💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 (ending Sept 2025) reached approximately INR 652.68 Cr, calculated from total expenses of INR 535.79 Cr and PBT of INR 116.89 Cr. The company focuses on ABS and SAN resins, with growth driven by a shift toward specialty grade ABS which offers higher realizations compared to standard grades.

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company operates two primary plants in Satnoor (Madhya Pradesh) and Abu Road (Rajasthan) serving a domestic customer base of over 1,000 clients.

Profitability Margins

Operating profitability has shown significant improvement, rising to 16.3% in late 2017 from a historical range of 3% to 12% (FY12-FY17). For FY25, the company maintained a steady PAT of INR 179.82 Cr compared to INR 179.73 Cr in FY24, representing a marginal YoY increase despite market volatility.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 stood at INR 103.35 Cr (Consolidated). The company's ability to sustain double-digit operating profitability is a key sensitivity factor for its credit profile.

Capital Expenditure

BEPL significantly scaled down its planned capex from INR 300 Cr to INR 70 Cr, opting to fund the expansion entirely through internal accruals to maintain a debt-free status.

Credit Rating & Borrowing

CRISIL previously assigned a 'Positive' outlook with ratings of BBB/A3+ before withdrawal at the company's request. The company maintains a strong financial profile with an interest coverage ratio of 20x and an absence of term debt.

⚙️ Operational Drivers

Raw Materials

Acrylonitrile, Butadiene, and Styrene are the primary raw materials, collectively accounting for 70% to 80% of the total operating cost.

Import Sources

Bulk of raw materials are imported from international markets, exposing the company to global commodity cycles and forex risks. Specific countries are not listed, but procurement is linked to global crude oil derivatives.

Key Suppliers

Not disclosed in available documents; however, the company maintains a technical tie-up with Nippon A&L for specialty grade ABS production.

Capacity Expansion

The Abu Road plant has an ABS resin manufacturing capacity of 100,000 TPA (upgraded from 80,000 TPA). The Satnoor unit provides additional capacity for the manufacturing process.

Raw Material Costs

Raw material costs represent 70-80% of revenue. In H1 FY26, the company saw a working capital outflow of INR 30.06 Cr due to inventory increases, reflecting strategic procurement of crude-linked derivatives.

Manufacturing Efficiency

Efficiency is driven by the use of SAP for accounting and internal controls, alongside technical expertise to manufacture over 50 grades of ABS in 1,200 shades.

Logistics & Distribution

Not specifically disclosed; however, the company serves a diversified base of 1,000+ customers across automotive, electrical, and consumer durable sectors.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth is targeted through the expansion of ABS capacity to 100,000 TPA and a strategic shift toward specialty grades via the Nippon A&L tie-up. The company focuses on high-demand sectors like automotive and household durables while maintaining a debt-free balance sheet to ensure liquidity for internal-accrual-funded expansions.

Products & Services

ABS (Acrylonitrile Butadiene Styrene) resins, SAN (Styrene-acrylonitrile) resins, and Specialty grade ABS used in automotive and electronics.

Brand Portfolio

Abstron

New Products/Services

Specialty grade ABS resins with 50+ grades and 1,200 shades; these value-added products are expected to sustain double-digit operating margins.

Market Expansion

Targeting increased offtake from existing large-scale clients in the automotive and electrical industries, leveraging the domestic demand for ABS which is currently heavily met by imports.

Market Share & Ranking

Leading ABS manufacturer in India; one of the few domestic producers in a market dominated by imports.

Strategic Alliances

Technical tie-up with Nippon A&L (Japan) and a Joint Venture (Bhansali Nippon A&L Private Limited) which contributed INR 1.12 Cr in dividends in H1 FY26.

🌍 External Factors

Industry Trends

The Indian ABS industry is characterized by a high reliance on imports. BEPL is positioned to benefit from the 'Make in India' trend and increasing domestic demand for high-performance plastics in the EV and electronics sectors.

Competitive Landscape

Competes primarily against large-scale imports and a few domestic petrochemical players. Competitive advantage is maintained through specialty grade customization.

Competitive Moat

The moat is built on technical collaboration with Nippon A&L, a vast library of 1,200+ color shades, and a debt-free status that allows for competitive pricing and continuous supply to large OEMs.

Macro Economic Sensitivity

Highly sensitive to GDP growth in the automotive and consumer durables sectors, which drive the demand for engineering plastics.

Consumer Behavior

Increasing consumer preference for high-quality finishes in home appliances and lightweight materials in automobiles drives demand for BEPL's specialty ABS.

Geopolitical Risks

Trade barriers or supply disruptions in crude-producing regions directly impact the availability and pricing of Styrene and Butadiene monomers.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental norms for chemical manufacturing and import regulations for petrochemical monomers. Compliance is managed through internal control systems and SAP-based monitoring.

Environmental Compliance

The company is an ISO 9001:2015 certified entity; specific ESG spend figures were not disclosed in the provided text.

Taxation Policy Impact

Current tax expense for H1 FY26 was INR 30.44 Cr on a consolidated PBT of INR 116.89 Cr, representing an effective tax rate of approximately 26%.

Legal Contingencies

No specific pending court case values were disclosed; the company stated that requirements to spend 2% of average net profit on CSR were 'Not Applicable' for the specific reporting period in the MDA.

⚠️ Risk Analysis

Key Uncertainties

Volatility in crude oil prices (impacting 70-80% of costs) and forex fluctuations are the primary risks, with a potential margin impact of 5-10% during extreme price swings.

Geographic Concentration Risk

Manufacturing is concentrated in Madhya Pradesh and Rajasthan, though the customer base is spread across India.

Third Party Dependencies

High dependency on global suppliers for Acrylonitrile and Styrene monomers, as these are not fully sourced domestically.

Technology Obsolescence Risk

Mitigated by the long-term technology tie-up with Nippon A&L to stay at the forefront of specialty polymer grades.

Credit & Counterparty Risk

Low risk; trade receivables stood at INR 104.15 Cr in H1 FY26, with a strong track record of serving blue-chip clients like Samsung and Honda.