BirlaNu Q2 FY27 results: net loss widens to ₹57.37 crore, revenue up 9.2%

How did BirlaNu perform in Q2 FY27?

BirlaNu reported consolidated revenue of ₹884.52 crore for Q2 FY27, up 9.2% from ₹810.15 crore in Q2 FY26. Total income rose 8.8% to ₹896.13 crore from ₹823.79 crore. EBITDA was a loss of ₹10 crore, compared with a loss of ₹9.70 crore a year earlier, and the EBITDA margin was -1.1% against -1.2%.

The company reported a net loss of ₹57.37 crore for the quarter, compared with a net loss of ₹42.86 crore in the year-ago quarter, and basic EPS of -₹76.08 against -₹56.84. Against the previous quarter, revenue fell 24.7% from ₹1,174.02 crore and EBITDA moved from ₹72.95 crore to a loss of ₹10 crore, with the margin down 7.3 percentage points to -1.1%. On a standalone basis, revenue was ₹580.77 crore, up 21.3%, and the net loss was ₹83.82 crore.

What changed in BirlaNu's costs and profit?

Total expenses rose 8.9% to ₹949.92 crore in Q2 FY27 from ₹872.45 crore in Q2 FY26. Cost of materials was ₹467.15 crore, up 16.5% or ₹66.15 crore, while employee cost rose 12.2% to ₹152.87 crore and other expenses rose 8.7% to ₹244.37 crore. Finance costs increased 13.1% to ₹17.01 crore and depreciation rose 2.2% to ₹38.39 crore.

Other income fell 14.9% to ₹11.61 crore from ₹13.64 crore in the year-ago quarter. There was no exceptional item in either quarter. Tax was ₹3.60 crore, against a credit of ₹5.84 crore a year earlier, a difference of ₹9.44 crore. The loss before tax was ₹53.79 crore, compared with ₹48.66 crore in Q2 FY26, and the net loss widened to ₹57.37 crore from ₹42.86 crore.

How did the first half of FY27 go?

For H1 FY27, BirlaNu reported consolidated revenue of ₹2,058.54 crore, up 10.5% from ₹1,862.43 crore in H1 FY26. Total income was ₹2,077.24 crore, up 9.6% from ₹1,895.46 crore, and the loss before tax narrowed to ₹28.41 crore from ₹43.47 crore.

The net loss for the first half widened to ₹47.97 crore from ₹44.18 crore, and EPS was -₹63.61 against -₹58.59. The tax charge in the half year was higher than a year earlier, which management linked to the group’s operating performance.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹3,041.24 crore, down from ₹3,070.92 crore at 31 March 2026. Total equity fell to ₹1,053.66 crore from ₹1,110.38 crore, while borrowings rose to ₹896.03 crore from ₹852.33 crore. Cash was ₹30.62 crore against ₹48.93 crore, inventories were ₹661.12 crore against ₹686.57 crore, trade receivables were ₹188.15 crore against ₹206.85 crore, and trade payables were ₹428.94 crore against ₹440.23 crore.

For H1 FY27, net cash from operating activities was ₹50.08 crore, compared with ₹7.83 crore in H1 FY26. Net cash used in investing activities was ₹60.42 crore against ₹5.74 crore, and net cash used in financing activities was ₹8.12 crore against ₹45.42 crore. Capital expenditure was ₹67.14 crore in the half year, compared with ₹33.78 crore a year earlier.

How has BirlaNu done over the last 8 quarters?

Revenue has risen year on year in each of the last five quarters. Over the reported period, revenue reached its highest level at ₹1,174.02 crore in Q1 FY27 and its lowest at ₹805.25 crore in Q3 FY25. In Q2 FY27, revenue was ₹884.52 crore.

Profit swung from a profit of ₹9.4 crore in Q1 FY27 to a net loss of ₹57.37 crore in Q2 FY27, the lowest quarterly loss in the series apart from the Q3 FY26 loss of ₹53.03 crore. The EBITDA margin peaked at 6.2% in Q1 FY27 and was -1.1% in Q2 FY27.

Which businesses drove the quarter?

Roofs was the largest contributor among the reported segments, with revenue of ₹244.45 crore, up 28.2% from ₹190.65 crore, and EBIT of ₹23.47 crore against ₹12.70 crore. Walls recorded revenue of ₹163.6 crore, up 5.4% from ₹155.26 crore, with EBIT of ₹12.51 crore against ₹10.20 crore.

Pipes & Construction Chemicals reported revenue of ₹178.98 crore, up 15.6% from ₹154.85 crore, with EBIT of -₹4.81 crore against -₹12.74 crore. Floors recorded revenue of ₹296.93 crore, down 3.8% from ₹308.69 crore, with EBIT of -₹58.17 crore against -₹28.58 crore. Others reported revenue of ₹2.23 crore, up 19.9%, and EBIT of ₹1.06 crore.

What else did the company announce?

On 2 November 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with limited review reports from B S R and Co. The board also approved the incorporation of a wholly-owned subsidiary to operate a digital platform for product discovery, sampling and professional engagement between architects, interior designers and brands. BirlaNu will subscribe to 100% of the initial paid-up share capital for ₹15,00,000, or 1,50,000 equity shares of ₹10 each at par value, paid in cash. No regulatory approvals are required for the incorporation.

The company also filed a loan agreement with BirlaNu International GmbH, a wholly-owned German subsidiary, for EUR 3.5 million to meet the borrower's working capital requirements. The loan was executed on 29 October 2026 and approved on 2 November 2026, carries an annual interest rate of 8% with a maximum tenor of 6 years, and is at arm's length. The filing states that no security was provided and that the total amount outstanding with the subsidiary is Euro 20 million. The company filed an investor presentation on the results and disclosed an audio recording of the investors' conference call held on 3 November 2026.

What did BirlaNu's management say?

Management said India revenue in Q2 rose 17.3% to ₹588 cr as the EBITDA margin expanded for a fifth straight quarter, while CleanCoats revenue rose about 50%. Management expects a strong second half and, in aggregate, a strong FY27, supported by the Nellore boards plant, where commercial production is expected to begin in Q4 FY27, and the Hyderabad project, for which groundbreaking is expected by December 2026.

Management said Parador required another ₹90 cr investment provision, taking cumulative write-downs to ₹164 cr. The company identified a potential €9-14 million annual EBITDA savings envelope at Parador, with results expected within FY27 and realisation possibly lower, and gave no clear timeline for a Parador turnaround. Construction Chemicals is expected to finish FY27 profitable, CleanCoats integration is targeted by end-2026 subject to statutory approvals, and existing solar assets are expected to deliver ₹4-5 crore of annual savings.

The CEO said: "All of this is with, is being done with a line of sight of a rebound and resurgence as far as the business and the core fundamentals of the business are concerned." The CFO said: "The integration of CleanCoats with Birla Nu is expected to be completed by end of this year, subject to the requisite statutory approvals." Management also flagged risks from geopolitical disruption and supply constraints inflating raw materials, energy, freight and currency, high inflation and tight liquidity weakening near-term demand, El Niño reducing farm output and rural demand, weak European flooring demand and cost pressures at Parador, and CleanCoats input-cost inflation weighing on margins.

How did BirlaNu shares react?

The results were released after market hours. From the price when the filing appeared, BirlaNu was down 4.0% after five minutes, 4.1% after 15 minutes and 4.1% after 30 minutes. On the reaction day, the stock closed 8.6% below its pre-results close of ₹1,271.9, against a median decline of 1.8% for the other 15 stocks in the Other Construction Materials industry.

By the next day's close, the stock was down 5.6% from its pre-results close, while the industry median was down 0.4%. The reaction-day move was 6.8 percentage points below the industry median, and the next-day cumulative move was 5.2 percentage points below it. Earlier results-day moves were mixed: the stock was up 9.7% on 6 August 2026 and fell 5.8% on 12 May 2026, 5.9% on 13 February 2026 and 4.3% on 7 November 2025.