Bhansali Engineering Polymers Ltd. (BEPL) has reported a strong start to FY27, posting higher revenue and improved profitability in the first quarter while reaffirming its debt-free status and advancing its Rs. 200-crore capacity expansion entirely through internal accruals.
The company reported total income of Rs. 341.6 crore for Q1 FY27, up 8.7% from Rs. 307.9 crore in the corresponding quarter last year. EBITDA stood at Rs. 74.3 crore, with the EBITDA margin improving to 21.8% from 20.9%, reflecting stronger operating leverage and improved cost efficiencies. Profit after tax (PAT) rose to Rs. 51.6 crore, with the PAT margin expanding to 15.1% from 14.9% a year earlier.
BEPL said revenue growth during the quarter was driven by higher realizations, while disciplined cost management and operating efficiencies supported margin expansion.
The company also announced its first interim dividend of Rs. 24.9 crore, underscoring its continued focus on shareholder returns while maintaining financial flexibility for future growth.
BEPL said its ongoing Rs. 200-crore debottlenecking project at the Abu Road plant remains fully funded through internal accruals, allowing the company to preserve its debt-free balance sheet.
The project will increase production capacity from 75,000 MTPA to 100,000 MTPA, with commissioning targeted for September 2026 and optimal utilisation expected during FY28.
According to the company, the expansion is expected to strengthen its position as one of India's lowest-cost ABS producers, improve its ability to capture a larger share of domestic demand currently met through imports, and support a higher-margin product mix through specialty and colour-grade offerings.
"Our Q1 FY27 performance underscores the resilience of our business model and the strength of our cost leadership amidst a dynamic global geopolitical environment. Despite external uncertainties, disciplined execution and sustained operating efficiencies enabled us to deliver healthy growth in profitability.
"Our ongoing capacity expansion to 100,000 MTPA, being funded entirely through internal accruals, reflects the robust cash-generating ability of the business while preserving our debt-free balance sheet.
"The Company remains committed to delivering consistent value to its shareholders through a disciplined capital allocation approach. In line with this commitment, the Board has declared a first interim dividend of Rs. 24.9 crore for Q1 FY27, reflecting the Company's strong financial position while continuing to retain sufficient liquidity to fund future growth initiatives," said Jayesh B. Bhansali, Joint Managing Director & Chief Financial Officer, BEPL.
