BEDMUTHA - Bedmutha Indus.

📊 NSE: BEDMUTHA 🏢 Steel - Medium / Small 📅 Last Updated: 12/13/2025 19:17

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew approximately 29.3% YoY. The Copper segment was the primary driver, growing 49.64% to INR 673.04 Cr (FY25) from INR 449.77 Cr (FY24). The Steel segment grew 4.00% to INR 376.29 Cr (FY25) from INR 361.84 Cr (FY24).

Geographic Revenue Split

Not explicitly disclosed by region, but the company is a leading producer in Western India with a 50-acre manufacturing unit in Nardana, Maharashtra, suggesting a strong regional concentration.

Profitability Margins

Operating Profit Margin declined from 6.86% in FY24 to 5.78% in FY25. Net Profit Margin also saw a slight compression from 2.50% to 2.36% due to cost pressures despite higher revenue.

EBITDA Margin

Consolidated EBITDA for the Steel segment fell 4.56% to INR 49.08 Cr, and Copper EBITDA fell 2.57% to INR 29.42 Cr. The decline in EBITDA despite revenue growth indicates rising operational costs or lower realizations per unit.

Capital Expenditure

The company is investing in its Nardana facility to reach full capacity utilization by the end of FY26. While specific INR Cr for future capex is not stated, historical debt includes long-term bank facilities of INR 113.26 Cr used for infrastructure.

Credit Rating & Borrowing

Upgraded in February 2025 to IVR BBB/Stable (Long Term) and IVR A3+ (Short Term). Previous rating was IVR BBB-/Positive. Interest coverage ratio stood at 1.69x in FY25 (MDA) while credit reports cited 3.27x for FY24.

⚙️ Operational Drivers

Raw Materials

Steel wire rods, high/low carbon steel, and copper cathodes/scrap. These materials represent the bulk of the cost of goods sold, given the manufacturing nature of the wire drawing industry.

Import Sources

Primarily sourced within India, particularly from Maharashtra and neighboring industrial hubs, to feed the Nardana, Dhule plant.

Key Suppliers

Not specifically named, but the company acknowledges contributions from various suppliers and business associates in its annual report.

Capacity Expansion

Current installed capacity is 86,400 MTPA for the Steel division and 16,200 MTPA for the Copper division. Planned expansion involves reaching 100% utilization at the Nardana facility by the end of FY2025-26.

Raw Material Costs

Raw material availability and prices are cited as critical factors. Inventory turnover ratio was 11.92x in FY25, a decrease from 15.41x in FY24, primarily due to increased sales and strategic inventory management.

Manufacturing Efficiency

Steel production fell 4.82% to 37,091.67 MT in FY25, while Copper production rose 13% to 6,589.10 MT, showing a shift in efficiency and focus toward the copper segment.

Logistics & Distribution

Distribution is focused on Western India, serving sectors like Automotive, Power, and Infrastructure. Creditor days stood at 116 as of September 2024, helping manage distribution cash flows.

📈 Strategic Growth

Expected Growth Rate

29%

Growth Strategy

The company aims to achieve growth by translating current investments into operating momentum, specifically targeting 100% capacity utilization at the Nardana facility. It is pivoting toward high-value applications such as offshore, elevator, crane, and mining sectors to improve realizations.

Products & Services

Galvanized wire (low and high carbon), steel wires, wire products, and copper products used in power transmission, automobiles, and agriculture.

Brand Portfolio

Bedmutha Group / Bedmutha Industries Limited.

New Products/Services

Expansion into high-value application products for the offshore, elevator, and mining sectors, expected to contribute to higher margins in FY26.

Market Expansion

Targeting the offshore and mining sectors globally and domestically, with a focus on completing facility ramp-ups by the end of the current fiscal year.

Market Share & Ranking

Leading producer of steel wire and wire products in Western India; specific market share percentage not disclosed.

Strategic Alliances

Maintains a 49% ownership in Ashoka Pre-con Private Limited, which is fully consolidated as an associate company.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward specialized wire products for infrastructure. The company is positioning itself by expanding into high-value segments like elevator and crane wires, moving away from commodity-grade products.

Competitive Landscape

Faces competition from large organized players and numerous small-scale unorganized manufacturers in the galvanized wire segment.

Competitive Moat

Moat is built on a 40-year track record, established market position in Western India, and a diversified product portfolio (Steel + Copper). Sustainability is supported by the high entry barrier of large-scale manufacturing (50-acre facility).

Macro Economic Sensitivity

Highly sensitive to Indian economic development and government infrastructure spending, as its products are used in SEBs, power, and construction.

Consumer Behavior

Shift in demand toward higher quality, specialized technical wires for infrastructure and offshore applications.

Geopolitical Risks

Exposed to global demand-supply conditions and trade policies affecting steel and copper pricing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI Listing Regulations. Product standards are influenced by State Electricity Board (SEB) specifications.

Environmental Compliance

Not disclosed as a specific INR cost, but the company operates under industrial pollution and manufacturing standards in Maharashtra.

Taxation Policy Impact

Subject to Indian corporate tax regimes; the company receives subsidy receipts from the Government of Maharashtra which supports profitability.

Legal Contingencies

The company monitors proceedings under the Insolvency and Bankruptcy Code (IBC) 2016 and material orders from regulators, though no specific high-value pending litigation amounts were disclosed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (Steel/Copper) and cyclical demand in the principal markets are the primary risks, potentially impacting margins by 1-2%.