Bhagyanagar India Limited — Q4 FY26 earnings call

Call held 2 May 2026

Management summary

Bhagyanagar India Limited reported a strong Q4 and full-year FY26, achieving record revenues, EBITDA, and PAT. The company's strategic focus on value-added products and increased capacity drove significant margin expansion and improved return ratios. Management outlined ambitious growth targets, aiming for ₹5,000 crores revenue by 2030, primarily driven by volume and strategic investments in new products and recycling, alongside a planned demerger to unlock real estate value.

Highlights

  • FY26 Revenue crossed ₹2,000 crores for the first time, marking a significant milestone.

  • FY26 Operational EBITDA exceeded ₹100 crores for the first time, demonstrating improved profitability.

  • FY26 PAT crossed ₹50 crores for the first time, reflecting strong bottom-line performance.

  • Q4 FY26 was the best quarter with ₹735 crores in revenue and ₹18.5 crores in PAT.

  • ROE improved to 19.5% (from 6.8% last year) and ROCE to 16.3% (from 6.84% last year), indicating enhanced capital efficiency.

  • Production volume increased by 34% YoY to 24,000 metric tonnes, and capacity reached 35,000 metric tonnes.

  • Value-added products mix reached 62% by Q4 FY26, contributing to higher margins.

Concerns

  • Public platforms reported a 96% promoter share pledge, which management stated was an error and would be corrected (actual pledge <5% for hedging).

  • Working capital increased from ₹157 crores to ₹230 crores, though management attributed this to revenue proportionality.

  • Industry-wide copper scrap availability issues and shipping delays were noted, although Bhagyanagar's low dependence on Gulf scrap mitigated its impact.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹735 Cr
  • PAT
    ₹18.5 Cr
  • Operational EBITDA
    ₹36 Cr
  • EBITDA per kg
    ₹62

FY26

  • Revenue
    ₹2,000 Cr
  • Operational EBITDA
    ₹100 Cr
  • PAT
    ₹50 Cr
  • ROE
    19.5%
  • ROCE
    16.3%
  • Production Volume
    24,000 metric tonne
    YoY +34%
  • EBITDA per kg
    ₹43

What they filed

Q1 FY27: revenue down 15.7%, net profit down 81.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue3 0 1 2 2 −10%1 +131%1 −11%2 −16%
EBITDA1 -0 0 -1 2 +133%0 +171%1 +833%0 +104%
Net profit0 0 1 1 1 +207%0 −70%0 −87%0 −82%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹40 Cr
    • Plastic recycling project ₹10 Cr
    Management: Proposed ₹40 crores capex in the next 2 years. (Page 7) and Planning to invest around ₹10 crores into plastic recycling (Page 5)
  • Debt Debt disclosed
    And sir, our borrowings has come down, that is very good, sir, and we are now cash flow positive on operational levels. So, coming down over a period of time other than the retained earnings is not going to be, very, logical. Our working capital will keep going up along with the turnover, and our borrowings also will go up, but hopefully not in the same ratio as our turnover. As a percentage, it will keep reducing.
  • Liquidity Liquidity disclosed Cash flow positive on operational levels.
    And sir, our borrowings has come down, that is very good, sir, and we are now cash flow positive on operational levels.

Guidance & targets

Revenue

  • Revenue Revenue · by 2030 · High confidence ₹5,000 crores
    That is, in 3 years, we are planning to reach 5,000 crores in the year 2030.

    — BHAGYANAGAR INDIA LTD

  • Revenue CAGR Revenue · next 3 to 4 years · High confidence 20-25%
    25% CAGR is our target for the next 3 to 4 years.

    — BHAGYANAGAR INDIA LTD

Margin

  • EBITDA Margin Margin · next year · High confidence 5%
    We have achieved almost 5% EBITDA margin during the last two quarters. We are hopeful of maintaining 5% EBITDA margin throughout the next year, and on an increased top line.

    — BHAGYANAGAR INDIA LTD

Volume

  • Volume Growth Volume · next year · High confidence 20%
    For the 25%, we are expecting 20% volume growth and 5% increase in prices. Between 15% to 20% should be our volume growth minimum every year.

    — BHAGYANAGAR INDIA LTD

Price

  • Price Increase Price · next year · High confidence 5%
    For the 25%, we are expecting 20% volume growth and 5% increase in prices.

    — BHAGYANAGAR INDIA LTD

  • Copper Prices Increase Price · year-on-year · High confidence 5%
    So, we are estimating a conservative 5% increase in the copper prices year-on-year.

    — BHAGYANAGAR INDIA LTD

Product Mix

  • Value-Added Products % Product Mix · by end of next year · High confidence 66%
    So, we've already reached around 62% at the end of quarter four, and we are planning to get this up to 66% by the end of next year.

    — BHAGYANAGAR INDIA LTD

Funding

  • Fundraise Amount Funding · this financial year · Medium confidence ₹150 crores
    We are looking at a fundraise. We are still not, come up with a final proposal, but we are looking at a fundraise of roughly about 150 crores. We hope to do it in this financial year, definitely.

    — BHAGYANAGAR INDIA LTD

What to watch in Q1 FY27

Correction of Promoter Share Pledge Reporting

Next quarter
Current Public platforms show 96% pledge, management states <5%
Target Public platforms reflect actual pledge (<5%)

Why it matters

Resolving this discrepancy is crucial for investor confidence and market perception.

I think there is some error in that. We have a very small pledge of my shares, which have been given to MCX as security for our hedging. There is no pledge given to banks for raising of funds. There is zero percentage there. A small percentage of my personal shareholding has been given to MCX, which is less than 5%, which is less than 5%. I think it must be reverse. It must be... 96 must be the unpledged one. I think... where have you seen that? We might have to correct it.

Risks & concerns

  • Misreporting of Promoter Share Pledge

    medium

    Public platforms (screener) show 96% promoter pledge, which management states is an error; actual pledge is <5% for MCX hedging, not to banks.

    Analyst acknowledged

  • Industry-wide Copper Scrap Availability & Shipping Delays

    medium

    Gulf scrap dried up, shipping lines diverted causing delays, but Bhagyanagar's dependence on Gulf scrap is <5%, making it less affected than the broader industry.

    Analyst downplayed

  • Increased Competition in Copper Recycling

    medium

    New large players like Adani and Hindalco entering copper recycling, but Bhagyanagar's 40-year experience and global sourcing provide a competitive edge.

    Analyst downplayed

Q&A highlights

8 direct
Promoter Share Pledge Reporting Discrepancy Direct
I think there is some error in that. We have a very small pledge of my shares, which have been given to MCX as security for our hedging. There is no pledge given to banks for raising of funds. There is zero percentage there. A small percentage of my personal shareholding has been given to MCX, which is less than 5%, which is less than 5%. I think it must be reverse. It must be... 96 must be the unpledged one. I think... where have you seen that? We might have to correct it.

Clarifies a significant discrepancy in public reporting (96% pledge) versus the actual situation, addressing a potential red flag for investors.

Asked by Manan Shah

Demerger Rationale and Real Estate Valuation Direct
So we thought that going forward, when we want to do a lot of focus on the copper business, we are... planning to have a stand-alone copper company which will have nothing other than copper business. There is no, sort of distraction of the real estate or the windmills. Whereas the other company, Bhagyanagar India, which will remain, will have real estate, and that company can then concentrate on development of real estate without having the complication of the copper business in it. The real estate value in books is roughly about 29 crores. And, the value is at least, at least 10 times. Maybe 20 times, I don't know how much.

Explains the strategic intent behind the demerger to unlock value and provides an indicative, albeit qualitative, valuation for the real estate assets.

Asked by Satish Patnaik

High EBITDA per tonne compared to peers Direct
So, like I said, we are doing both recycling as well as value-added. So, if you look at a company like Precision, which you have mentioned, they are doing, mainly the finished products. Now they are getting into recycling. And if you look at my other peers who are already in recycling, they are already having EBITDA margins of over 5%.

Addresses analyst's concern about the company's high EBITDA/tonne relative to peers, attributing it to a diversified business model including both recycling and value-added products.

Asked by Aryan Bhatia

Plastic Recycling Project Investment and Returns Direct
I mean, typically for this type of investments, we look at between 12 and 15 months payback. Not 3 years or 5 years. It's going to be very... yeah, it's going to be very, and very attractive, but top line is not really going to be very high.

Provides specific payback period for the ₹10 crore plastic recycling investment, indicating attractive returns despite not significantly boosting the top line.

Asked by Kushal Kasliwal

Copper Scrap Availability and Sourcing Strategy Direct
what has happened is scrap is available from all over the world. The scrap coming from Gulf, which is of a short duration, short lead time material, has suddenly dried up. And, the material which is coming from the rest of the world, the shipping lines have been diverted because a lot of shipping lines have a transit point in Dubai or somewhere in the Gulf before coming to India. That has got delayed. Having said that, we are fortunate that our dependence on scrap from Gulf is very, very low compared to the rest of the industry. That was more on an industry-focused point of view, while I guess, roughly about 25% of the scrap comes from Gulf. We are dependent on scrap from Gulf to less than 5% of our material comes from Gulf.

Details the company's resilience to industry-wide scrap sourcing challenges due to its diversified global supply chain and low dependence on the Gulf region.

Asked by Manan Shah

EPR (Extended Producer Responsibility) Policy Impact Direct
EPR is on our radar. EPR has been notified only on April 1st of this year. We are ready to provide EPR services to manufacturers, because we have been recycling and also making value-added products. So, in that way, we are the best positioned to take advantage of the EPR policy. No material impact on the figures of Bhagyanagar, but being in that sector really gives us an edge for the future.

Explains the company's readiness and strategic positioning to benefit from the new EPR policy, even if the financial impact is not immediate.

Asked by Vedansh Agarwal

Working Capital Management and Borrowings Direct
So, my working capital requirement, I roughly have about 30 to 35 days for stocks and 35 days for debtors. I think that should be more or less in line for the future. I might be slightly reducing as the volume keeps going up. So if, if I give you the figures for 24-25, my inventory days is 35 days, and my receivable days is 33. Whereas, 25-26, it is 35 and 31. More or less, it will be in this line only, while we are working very hard to ensure that both come down by maybe 2 to 3 days, over this year.

Provides specific metrics for working capital days and outlines efforts to optimize them, indicating prudent financial management.

Asked by Raj Sarraf

Overcapacity Risk in Copper Recycling Direct
The, the scrap recycling business has always been quite fragmented, and there will always be, competition. Yes, Adani and Hindalco announcing that they'll come into recycling is also going to be an issue going forward in future, because one of the biggest challenges in recycling is also sourcing. My biggest advantage in this is we've been in this business for a very, very long time, and we are in copper business for 40 years, and that has given us a very good edge in sourcing material all over the world.

Addresses concerns about increasing competition from large players, highlighting the company's long-standing experience and global sourcing advantage as key differentiators.

Asked by Manan Shah

2 min read 6 chapters

Detailed narrative

Record Financial Performance in FY26

Bhagyanagar India Limited achieved a landmark financial year in FY26, crossing ₹2,000 crores in revenue, ₹100 crores in operational EBITDA, and ₹50 crores in PAT for the first time. The company's ROE significantly improved to 19.5% from 6.8% in the previous year, and ROCE reached 16.3% from 6.84%. Q4 FY26 was the best quarter, with revenues of ₹735 crores and PAT of ₹18.5 crores, demonstrating strong momentum.

Strategic Shift Towards Value-Added Products and Capacity Expansion

The company's strategy to focus on value-added products has yielded positive results, with the product mix reaching 62% by Q4 FY26, up from 52% in Q1, and a target of 66% by next year-end. Production volume increased by 34% YoY to 24,000 metric tonnes. Capacity expanded to 35,000 metric tonnes this year, supported by a new 60-acre integrated facility near Hyderabad. New products like silver and tin-coated bus bars for data centers are being exported to Canada and the US.

Ambitious Growth Targets and Industry Outlook

Bhagyanagar India aims to achieve ₹5,000 crores in revenue by 2030, translating to a CAGR of 20-25% over the next 3-4 years. This growth is expected to be driven primarily by 20% volume growth and a conservative 5% price increase year-on-year. The management is optimistic about the copper industry's future, projecting global consumption to double to 50 million tonnes by 2050, with India becoming the second-largest consumer, driven by EV, automotive, power, and renewable energy sectors.

Corporate Restructuring and Demerger

The company is undergoing a demerger into two separate entities: one for the copper business and another for real estate. All necessary approvals from shareholders and creditors have been secured, and a joint petition has been filed with NCLT, with the next hearing scheduled for June 9th. This strategic move aims to unlock value from the real estate assets, valued at least 10-20 times their book value of ₹29 crores, and allow the copper business to focus solely on its core operations without distraction.

Diversified Sourcing and Recycling Initiatives

Bhagyanagar India's diversified global scrap sourcing strategy, with less than 5% dependence on the Gulf region, has insulated it from industry-wide scrap availability and shipping delays. The company plans to invest ₹10 crores in plastic recycling over the next year, focusing on byproducts from its cable imports, with an attractive payback period of 12-15 months. This closed-loop philosophy aims to add value to all materials entering its factories.

EPR Readiness and Financial Management

The company is well-positioned to leverage the new Extended Producer Responsibility (EPR) policy, which became effective on April 1st, due to its existing recycling and value-added product capabilities. While not expected to have a material financial impact in the short term, it provides a strategic edge. The company reported a reduction in outside liabilities relative to operational EBITDA (from 7.7 to 2.6) and is actively managing working capital, aiming to reduce inventory and receivable days further.

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