Bhansali Engineering Polymers Q2 FY27 results: net profit up 54.4% to ₹62.46 crore, revenue up 24.1%

How did Bhansali Engineering Polymers perform in Q2 FY27?

On a consolidated basis, Bhansali Engineering Polymers reported Q2 FY27 revenue of ₹403.37 crore for the July–September 2026 quarter, up ₹78.27 crore or 24.1% from ₹325.10 crore in Q2 FY26. Revenue was down ₹68.78 crore or 14.6% from ₹472.15 crore in Q1 FY27. Total income was ₹413.08 crore, against ₹332.76 crore a year ago and ₹481.91 crore in the previous quarter.

Consolidated EBITDA was ₹78.89 crore, up ₹29.81 crore or 60.7% from ₹49.08 crore in Q2 FY26 and down ₹3.70 crore or 4.5% from ₹82.59 crore in Q1 FY27. EBITDA margin was 19.6%, up 4.5 percentage points from 15.1% a year ago and 2.1 percentage points from 17.5% in the previous quarter.

Profit before tax was ₹86.53 crore, up ₹31.96 crore or 58.6% from ₹54.57 crore a year ago, while tax was ₹24.40 crore, up ₹9.92 crore or 68.5%. Net profit was ₹62.46 crore versus ₹40.45 crore in Q2 FY26 and ₹65.60 crore in Q1 FY27; basic EPS was ₹2.51 compared with ₹1.63 and ₹2.64, respectively. On a standalone basis, revenue was ₹403.37 crore and PAT was ₹63.03 crore.

The standalone profit before tax was ₹40.09 crore, with revenue growth of 24.1% from the year-ago quarter. There was no exceptional item in the consolidated quarter.

What changed in Bhansali Engineering Polymers' costs and profit?

Total expenses were ₹326.55 crore in Q2 FY27, up ₹48.36 crore or 17.4% from ₹278.19 crore in Q2 FY26. Cost of materials was the largest increase, rising ₹65.81 crore or 34.0% to ₹259.43 crore. Employee cost increased ₹2.87 crore or 18.9% to ₹18.07 crore, while other expenses rose ₹6.67 crore or 17.6% to ₹44.54 crore.

Finance costs declined ₹0.02 crore or 33.3% to ₹0.04 crore, while depreciation fell ₹0.08 crore or 3.8% to ₹2.04 crore. Other income increased ₹2.05 crore or 26.8% to ₹9.71 crore. These figures show the direction of each reported line, but the filing did not state what drove the year-on-year changes.

Against Q1 FY27, cost of materials fell ₹6.50 crore or 2.4% to ₹259.43 crore and total expenses declined ₹65.14 crore or 16.6% to ₹326.55 crore. Other income was ₹9.71 crore, down ₹0.04 crore, while tax was ₹24.40 crore, down ₹0.68 crore. There was no exceptional item in either quarter.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹875.52 crore, up ₹242.51 crore or 38.3% from ₹633.01 crore in H1 FY26. Total income rose ₹242.96 crore or 37.3% to ₹894.99 crore from ₹652.03 crore, while profit before tax increased ₹60.5 crore or 52.0% to ₹176.74 crore.

H1 FY27 net profit was ₹128.06 crore, up ₹41.72 crore or 48.3% from ₹86.34 crore in H1 FY26. Basic EPS increased ₹1.68 or 48.4% to ₹5.15 from ₹3.47. The first-half figures therefore showed higher revenue, profit before tax, net profit and EPS than the corresponding prior-year period.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1285.17 crore, compared with ₹1285.26 crore at 31 March 2026. Total equity rose to ₹1161.3 crore from ₹1083.22 crore, while the company reported no borrowings at either date. Cash declined to ₹157.26 crore from ₹386.8 crore.

Inventories were ₹180.85 crore at the quarter end, down from ₹183.91 crore at 31 March 2026. Trade receivables increased to ₹309.18 crore from ₹253.52 crore, while trade payables fell to ₹65.62 crore from ₹151.69 crore. Management attributed negative operating cash flow to the working-capital build.

For H1 FY27, operating cash flow was negative ₹22.77 crore, compared with ₹38.72 crore in H1 FY26. Investing cash flow was negative ₹157.0 crore against negative ₹292.92 crore, while financing cash flow was negative ₹49.77 crore in both periods. Capital expenditure was ₹22.22 crore, compared with ₹21.51 crore a year earlier.

How has Bhansali Engineering Polymers done over the last 8 quarters?

Revenue reached its highest level of the reported period in Q1 FY27 at ₹472.15 crore before falling to ₹403.37 crore in Q2 FY27. The lowest revenue in the series was ₹301.39 crore in Q3 FY26. Revenue had risen year on year in each of the last two quarters.

Net profit reached a period high of ₹65.60 crore in Q1 FY27 before easing to ₹62.46 crore in Q2 FY27. Its lowest point was ₹39.50 crore in Q4 FY25, while profit had risen year on year in each of the last four reported quarters.

EBITDA margin increased to 19.6% in Q2 FY27, the highest in the reported series and 2.1 percentage points above Q1 FY27. The lowest margin was 14.0% in Q4 FY25. The latest quarter therefore combined lower sequential revenue and profit with a higher margin.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 and noted the limited review report issued by the statutory auditors. It declared a second interim dividend of Re 1 per equity share for FY 2026-27, subject to tax at source, taking the FY27 total to Rs 2.

The company fixed 24 October 2026 as the record date for the second interim dividend and said payment would be made on or before 17 November 2026. The same-day filing also said the ABS expansion from 75000 TPA to 100000 TPA, with an estimated cost of Rs.200 crores, had been delayed by imported-equipment, shipping-container, foreign-supplier and reactor delivery issues linked to the global war scenario.

The company said the reactor was now expected in November 2026 and that management remained confident of completing the expansion by end of March 2027. The filing did not report a fund raise or appointment.

What did Bhansali Engineering Polymers' management say?

Management said the ABS expansion would raise capacity from 75,000 TPA to 100,000 TPA under an estimated capex of ₹200 crore, with commissioning targeted for March 2027. It said the reactor was expected in November 2026 and described in-house SAN and HRG backward integration, the Nippon A&L joint venture and a shift towards specialty and higher-value polymers as priorities.

Management identified execution risk from geopolitical disruptions, supply-chain constraints, logistics challenges and equipment-delivery and commissioning delays. It also highlighted negative H1 FY27 operating cash flow, a rise in trade receivables to ₹309.2 crore from ₹253.5 crore, and working-capital days of 101 compared with 79 in FY26 as areas of concern.

Management described the balance sheet as debt-free, with gross debt-to-equity at 0.0x, and linked the moderation in returns to the balance sheet expanding ahead of capacity commissioning. It also pointed to customer concentration in appliances at about 33% and automotive at about 25% of end-markets. No separate analyst-question responses were provided in the cited investor presentation.

How did Bhansali Engineering Polymers shares react?

After the filing appeared in the market, BEPL was down 3.3% after five minutes, 2.6% after 15 minutes and 7.7% after 30 minutes, measured from the price when the filing appeared. On the reaction day, the stock closed down 9.4% from its previous close of ₹129.0.

By the next day's close, the stock was down 13.8% from its pre-results close, and by the fifth session it was down 13.9%. The Petrochemicals industry median was down 2.9% on the reaction day, 6.5% by the next day and 10.3% by five sessions, leaving BEPL behind the median by 6.5, 7.3 and 3.6 percentage points, respectively.