Bemco Hydraulics - Bemco Hydraulics

📊 BSE: 522650 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 93.75% YoY to INR 62 Cr in FY21 from INR 32 Cr in FY20. Subsidiary Pegasys Machines Pvt Ltd contributed INR 14.48 Cr to turnover in FY25, while Bemco Fluidtechnik LLP contributed INR 4.00 Cr.

Geographic Revenue Split

Not disclosed in available documents; operations are primarily based in Belgaum, Karnataka.

Profitability Margins

PAT margin improved significantly from 2.6% in FY20 to 6.6% in FY21, a 153% increase. Operating margins were 15.4% in FY21 and are expected to stabilize at 11-12% over the medium term.

EBITDA Margin

Operating margin was 15.4% in FY21, reflecting healthy core profitability from niche engineering products.

Capital Expenditure

The company executed a major capital outlay of INR 19.45 Cr in February 2024 to acquire 100% of Pegasys Machines Pvt Ltd to expand into automated straightening technology.

Credit Rating & Borrowing

CRISIL upgraded the long-term rating to 'CRISIL BB/Stable' in December 2021 (up from BB-), though the rating was subsequently withdrawn in December 2022 at the company's request following a 'no dues certificate' from the banker.

⚙️ Operational Drivers

Raw Materials

Engineering steel, hydraulic components, and electronic controllers for PLC/PC based automation systems.

Capacity Expansion

Current installed capacity not disclosed in units; however, the acquisition of Pegasys Machines Pvt Ltd adds a new manufacturing line for automatic straightening machines where they are the sole manufacturer in India.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company is classified as an engineering goods manufacturer with costs tied to industrial inputs.

Manufacturing Efficiency

Bank limit utilization was low at approximately 18% through August 2021, indicating efficient liquidity management despite high working capital needs.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be driven by the 100% acquisition of Pegasys Machines Pvt Ltd (INR 19.45 Cr), which provides entry into the automated straightening machine market as the sole domestic manufacturer. The company also leverages its established position as the sole supplier of re-railing products for Indian Railways and specialized equipment for HAL.

Products & Services

Hydraulic presses, re-railing systems, shaft straightening machines, gear roll testers, and PLC/PC based automation systems.

Brand Portfolio

Bemco, Pegasys.

New Products/Services

Automatic straightening machines and PLC-based automation systems acquired through Pegasys, expected to complement the existing hydraulics business.

Market Expansion

Entry into automated machine design and technical consultancy through the Pegasys acquisition.

Market Share & Ranking

Sole manufacturer of re-railing products for Indian Railways and sole manufacturer of automatic straightening machines in India.

Strategic Alliances

Bemco Fluidtechnik LLP (65% partner contribution) and Pegasys Machines Pvt Ltd (100% subsidiary).

🌍 External Factors

Industry Trends

The industry is shifting toward automation and PC-based control systems; Bemco's acquisition of Pegasys positions it to capture this 15-20% growth trend in automated engineering solutions.

Competitive Landscape

Operates in a niche engineering segment with limited direct domestic competition for its specialized product lines.

Competitive Moat

Sustainable moat derived from being the sole manufacturer for Indian Railways' re-railing products and the sole domestic provider of specific straightening technology, creating high switching costs and entry barriers.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending (Railways/Defense) and industrial production indices in the automotive sector.

Consumer Behavior

B2B and B2G demand is driven by modernization programs in the Indian Railways and the 'Make in India' initiative in defense.

⚖️ Regulatory & Governance

Industry Regulations

Complies with general industrial and engineering acts; no specific restrictive industry-specific laws apply to its manufacture of hydraulic equipment.

Legal Contingencies

Secretarial audit for FY25 reported no specific events or actions having a major bearing on the company's affairs, and no investor grievances were pending for over one month.