltd. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 1: Ladies and gentlemen, good day and welcome to BMW Industries Limited Q1 FY27 earnings conference call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Juhi Manwani from Arihant Capital Markets Limited. Thank you, and over to you.

Operator: Ladies and gentlemen, good day and welcome to BMW Industries Limited Q1 fiscal year 2027 earnings conference call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Juhi Manwani from Arihant Capital Markets Limited. Thank you, and over to you.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Ms. Juhi Manvani from Arihant Capital Markets Ltd. Thank you, and over to you.

Speaker #2: Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining the Q1 FY27 earnings conference call of BMW Industries.

Juhi Manwani: Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining into the Q1 FY2027 earnings conference call of BMW Industries. Today from the management, we have Mr. Harsh Bansal, Managing Director, Mr. Vikram Kapur, Chief Financial Officer, Mr. Sanjeev Sancheti, Investor Relations at Thomson Reuters. I will hand over the call to Mr. Harsh for his opening remarks. Over to you, sir.

Juhi Manwani: Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining into the Q1 fiscal year 2027 earnings conference call of BMW Industries. Today from the management, we have Mr. Harsh Bansal, Managing Director, Mr. Vikram Kapur, Chief Financial Officer, Mr. Sanjeev Sancheti, Investor Relations at Thomson Reuters. I will hand over the call to Mr. Harsh for his opening remarks. Over to you, sir.

Speaker #2: Today, from management, we have Mr. Harsh Bansal, Managing Director; Mr. Vikram Kapoor, Chief Financial Officer; and Mr. Sanjeev Sacheti from Investor Relations at UTIS Advisors. So, without any further delay, I will hand over the call to Mr. Harsh for his opening remarks.

Speaker #2: Over to you, sir.

Speaker #3: Good afternoon to all the participants. This is Sanjeev Sancheti. Before I hand over the call to Mr. Harsh Bansal for his opening remarks, I would like to draw your attention to the Safe Harbor statement included in the earnings presentation.

Sanjeev Sancheti: Good afternoon to all the participants. This is Sanjeev Sancheti. Before I hand over the call to Mr. Harsh Bansal for his opening remarks, I would like to draw your attention to the safe harbor statement included in the earnings presentation. I request all the participants to kindly review the same and have a good look at it prior to commencement of the session. Thank you, and over to Mr. Bansal.

Speaker #3: I request all the participants to kindly review the same and have a good look at it prior to the commencement of the session. Thank you, and over to Mr. Bansal.

Speaker #4: Thank you, sir. Good afternoon, everyone, and thank you for joining us for the BMWIL Industries Ltd. earnings call. For the first quarter of FY27, we are pleased to report a strong start to FY27, underpinned by healthy profit growth, improving utilizations across our downstream business, and continued progress on our strategic expansion.

Harsh Bansal: Thank you, sir. Good afternoon, everyone, and thank you for joining us for the BMW Industries Limited earnings call for the first quarter of FY2027. We are pleased to report a strong start to FY2027, underpinned by healthy profit growth, improving utilizations across our downstream business, and continued progress on our strategic expansion. Operating income for the quarter stood at INR 166.0 crores, representing a year-on-year growth of 11.6%. Gross profit was INR 112.7 crores with a gross profit margin expanding by 536 basis points year-on-year to 67.9%. Operating EBITDA increased by 7.1% year-on-year to INR 33.7 crores, translating into a margin of 20.3% compared with 21.2% in Q1 FY2026. While gross profit margin improved meaningfully, the operating EBITDA margin contracted due to a sharp increase in fuel prices arising from the conflict in the Middle East. Fuel prices have since moderated considerably.

Harsh Bansal: Thank you, sir. Good afternoon, everyone, and thank you for joining us for the BMW Industries Limited earnings call for the first quarter of fiscal year2027. We are pleased to report a strong start to fiscal year2027, underpinned by healthy profit growth, improving utilizations across our downstream business, and continued progress on our strategic expansion. Operating income for the quarter stood at INR 166.0 crore, representing a year-on-year growth of 11.6%. Gross profit was INR 112.7 crore with a gross profit margin expanding by 536 basis points year-on-year to 67.9%. Operating EBITDA increased by 7.1% year-on-year to INR 33.7 crore, translating into a margin of 20.3% compared with 21.2% in Q1 fiscal year2026. While gross profit margin improved meaningfully, the operating EBITDA margin contracted due to a sharp increase in fuel prices arising from the conflict in the Middle East. Fuel prices have since moderated considerably.

Speaker #4: Operating income for the quarter stood at ₹166.0 crore, representing a year-on-year growth of 11.6%. Gross profit was ₹112.7 crore, with the gross profit margin expanding by 536 basis points year-on-year to 67.9%.

Speaker #4: Operating EBITDA increased by 7.1% year-on-year to ₹33.7 crore, translating into a margin of 20.3%, compared with 21.2% in Q1 FY26. While gross profit margin improved meaningfully, the operating EBITDA margin contracted due to a sharp increase in fuel prices arising from the conflict in the Middle East.

Speaker #4: Fuel prices have since moderated considerably. Given the volatility witnessed during the quarter, we have also initiated discussions with our customers to incorporate gas prices into our price variation mechanisms.

Harsh Bansal: Given the volatility witnessed during the quarter, we have also initiated discussions with our customers to incorporate gas prices into our price variation mechanisms. This is aimed at mitigating the future impact of fluctuations, if any, in fuel costs and providing greater stability to our margins. Profit after tax grew 25.8% year-on-year to INR 19.1 crores, with the PAT margin improving 92 basis points to 10.8%. This performance ramped up across our downstream capacities. The rolling mill business achieved an annualized capacity utilization of approximately 83.5%, reflecting healthy demand and stronger volume absorption. While the pipes and tubes business operated at approximately 40.1%, with production increasing sequentially. With strong visibility across both businesses, we expect utilization and throughput to improve further, supporting operating leverage and sustained profitability growth. On the balance sheet, we remain focused on funding our growth ambitions while maintaining disciplined leverage and working capital management.

Harsh Bansal: Given the volatility witnessed during the quarter, we have also initiated discussions with our customers to incorporate gas prices into our price variation mechanisms. This is aimed at mitigating the future impact of fluctuations, if any, in fuel costs and providing greater stability to our margins. Profit after tax grew 25.8% year-on-year to INR 19.1 crore, with the PAT margin improving 92 basis points to 10.8%. This performance ramped up across our downstream capacities. The rolling mill business achieved an annualized capacity utilization of approximately 83.5%, reflecting healthy demand and stronger volume absorption. While the pipes and tubes business operated at approximately 40.1%, with production increasing sequentially. With strong visibility across both businesses, we expect utilization and throughput to improve further, supporting operating leverage and sustained profitability growth. On the balance sheet, we remain focused on funding our growth ambitions while maintaining disciplined leverage and working capital management.

Speaker #4: This is aimed at mitigating the future impact of fluctuations, if any, in fuel costs and providing greater stability to our margins. Profit after tax grew 25.8% year-on-year to ₹19.1 crores, with a PAT margin improving 92 basis points to 10.8%.

Speaker #4: This performance amped up across our downstream capacities. The rolling mill business achieved an annualized capacity utilization of approximately 83.5%, reflecting healthy demand and stronger volume absorption.

Speaker #4: While the PACTs and tubes business operated at approximately 40.1%, with production increasing sequentially. With strong visibility across both businesses, we expect utilization and throughput to improve further, supporting operating leverage and sustained profitability growth.

Speaker #4: On the balance sheet, we remain focused on funding our growth ambitions while maintaining disciplined leverage and working capital management. ROCE, as of 30 June 2026, stood at 9.5% and ROE at 9.4%, both on an annualized basis.

Harsh Bansal: ROCE as of 30 June 2026 stood at 9.5% and ROE at 9.4%, both on an annualized basis. These should be read in the context of the greenfield project. The capital drawdown for Bokaro is already reflected in our capital employed, while the plant is yet to be commissioned and has therefore not begun contributing to returns. This is a reflection of the transitory capital deployment phase we are currently in. As commissioning commences from Q2 FY27 and the facility ramps up, we expect ROCE to progressively improve. Net debt stood at INR 468.9 crores at a net debt-to-equity ratio of 0.57x, of which INR 222.4 crores represents long-term borrowings drawn for the Bokaro projects. Importantly, healthy and consistent operating cash flows enabled us to deploy INR 139.2 crores of internal accruals towards the expansion, taking total capital deployed to INR 341.6 crores.

Harsh Bansal: ROCE as of 30 June 2026 stood at 9.5% and ROE at 9.4%, both on an annualized basis. These should be read in the context of the greenfield project. The capital drawdown for Bokaro is already reflected in our capital employed, while the plant is yet to be commissioned and has therefore not begun contributing to returns. This is a reflection of the transitory capital deployment phase we are currently in. As commissioning commences from Q2 fiscal year27 and the facility ramps up, we expect ROCE to progressively improve. Net debt stood at INR 468.9 crore at a net debt-to-equity ratio of 0.57x, of which INR 222.4 crore represents long-term borrowings drawn for the Bokaro projects. Importantly, healthy and consistent operating cash flows enabled us to deploy INR 139.2 crore of internal accruals towards the expansion, taking total capital deployed to INR 341.6 crore.

Speaker #4: These should be read in the context of the Greenfield project. The capital drawdown for Bocaro is already reflected in our capital employed, while the plant is yet to be commissioned and has therefore not begun contributing to returns.

Speaker #4: This is a reflection of the transitory capital deployment phase we are currently in, as commissioning commences from Q2 FY27 and the facility ramps up.

Speaker #4: We expect ROC to progressively improve. Net debt stood at ₹468.9 crore at a net debt-to-equity ratio of 0.57x, of which ₹222.4 crore represents long-term borrowings drawn for the Bocaro projects.

Speaker #4: Importantly, healthy and consistent operating cash flows enabled us to deploy ₹139.2 crore of internal accruals toward the expansion, taking total capital deployed to ₹341.6 crore.

Speaker #4: Looking ahead, our next phase of growth will be driven by the optimal utilization of our existing capacity across the conversion business, alongside the new downstream capacities being established at Bocaro.

Harsh Bansal: Looking ahead, our next phase of growth will be driven by the optimal utilization of our existing capacity across the conversion business, alongside the new downstream capacities being established at Bokaro. As communicated earlier, the company will operate a balanced business model, integrating our traditional conversion business with a proprietary supply model, wherein we will source input materials directly and supply finished products, capturing greater value across the chain by diversifying our customer base. We reiterate our earlier guidance of approximately 70% to 75% consolidated revenue CAGR over FY25 to FY28, supported by a phased commissioning and ramp-up of Bokaro, alongside continued strategic organic growth across our existing verticals. Over the same period, we expect operating EBITDA and PAT to grow at a CAGR of approximately 40% to 45% and 35% to 40%, respectively.

Harsh Bansal: Looking ahead, our next phase of growth will be driven by the optimal utilization of our existing capacity across the conversion business, alongside the new downstream capacities being established at Bokaro. As communicated earlier, the company will operate a balanced business model, integrating our traditional conversion business with a proprietary supply model, wherein we will source input materials directly and supply finished products, capturing greater value across the chain by diversifiscal yearing our customer base. We reiterate our earlier guidance of approximately 70% to 75% consolidated revenue CAGR over fiscal year25 to fiscal year28, supported by a phased commissioning and ramp-up of Bokaro, alongside continued strategic organic growth across our existing verticals. Over the same period, we expect operating EBITDA and PAT to grow at a CAGR of approximately 40% to 45% and 35% to 40%, respectively.

Speaker #4: As communicated earlier, the company will operate a balanced business model, integrating our traditional conversion business with a proprietary supply model. In this model, we will source input materials directly and supply finished products, capturing greater value across the chain by diversifying our customer base.

Speaker #4: We reiterate our earlier guidance of approximately 70% to 75% consolidated revenue for FY25 to FY28, supported by the phased commissioning and ramp-up of Bocaro, alongside continued strategic organic growth across our existing verticals.

Speaker #4: Over the same period, we expect operating EBITDA and PACT to grow at a CAGR of approximately 40 to 45 percent and 35 to 40 percent, respectively, with EBITDA and PACT margins gradually stabilizing at approximately 12 to 13 percent and 5 to 6 percent by FY28.

Harsh Bansal: With EBITDA and PAT margins gradually stabilizing at approximately 12% to 13% and 5% to 6% by FY28. As the benefits of scale integration and operating leverage materialize. As we move forward, we remain focused on the disciplined execution of our expansion initiatives, improving operational efficiencies, and deepening our value-added product portfolio with a clear focus on sustainable growth, prudent capital deployment, and balance sheet discipline. We remain committed to creating enduring long-term value for all our stakeholders. With that, I will now open the floor for questions. Thank you.

Harsh Bansal: With EBITDA and PAT margins gradually stabilizing at approximately 12% to 13% and 5% to 6% by fiscal year28. As the benefits of scale integration and operating leverage materialize. As we move forward, we remain focused on the disciplined execution of our expansion initiatives, improving operational efficiencies, and deepening our value-added product portfolio with a clear focus on sustainable growth, prudent capital deployment, and balance sheet discipline. We remain committed to creating enduring long-term value for all our stakeholders. With that, I will now open the floor for questions. Thank you.

Speaker #4: As the benefits of scale integration and operating leverage materialize, as we move forward, we remain focused on the disciplined execution of our expansion initiatives, improving operational efficiencies, and deepening our value-added product portfolio, with a clear focus on sustainable growth, prudent capital deployment, and balance sheet discipline.

Speaker #4: We remain committed to creating enduring, long-term value for all our stakeholders. With that, I will now open the floor for questions. Thank you.

Speaker #2: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bhavesh, an individual investor. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bhavesh, an individual investor. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from Bhavesh, an individual investor.

Speaker #2: Please go ahead.

Speaker #5: Good afternoon, Mr. Bansal, congratulations on a good set of results. Sir, regarding our growth trajectory, we posted a stable top line of around ₹166 crore in this quarter, so a high growth CAGR target of around 75 percent has been highlighted by the management.

[Company Representative]: Good afternoon, Mr. Vasant. Congratulations on a good set of results. Sir, regarding our growth trajectory, we posted a stable top line of around INR 166 crore in this quarter. Sir, high growth of CAGR target of around 75% is highlighted by the management. Based on this Q1 baseline, what kind of quarterly run rate or volume ramp-up are we factoring for the H2 of the year to approach aggressive annual targets? Correct me if I'm wrong, are we going to do roughly upwards of INR 1,400, INR 1,500 crores of revenue this year to achieve the figure?

[Shareholder] (Private Investor): Good afternoon, Mr. Vasant. Congratulations on a good set of results. Sir, regarding our growth trajectory, we posted a stable top line of around INR 166 crore in this quarter. Sir, high growth of CAGR target of around 75% is highlighted by the management. Based on this Q1 baseline, what kind of quarterly run rate or volume ramp-up are we factoring for the H2 of the year to approach aggressive annual targets? Correct me if I'm wrong, are we going to do roughly upwards of INR 1,400, INR 1,500 crore of revenue this year to achieve the figure?

Speaker #5: So, based on this Q1 baseline, what kind of quarterly run rate or volume ramp-up are we factoring in for the second half of the year?

Speaker #5: To approach aggressive annual targets—so, correct me if I'm wrong—are we going to do roughly upwards of, like, ₹1,400 to ₹1,500 crore of revenue this year to achieve the figure?

Speaker #4: Hi Bhavesh ji, welcome back. It's so good to have you again. I mean, we have not commented individually on the FY27 numbers, so I would refrain from doing that.

Harsh Bansal: Hi, Bhavesh. Welcome back. So good to have you again. We have not commented individually on the FY27 numbers, and I would refrain from doing that. The guidance remains on track for FY28. Like I mentioned in my opening statement, we will be commissioning the color-coated segment of our product offering this quarter, and this will continue to ramp up, let's say, over the next six quarters, which is FY28. Over the subsequent quarters, we'll be also commissioning the cold rolling and the Galvalume line. So the FY28 numbers will come to reflect a consolidated of everything ramp-up. But I will refrain from giving a specific guidance for FY27.

Harsh Bansal: Hi, Bhavesh. Welcome back. So good to have you again. We have not commented individually on the fiscal year27 numbers, and I would refrain from doing that. The guidance remains on track for fiscal year28. Like I mentioned in my opening statement, we will be commissioning the color-coated segment of our product offering this quarter, and this will continue to ramp up, let's say, over the next six quarters, which is fiscal year28. Over the subsequent quarters, we'll be also commissioning the cold rolling and the Galvalume line. So the fiscal year28 numbers will come to reflect a consolidated of everything ramp-up. But I will refrain from giving a specific guidance for fiscal year27.

Speaker #4: The guidance remains on track for FY28. Like I mentioned in my opening statement, we will be commissioning the color-coated segment of our product offering this quarter.

Speaker #4: And this will continue to ramp up, let's say, over the next six quarters, which is FY28. Over the subsequent quarters, we'll also be commissioning the cold rolling and the galvalume line.

Speaker #4: And, you know, so the FY28 numbers will come to reflect the consolidation of everything ramping up. But I will refrain from giving a specific guidance for FY27.

Speaker #5: Okay, sir. Sir, coming to the trade receivables, in the previous quarter management noted that customer payments were delayed, and it would be realized by Q1 FY27.

[Company Representative]: Okay, sir. Sir, coming on the trade receivables. In the previous quarter, management noted that customer payment was delayed, and it would be realized by Q1 FY27. So have we successfully realized the full pending receivables from that specific client this quarter?

[Shareholder] (Private Investor): Okay, sir. Sir, coming on the trade receivables. In the previous quarter, management noted that customer payment was delayed, and it would be realized by Q1 fiscal year27. So have we successfully realized the full pending receivables from that specific client this quarter?

Speaker #5: So, have we successfully realized the full pending receivables from that specific client this quarter?

Speaker #4: Yeah, yeah. I mean, that is a standard model, as I mentioned. We typically tend to get it in the first week, 10 days, or two weeks of the quarter starting.

Harsh Bansal: Yeah. I mean, that is a standard model, as I had mentioned, that we typically tend to get it in the first week, 10 days, two weeks of the quarter starting, and the same cycle repeats even at the end of June. And again, the beginning of this quarter, we received everything.

Speaker #4: And the same cycle repeats, even at the end of June. So, you know, and again, at the beginning of this quarter, we received everything.

Speaker #5: Good to hear that, sir. Sir, on the greenfield downstream plant at Bocaro, how is the company's Q2 looking? Since we are halfway through August, how is the demand for our products in the country, and are any exports already planned?

[Company Representative]: Good to hear that, sir. On the greenfield downstream plant at Bokaro, how is the company's Q2 looking? Since we are halfway through August, how is the demand for our products in the country and any exports already planned?

[Shareholder] (Private Investor): Good to hear that, sir. On the greenfield downstream plant at Bokaro, how is the company's Q2 looking? Since we are halfway through August, how is the demand for our products in the country and any exports already planned?

Speaker #4: No exports planned for now, Bhavesh ji, but again, I will refrain from commenting on Q2. Let's focus this call on Q1. Thank you.

Harsh Bansal: No exports planned for now, Bhaveshji. But again, I will refrain from commenting on Q2. Let's focus this call on Q1. Thank you.

Speaker #5: Okay, sir. I will come back in the queue. Thank you.

[Company Representative]: Okay, sir. I will come back in the queue. Thank you.

[Shareholder] (Private Investor): Okay, sir. I will come back in the queue. Thank you.

Speaker #4: Of course. Thank you so much, Bhavesh ji.

Harsh Bansal: Of course. Thank you so much, Bhavesh.

Speaker #2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. A reminder to all participants: please press star and 1 to ask a question.

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one to ask a question. A reminder to all the participants to press star and one to ask a question. The next question is on the line of Uttam Reddy, an individual investor. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one to ask a question. A reminder to all the participants to press star and one to ask a question. The next question is on the line of Uttam Reddy, an individual investor. Please go ahead.

Speaker #2: A reminder to all participants to press star and 1 to ask a question. The next question is from the line of Utam Reddy, an individual investor.

Speaker #2: Please go ahead.

Speaker #5: Sir, good afternoon. Congratulations on getting the Bokaro plant up and running. Can you maybe tell us in how many quarters down the line we’ll start seeing a ₹500 crore top line?

Uttam Reddy: Good afternoon. Congratulations on getting the Bokaro plant up and running. Can you maybe tell us in how many quarters down the line that we'll start seeing like a INR 500 crore top line?

Harsh Bansal: Hi, Uttamji. Again, I don't want to give a specific guidance on numbers in the short term. This is a 150,000 tons line, and I would guess it'll take us at least three to four quarters to ramp it up all the way.

Speaker #4: Hi, Utam ji. Again, you know, I don't want to give a specific guidance on numbers. In the short term, this is a 150,000-tons line, and, you know, I would guess it'll take us at least three to four quarters to ramp it up all the way.

Speaker #5: Okay, sir. Thank you so much. Thank you very much.

Uttam Reddy: Okay, sir. Thank you so much.

Harsh Bansal: Thank you.

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one on their touchtone telephone to ask a question. The next question is from the line of Bhavesh, an individual investor. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one on their touchtone telephone to ask a question. The next question is from the line of Bhavesh, an individual investor. Please go ahead.

Speaker #4: Thanks. Thank you, sir.

Speaker #2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. A reminder to all the participants: please press star and 1 on your touchtone telephone to ask a question.

Speaker #2: The next question is from the line of Bhavesh, an individual investor. Please go ahead.

Speaker #5: Thank you for the follow-up, sir. Given the increased input and freight costs stemming from the Iran war, does the company have a competitive advantage to pass on these higher costs in new contracts, which could potentially improve margin performance in FY27 and beyond?

[Company Representative]: Thank you for the follow-up, sir. Given the increased input and freight costs stemming from the Iran war, does the company have a competitive advantage to pass on these higher costs in new contracts, which could potentially improve margin performance in FY27 and beyond?

[Shareholder] (Private Investor): Thank you for the follow-up, sir. Given the increased input and freight costs stemming from the Iran war, does the company have a competitive advantage to pass on these higher costs in new contracts, which could potentially improve margin performance in fiscal year27 and beyond?

Speaker #4: So, two parts of your question, Bhavesh ji. The increased cost of fuel and power—yes, that has affected us. But I guess that has also affected everybody else in the industry.

Harsh Bansal: Two parts of your question, Bhavesh. The increased cost of fuel and power, yes, that has affected us, but I guess that's also affected everybody else in the industry. It's fairly leveled the playing field. In terms of passing it on to the customer, like I mentioned in the opening remarks, we are in talks with our customer to create a fair mechanism to avoid this extreme volatility in the future. I don't think it'll create any competitive advantage per se because in my view, it's going to be a level playing field. When the prices increase for oil or gas, they increase for everyone. I'm not sure if I've answered the question.

Speaker #4: So it's, you know, fairly level, the playing field. In terms of passing it on to the customer, like I mentioned in the opening remarks, we are in talks with our customer to create a fair mechanism to avoid this extreme volatility in the future.

Speaker #4: And I don't think it'll create any competitive advantage per se, because in my view, it's going to be a level playing field. When the prices increase for oil or gas, they increase for everyone.

Speaker #4: So, I'm not sure if I've answered the question, but...

[Company Representative]: Understood. Yes, sir.

[Shareholder] (Private Investor): Understood. Yes, sir.

Speaker #5: Understood, sir. Yes, sir.

Speaker #4: Of course. Thank you, sir.

Harsh Bansal: Thank you, sir.

Speaker #5: Sir, next is on the DAM products. So, given that the quoted products like ZAM require specialized bath chemistry, precise thermal control, and high technical entry barriers compared to the standard galvanized sheets, what constitutes a sustainable competitive moat here?

[Company Representative]: Sir, next is on the ZAM products. Given that the coated products like ZAM require specialized bath chemistry, precise thermal control, and higher technical entry barriers compared to the standard galvanized sheets, what constitutes our sustainable competitive moat here? Is it protected by proprietary process parameters, long-term technical arrangement, or sticky customer integration in high-margin sectors like solar and automotive?

[Shareholder] (Private Investor): Sir, next is on the ZAM products. Given that the coated products like ZAM require specialized bath chemistry, precise thermal control, and higher technical entry barriers compared to the standard galvanized sheets, what constitutes our sustainable competitive moat here? Is it protected by proprietary process parameters, long-term technical arrangement, or sticky customer integration in high-margin sectors like solar and automotive?

Speaker #5: So, is it protected by proprietary process parameters, long-term technical arrangements, or sticky customer integration in high-margin sectors like solar and automotive?

Speaker #4: So, you rightly said that it does require very close control of operating parameters. I think we've been doing that fairly well with galvanizing for a longer period of time, for almost about 14 years now.

Harsh Bansal: Well, you rightly said that it does require very close control of operating parameters. I think we've been doing that fairly well with galvanizing for a longer period of time, for almost about 14 years now. There is a certain amount of confidence that we'll be able to do it. That is one. The second part of your question with respect to competitive advantage or moat, as you called it, we don't have the customers in that segment right now, so stickiness will get built over a period of time. I think our confidence arises from the fact that we will be offering a full basket or bouquet of products and not just ZAM. When you talk about coated products, there are essentially three kind of coated products in the Indian market. You've got Galvalume, Galvanized, and ZAM.

Speaker #4: So, there is a certain amount of confidence that we'll be able to do it. That is one. The second part of your question, with respect to competitive advantage — or moat, as you called it — you know, we don't have the customers in that segment right now, so stickiness will get built over a period of time.

Speaker #4: I think our confidence arises from the fact that we will be offering a full basket, or bouquet, of products and not just ZAM. So, when you talk about quoted products, there are essentially three kinds of quoted products in the Indian market.

Speaker #4: You've got Galvalium, Galvanize, and ZAM. And we will be in a position to offer all three products in the top range, or whatever is available in the country.

Harsh Bansal: And we will be in a position to offer all three products in the top range or whatever is available in the country. I do feel that this will create a fair bit of stickiness for our products.

Speaker #4: So, I do feel that this will create a fair bit of stickiness for our products.

Speaker #5: That was helpful, sir. So, my next question is on the quality certifications. To target high-end institutional automotive clients, which require IATF 16949 certification and global supply chains from the new Bocaro unit, what is the status of our quality accreditations, such as ISO 9001, 14001, 45001, and 17025?

[Company Representative]: That was helpful, sir. My next question is on the quality certifications. As we target high-end institutional automotive, which require IATF 16949 certification and global supply chains from the new Bokaro unit, what is the status of our quality accreditations such as ISO 9001, 14001, 45001, and 17025? Have we applied for any of these certifications or what is the expected timeline for the same?

[Shareholder] (Private Investor): That was helpful, sir. My next question is on the quality certifications. As we target high-end institutional automotive, which require IATF 16949 certification and global supply chains from the new Bokaro unit, what is the status of our quality accreditations such as ISO 9001, 14001, 45001, and 17025? Have we applied for any of these certifications or what is the expected timeline for the same?

Speaker #5: Have we applied for any of these certifications, or what is the expected timeline?

Speaker #4: So, it's too early because we are still in the project stage. It's very early to apply for any certifications. These will only be done once the plant is commissioned and up and running.

Harsh Bansal: It is too early because we are still in the project stage. It is very early to apply for any certifications. These will only be done once the plant is commissioned and up and running and stabilized.

Speaker #4: And stabilized.

Speaker #5: Got it, sir. I'll get back in the queue for this.

[Company Representative]: Got it, sir. I will get back in the queue.

[Shareholder] (Private Investor): Got it, sir. I will get back in the queue.

Speaker #4: Thank you. Thank you, Bhavesh ji.

Harsh Bansal: Thank you, Bhaveshji.

Speaker #2: Thank you. A reminder to all the participants to press star and 1 to ask a question. Ladies and gentlemen, if you wish to ask a question, you may press star and 1 on your touch-tone telephone.

Operator 2: Thank you. A reminder to all the participants to press star and one to ask a question. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchtone telephone. The next question is from the line of Shashwat Jalan from NV Alpha. Please go ahead.

Operator: Thank you. A reminder to all the participants to press star and one to ask a question. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchtone telephone. The next question is from the line of Shashwat Jalan from NV Alpha. Please go ahead.

Speaker #2: The next question is from the line of Ashwin Jalan from NV Alpha. Please go ahead.

Shashwat Jalan: Hi, sir. Thank you for the opportunity. I wanted to understand, mostly from a demand-supply landscape in our upcoming Bokaro project, with respect to the color coating and the ZAM products. The context behind the question is that, I think we can see there are a few more capacities announced by various other industry players, and specifically within the eastern region as well. What I wanted to understand is what is the demand-supply situation currently that we are seeing, and with this surge in capacity coming in the next one to three years, in specific eastern region, if I have to say. How do you see the demand-supply balance? A follow-up on that would be, in terms of the end user industry.

Sashwat Jalan: Hi, sir. Thank you for the opportunity. I wanted to understand, mostly from a demand-supply landscape in our upcoming Bokaro project, with respect to the color coating and the ZAM products. The context behind the question is that, I think we can see there are a few more capacities announced by various other industry players, and specifically within the eastern region as well. What I wanted to understand is what is the demand-supply situation currently that we are seeing, and with this surge in capacity coming in the next one to three years, in specific eastern region, if I have to say. How do you see the demand-supply balance? A follow-up on that would be, in terms of the end user industry. I believe roofing and cladding would be one application, but beyond that, how do you see that, if you could quantifiscal year and add some color on this? Thanks.

Speaker #6: Hi. Hi, sir. Thank you for the opportunity. Sir, I wanted to understand, mostly from a demand-supply landscape, in our upcoming Bocaro project with respect to the Kannur, Kodim, and the galvanized products. So, the context behind the question is that I think we can see there are a few more capacities announced by various other industry players.

Speaker #6: And specifically within the eastern region as well, what I wanted to understand is: what is the current demand-supply situation that we are seeing?

Speaker #6: And with this surge in capacity coming in the next 1 to 3 years, specifically in the Eastern region, if I have to say, how do you see the demand-supply balance?

Speaker #6: And a follow-up on that would be: in terms of the end-user industry, I believe roofing and cladding would be one application. But beyond that, how do you see that? If you could quantify and add some color on this.

Shashwat Jalan: I believe roofing and cladding would be one application, but beyond that, how do you see that, if you could quantify and add some color on this? Thanks.

Speaker #6: Thanks.

Speaker #4: Thank you, thank you for that question, Ashwin ji. You know, for the first time in a very long time, we are seeing a higher-than-GDP increase in steel consumption.

Harsh Bansal: Thank you for that question, Shashwat Ji. For the first time in a very long time, we are seeing a higher than GDP increase in steel consumption. If we look at our GDP growth at about 7.2%, you add about 3% to 4% of inflation, you are looking at about a 10-odd percent, 11-odd percent real growth. But out of that, today, we are actually seeing a 10%-plus growth in steel consumption. That is one side of it. This is largely driven by, I would like to say, very strong government infrastructure spends. But I do not want to take the credit away from the private sector investments, which are also happening at a fairly large, fairly quick pace.

Speaker #4: So, if we, you know, if we look at our GDP growth at about 7–7.2 percent, and you add about 3 to 4 percent of inflation, you're looking at about a 10–11 percent real growth.

Speaker #4: But out of that, today we are actually seeing a 10% plus growth in steel consumption. So that's one side of it.

Speaker #4: And this is largely driven by, I would like to say, very, very strong government infrastructure spends. But I don't want to take the credit away from the private sector investments, which are also happening at a fairly large, fairly quick pace.

Speaker #4: If you look at the demand and supply position going forward over the next couple of years—three years, four years, five years—I think this momentum will sustain comfortably.

Harsh Bansal: If you look at the demand and supply position going forward over the next couple of years, three years, four years, five years, I think this momentum will sustain comfortably. Specifically for the East, I would like to believe that from a growth in the economy point of view, we have got a lot of catching up to do. So a lot of the demand will, at least I hope, will get generated from East, whether it is rural housing, warehousing, industrial buildings, so on and so forth. So that is pretty much for the color-coated roofing cladding sector that you spoke about. This, combined with the government's anti-dumping and QCO orders, has created a serious opportunity for domestic players. You add to that the PLI, you add to that import substitution. So there is a case to be made for higher consumption of color-coated products.

Speaker #4: Specifically for the East, I would like to believe that from a growth-in-the-economy point of view, we've got a lot of catching up to do.

Speaker #4: And so a lot of the demand will—at least I hope—be generated from the East, whether it's rural housing, warehousing, industrial buildings, and so on and so forth.

Speaker #4: So that's pretty much it for the colored, color-coated roofing and cladding sector that you spoke about. This, combined with the government's anti-dumping and QCO orders, has created a serious opportunity for domestic players.

Speaker #4: You know, you add to that the PLI, you add to that import substitution. So, there is a case to be made for higher consumption of color-coated products.

Speaker #4: I think if you look at the rest of the coating sorry, the coated universe, whether it's Galvalium, Galvanized, or ZAM, there was an order passed by the MMRE, I think, a couple of months back, which for the first time has encouraged the use of ZAM for rooftop solar.

Harsh Bansal: I think if you look at the rest of the coated universe, whether it is Galvalume, galvanized or ZAM, there was an order passed by the MNRE, I think a couple of months back, which for the first time has encouraged the use of ZAM for rooftop solar. Before this, you were using galvanized products, but you were asking for a very high galvanizing content to last long. The only way to kind of rationalize the cost on that front is to use ZAM products, and I am happy to note that the government is coming around to encouraging the use of that. You look at pre-galvanized pipes, I mean structural tubes, pipes as a sector. You look at PEBs, which are more and more using pre-galvanized, pre-formed purlins and sections. There is a substantial growth in that downstream sector.

Speaker #4: अभी तक क्या था, that, you know, you were using galvanized products, but you were asking for a very, very high galvanizing content to last long.

Speaker #4: The only way to kind of rationalize the cost on that front is to use ZAM products. And I'm happy to note that the government is coming around to encouraging the use of that.

Speaker #4: You look at pre-galvanized pipes—I mean, structural tubes and pipes—as a sector. You look at PEBs, which are more and more using pre-galvanized, pre-formed purlins and sections.

Speaker #4: There is substantial growth in that downstream sector. In India, I think they are producing close to about 165 or 170-odd million tons of steel.

Harsh Bansal: India, I think we are producing close to about 165, 170-odd million tons of steel. The plans that we have all been reading from the Big Four or the Big Five show a very encouraging trend of moving towards maybe 250-odd million tons over the next half a decade. Now, all of that steel is going to be value-added in one form or the other. Whether it is hot rolled coils or billets and blooms, they are not used as is. They are all value-added. They are all value-added in one form or the other, and therein kind of lies the opportunity for downstream players like us. What we are setting up in Bokaro to begin with is in some ways the lowest hanging fruit, because we clearly see a gap in what the market wants or will be wanting over the next two or three years, and what the industry has to offer today.

Speaker #4: The plans that we've all been reading from the Big Four or the Big Five show a very encouraging trend of moving towards maybe 250-odd million tons over the next half a decade.

Speaker #4: Now, all of that steel is going to be value-added in one form or the other. You know, whether it's hot-rolled coils or billets and blooms, they're not used as-is.

Speaker #4: They're all value-added. They're all value-added in one form or another, and therein, kind of, lies the opportunity for downstream players like us. What we are setting up in Bocaro, to begin with, is in some ways the lowest-hanging fruit.

Speaker #4: Because we clearly see a gap in what the market wants, or will be wanting over the next two or three years, and what the industry has to offer today.

Speaker #4: So, I think going forward, this can only improve.

Harsh Bansal: I think going forward, this can only improve.

Speaker #6: Awesome. Thanks for that; that was very helpful. Just to get to the last part that you touched upon in terms of the low-hanging fruit.

Shashwat Jalan: Thanks for that. This was very helpful. Just on the last part that you touched upon in terms of the low-hanging fruit.

Sashwat Jalan: Thanks for that. This was very helpful. Just on the last part that you touched upon in terms of the low-hanging fruit.

Speaker #2: Sorry to interrupt you, sir. Your voice is breaking.

Operator 2: Sorry to interrupt you, sir. Your voice is breaking.

Operator: Sorry to interrupt you, sir. Your voice is breaking.

Speaker #6: Hi. Am I audible now?

Shashwat Jalan: Hi. Am I audible now?

Sashwat Jalan: Hi. Am I audible now?

Speaker #4: Perfect. Thank you.

Harsh Bansal: Perfect. Thank you.

Operator 2: Yes, sir. It is better.

Operator: Yes, sir. It is better.

Speaker #2: It's better.

Speaker #6: Hello.

Shashwat Jalan: Hello.

Sashwat Jalan: Hello.

Speaker #4: Yeah, yeah. Perfect, thank you. Please continue, Ashwin ji.

Harsh Bansal: Yeah. Perfect. Thank you. Please continue, Shashwat Ji.

Speaker #6: Yes. So, just on the last part, to extend that on the low-hanging fruit bit, sir, I think obviously there is a wide spread in the end product that we are offering.

Shashwat Jalan: Yes. Just on the last part, to extend that on the low-hanging fruit bit. Sir, I think, obviously, there is a wide scope in the end product that we are offering when we look at the large steel players versus us. Specifically, I wanted to understand just the size of the opportunity that would be for us in that specific space. If you can have any quantification in terms of what kind of demand and what percentage of the demand would we be meeting with our greenfield capacity.

Sashwat Jalan: Yes. Just on the last part, to extend that on the low-hanging fruit bit. Sir, I think, obviously, there is a wide scope in the end product that we are offering when we look at the large steel players versus us. Specifically, I wanted to understand just the size of the opportunity that would be for us in that specific space. If you can have any quantification in terms of what kind of demand and what percentage of the demand would we be meeting with our greenfield capacity.

Speaker #6: And we look at the large steel players versus us. So specifically, I wanted to understand just the size of the opportunity that would be for us in that specific space.

Speaker #6: If you can, do you have any quantification in terms of what kind of demand and what percentage of the demand we would be meeting with our greenfield capacity?

Speaker #4: Ashwin ji, the investor presentation that we have uploaded on the sites has a very detailed description of the, you know, the market size, etc.

Harsh Bansal: Shashwat Jalan, the investor presentation that we have uploaded on the site has a very detailed description of the market size, et cetera. In terms of how much of it will we be meeting, if you look at our market size and India producing about 160, 170 million tons of steel, I generally assume about 50% of that is long products. You take about 80 to 85 million tons of flat products. Even if you take pipes and tubes, roofing and cladding, prefabricated structures for purlins and buildings, my total throughput from Bokaro is about half a million tons.

Speaker #4: In terms of how much of it we will be meeting, if you look at the market size and India producing about 160 to 170 million tons of steel, I generally assume about 50 percent of that is long products.

Speaker #4: So you take about 80 to 85 million tons of flat products. Even if you take pipes and tubes, roofing and cladding, prefabricated structures for purlins and buildings, you know, my total throughput from Bocaro is about half a million tons.

Speaker #4: So, you know, when we are talking about 160 million growing to 250 million, 50–60 percent of that is flat products, you know. Yeah, talking about half a million feels really small, yaar.

Harsh Bansal: When we are talking about 160 million growing to 250 million, 50%, 60% of that is flat products. So, I think for us, this is kind of getting our foot in the door and understanding the market. But this will surely allow us to grow further depending on where the demand rises. To begin with, the reason why we are setting up the project in the way that we are doing is because we are able to control not just our cost from HR to coated, but also the entire quality chain. And that's something that gives us a lot of confidence.

Speaker #4: So, I think for us, this is kind of getting our foot in the door and understanding the market. But this will surely allow us to, you know, grow further depending on where the demand rises.

Speaker #4: To begin with, the reason why we are setting up the project in the way that we are doing is because we are able to control not just our costs, from HR to coating, but also the entire quality chain.

Speaker #4: And that is, you know, that's something that gives us a lot of confidence.

Speaker #6: That's nice. Thank you. I appreciate it.

Shashwat Jalan: Thanks. Appreciate it.

Sashwat Jalan: Thanks. Appreciate it.

Speaker #4: Thank you, Ashwin ji.

Harsh Bansal: Thank you, Shashwat Jalan.

Speaker #2: Thank you. The next question is from the line of Uttam Reddy, an individual investor. Please go ahead.

Operator 2: Thank you. The next question is from the line of Uttam Reddy, an individual investor. Please go ahead.

Operator: Thank you. The next question is from the line of Uttam Reddy, an individual investor. Please go ahead.

Speaker #6: Well, sir, thank you for taking my question again. Now that the color-coated line is up and running, have we capitalized this asset?

Uttam Reddy: Thank you for taking my question again. Now that the color coated line is up and running, have we capitalized this asset?

Speaker #4: So, it will be capitalized in Q2. It's not yet started; it's going to be started very, very soon. The hot trials are on.

Harsh Bansal: It will be capitalized in Q2. It is not yet started. It is going to be started very soon. The hot trials are on, and it will be capitalized in Q2.

Speaker #4: And it will be capitalized in Q2. Thank you, ji.

Uttam Reddy: Okay. Thank you, sir. Thank you so much.

Harsh Bansal: Thank you.

Speaker #2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. A reminder to all participants to press star and 1 to ask a question.

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Bhavesh, an individual investor. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Bhavesh, an individual investor. Please go ahead.

Speaker #2: The next question is from the line of Bhavesh, an individual investor. Please go ahead.

Speaker #6: Thank you again for the opportunity. So, sir, with recent trade developments like the UK-India FTA opening up, tariff-free entry for certain steel and value-added metal product exports into the UK, is the company actively eyeing the export market of the UK for upcoming specialty product lines?

[Company Representative]: Thank you again for the opportunity. Sir, with recent trade developments like the UK India FTA opening up, tariff free entry for certain steel and value added metal product exports into UK, is the company actively eyeing the export market of UK for upcoming speciality product lines, or is our primary focus strictly on the domestic for the near term?

[Shareholder] (Private Investor): Thank you again for the opportunity. Sir, with recent trade developments like the UK India FTA opening up, tariff free entry for certain steel and value added metal product exports into UK, is the company actively eyeing the export market of UK for upcoming speciality product lines, or is our primary focus strictly on the domestic for the near term?

Speaker #6: Or is our primary focus strictly on the domestic market for the near term?

Speaker #4: So I think it would be fair to say that, to begin with, the focus is only domestic. We are not focusing on UK exports.

Harsh Bansal: I think it would be fair to say that, to begin with, the focus is only domestic. We are not focusing on UK exports. But of course, a lot of these things will present themselves opportunistically, and we will see how that goes. Just to be clear, I am not losing sleep over the FTA.

Speaker #4: But, of course, a lot of these things will present themselves opportunistically, and we'll see how that goes. You know, that's just to say that I'm not losing sleep over the FTA.

Speaker #6: Okay, sir, one last thing. As a shareholder of the company, I wanted to understand what's the management's vision for the next, say, 24 to 48 months.

[Company Representative]: Okay. Sir, last one thing. As a shareholder of the company, I wanted to understand what is the management's vision for the next, say, 24 to 48 months. Since I read your article in Business Standard. In that, you had mentioned that you are expecting around 4 to 4.5 thousand crore of revenue from this new Bokaro plant by FY30. The total revenue, including the legacy business, which is going on right now, which constitutes around 700, 650 crores revenue from this legacy business. Can we expect after three, four years, BMW Industries would be doing around 5,000 crores? I just wanted to

[Shareholder] (Private Investor): Okay. Sir, last one thing. As a shareholder of the company, I wanted to understand what is the management's vision for the next, say, 24 to 48 months. Since I read your article in Business Standard. In that, you had mentioned that you are expecting around 4 to 4.5 thousand crore of revenue from this new Bokaro plant by fiscal year30. The total revenue, including the legacy business, which is going on right now, which constitutes around 700, 650 crore revenue from this legacy business. Can we expect after three, four years, BMW Industries would be doing around 5,000 crore? I just wanted to

Speaker #6: Since I read your article in Business Standard, so in that, you had mentioned that you are expecting around 4 to 4.5 thousand crore revenue from this new Bocaro plant by FY 30.

Speaker #6: And so, the total revenue, including the legacy business—which is ongoing right now—constitutes around 650 to 700 crores in revenue from this legacy business.

Speaker #6: So, can we expect that after three to four years, BMW Industries would be doing around ₹5,000 crores? I just wanted to check.

Speaker #4: So that is, that is the, so you know, of course, when you talk about FY30 and all, it's not unfair to say that that's something which we will be aspiring to achieve.

Harsh Bansal: When you talk about FY30 and all, it is not unfair to say that that is something which we will be aspiring to achieve. It is possible.

Harsh Bansal: When you talk about fiscal year30 and all, it is not unfair to say that that is something which we will be aspiring to achieve. It is possible.

Speaker #4: And it's it is possible.

Speaker #6: And any other vision which the management wants to guide for—wants to take the company to that level? Because it's been a very long time; long-term shareholders haven't been rewarded yet.

[Company Representative]: Any other vision which the management wants to guide for, wants to take the company at that level? Because it has been a very long time, long-term shareholders have not been rewarded yet, and the company is doing quite well. Apart from dividend or maybe some kind of share buyback in the future or maybe some sort of anything which the management wants to take the company to a next level.

[Shareholder] (Private Investor): Any other vision which the management wants to guide for, wants to take the company at that level? Because it has been a very long time, long-term shareholders have not been rewarded yet, and the company is doing quite well. Apart from dividend or maybe some kind of share buyback in the future or maybe some sort of anything which the management wants to take the company to a next level.

Speaker #6: And the company is doing quite well. So, apart from dividends, maybe some kind of share buyback in the future, or maybe something else that the management wants to do to take the company to the next level.

Speaker #4: Let me take that. I think we are just in the midst of completing the last expansion which we have taken up. As you would know, as far as capital allocation is concerned, you don't immediately look at buying back when you are actually expanding.

Harsh Bansal: Let me take that. I think we are just on the verge of completing the large expansion which we have taken up. As you would know, as far as the capital allocation is concerned, you do not immediately look at buying back when you are actually expanding. Having said that, we hear you, and whatever we believe is best for all the stakeholders at the right time and the right opportunity, we will definitely look at these.

Speaker #4: But having said that, we hear you. Whatever we believe is best for all the stakeholders, at the right time and the right opportunity, we'll definitely look at these.

Speaker #6: Okay, sir. Thank you for the opportunity, and thank you for answering all my questions. I look forward to the future quarters. Thank you so much.

[Company Representative]: Okay, sir. Thank you for the opportunity, and thank you for answering all my questions. I look forward to the future quarter. Thank you so much.

[Shareholder] (Private Investor): Okay, sir. Thank you for the opportunity, and thank you for answering all my questions. I look forward to the future quarter. Thank you so much.

Speaker #4: Thank you, Bhavesh ji.

Harsh Bansal: Thank you, Bhavesh.

Speaker #2: The next question is from the line of Vansheka Agarwal, an individual investor. Please go ahead.

Speaker #7: Hi, sir. Thank you for the opportunity. Could you please shed some light on the improved utilization of cubes and the rolling mill?

Vanshika Agarwal: Hi, sir. Thank you for the opportunity. Could you please shed some light on the improved utilization of tubes and rolling mill?

Harsh Bansal: Hi, Vanshika. The rolling mill is very demand and supply dependent. There is nothing that we have done to get higher utilization. I would say the customer has been kind. On the pipes and tubes side, we created the capacities from. We added about half a million tons of capacity over the last three years. What you are seeing today in terms of increase of utilization from annualized 34% odd in FY26 to Q1 40% annualized is that increasing utilization which was expected when we increased the capacity. My personal belief is that in pipes and tubes, a stable state utilization of 65% to 70% is at best possible, and that is what we hope to achieve in a stable state by, let us say, FY29 odd.

Harsh Bansal: Hi, Vanshika. The rolling mill is very demand and supply dependent. There is nothing that we have done to get higher utilization. I would say the customer has been kind. On the pipes and tubes side, we created the capacities from. We added about half a million tons of capacity over the last three years. What you are seeing today in terms of increase of utilization from annualized 34% odd in fiscal year26 to Q1 40% annualized is that increasing utilization which was expected when we increased the capacity. My personal belief is that in pipes and tubes, a stable state utilization of 65% to 70% is at best possible, and that is what we hope to achieve in a stable state by, let us say, fiscal year29 odd.

Speaker #4: Hi, Vansheka ji. So, the rolling mill is, you know, very, very demand- and supply-dependent. So, there's nothing that, you know, we have done to kind of get higher utilization.

Speaker #4: I would say the customer has been kind. On the pipes and tubes side, we created the capacities—we added about, you know, half a million tons of capacity over the last three years.

Speaker #4: And what you are seeing today, in terms of increase of utilization from annualized 34 odd percent in FY 206 to Q1 40 percent annualized, is is just a, you know, it's that increasing utilization which was expected when we increased the capacity.

Speaker #4: My personal belief is that, in pipes and tubes, a stable state utilization of 65 to 70 percent is at best possible. And that's what we hope to achieve in a stable state by, let's say, FY29 odd.

Speaker #7: Okay. Also, sir, if you could shed some light on the industry landscape with respect to color-coded coils that we are planning to commission.

Vanshika Agarwal: Okay. Also, sir, if you could shed some light on the industry landscape with respect to color-coated coils that we are planning to commission.

Speaker #4: So there's not— in terms, you know, there's not much that I can share on the industry landscape. I think the industry has been a beneficiary of the government's safeguard duties, as well as QCOs.

Harsh Bansal: There is not much that I can shed on the industry landscape. I think the industry has been a beneficiary of the government's safeguard duties as well as QCOs. We are seeing a fairly robust increase of 7% plus just for color-coated products. This is expected to increase further with industrial activity, investments, et cetera, going up. I think we should be in a fairly safe space when we say that the capacity is coming onto the market today, provided they do provide the product in a consistent quality. I think that has been a challenge for a lot of suppliers domestically in India, where quality seems to take the back seat. I think we need to be very careful about ensuring that the customer, along with correct pricing, also gets the right quality.

Speaker #4: We are seeing a fairly robust increase of, you know, 7% plus just for color-coded products. And this is expected to increase further, with industrial activity, investments, et cetera, going up.

Speaker #4: So, I think we should be in a fairly safe space when we say that the capacity is coming onto the market today, provided they do provide the product in a, you know, consistent quality.

Speaker #4: I think that's been a challenge for a lot of suppliers, domestically in India, where quality seems to take a back seat. I think we need to be very, very careful about ensuring that the customer, along with correct pricing, also gets the right quality.

Harsh Bansal: With that, I do not expect the market, at least for the foreseeable future, to have any negative side surprises for this product.

Speaker #4: With that, I don't expect the market, at least for the foreseeable future, to have any negative surprises for this product.

Speaker #7: Thank you, sir.

Vanshika Agarwal: Thank you, sir.

Speaker #2: Thank you. Ladies and gentlemen, we will take that as the last question of the day. I would now like to hand the conference over to Ms. Johee Manvani for the closing comments.

Operator 2: Thank you. Ladies and gentlemen, we take that as the last question of the day. I would now like to hand the conference over to Ms. Juhi Manwani for the closing comments. Without any further delay, I will hand over the call to Mr. Sharif. Thank you to the management and participants for joining Q1 FY27 conference call of BMW Industries. I would now hand over the call to the management for their closing remarks.

Operator: Thank you. Ladies and gentlemen, we take that as the last question of the day. I would now like to hand the conference over to Ms. Juhi Manwani for the closing comments. Without any further delay, I will hand over the call to Mr. Sharif. Thank you to the management and participants for joining Q1 fiscal year27 conference call of BMW Industries. I would now hand over the call to the management for their closing remarks.

Speaker #8: So, without any further delay, I will hand over the call to Mr.—sorry. Thank you to the management and participants for joining the Q1 FY27 conference call of BMW Industries.

Speaker #8: I would now hand over the call to the management for their closing remarks.

Speaker #4: So, you know, go ahead, please, sir. Thank you, everyone, for taking the time to join the call. We sincerely appreciate your participation and your continued success with the company.

Harsh Bansal: Go ahead, please, sir.

Sanjeev Sancheti: Thank you everyone for taking time to join the call. We sincerely appreciate your participation and continued interest in BMW. Should you have any further questions or require any additional information, please feel free to get in touch with us. Thank you.

Speaker #4: Should you have any further questions or require any additional information, please feel free to get in touch with us. Thank you. Thank you so much, sir, for taking the time out and joining.

Harsh Bansal: Thank you so much for taking the time out and joining. Your questions are always most welcome and encourage us. Thank you.

Speaker #4: You know, your questions are always most welcome and encouraging. Thank you.

Operator 2: On behalf of Arihant Capital Markets Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Operator: On behalf of Arihant Capital Markets Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

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Q1 2027 BMW Industries Ltd Earnings Call

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