💰 Financial Performance

Revenue Growth by Segment

The Fashion business is the primary driver, with consolidated revenue reaching INR 679.4 Cr in H1 FY26, a 29.36% increase from INR 525.2 Cr in H1 FY25. Standalone fashion revenue for Q2 FY25 was INR 233.7 Cr compared to INR 184.1 Cr in Q2 FY24, reflecting a 26.9% growth.

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company operates through international subsidiaries like Ultima S.A. (Switzerland), Ultima Italia SRL (Italy), and Design Industry China Ltd, indicating a significant global footprint.

Profitability Margins

Net Profit After Tax (PAT) for H1 FY26 stood at INR 21.4 Cr, representing a 3.2% margin, up from a 2.6% margin (INR 13.8 Cr) in H1 FY25. This 55.03% jump in PAT highlights improved bottom-line efficiency despite rising costs.

EBITDA Margin

EBITDA margin for H1 FY26 was 10.1% (INR 68.4 Cr), a slight compression from 10.4% (INR 54.8 Cr) in H1 FY25. The compression is attributed to raw material costs rising to 61.3% of revenue from 59.8% YoY.

Capital Expenditure

Cash outflow for the purchase of fixed assets was INR 5.13 Cr in H1 FY25, compared to INR 7.43 Cr in the previous year. Capital advances/creditors (net) contributed INR 0.23 Cr in H1 FY25.

Credit Rating & Borrowing

Total borrowings as of March 31, 2025, were approximately INR 499.84 Cr, comprising INR 440.66 Cr in current borrowings and INR 59.18 Cr in non-current borrowings. Finance costs for H1 FY26 were INR 24.7 Cr, implying an effective interest rate of approximately 9.8% per annum.

⚙️ Operational Drivers

Raw Materials

Leather and fabrics (implied by 'Fashion business' and 'Leather Enterprises'). Raw material consumption represents 61.3% of total revenue (INR 406.4 Cr in H1 FY26).

Import Sources

Not specifically disclosed, though the presence of a subsidiary, Design Industry China Ltd, suggests sourcing or manufacturing operations in China.

Raw Material Costs

Raw material costs rose to INR 406.4 Cr in H1 FY26 (61.3% of revenue) from INR 311.5 Cr in H1 FY25 (59.8% of revenue). The company manages these costs through strategic cost control and operational optimization to mitigate global inflationary pressures.

Manufacturing Efficiency

EBITDA performance of INR 68.4 Cr in H1 FY26 demonstrates solid operational efficiency despite a 30% growth in revenue, maintaining margins above 10%.

Logistics & Distribution

Not specifically disclosed; however, 'Other Expenses' (including logistics) increased to INR 167.8 Cr in H1 FY26 from INR 127.7 Cr in H1 FY25.

📈 Strategic Growth

Expected Growth Rate

29.36%

Growth Strategy

Growth is driven by operational optimization, capitalizing on strong demand across key market segments, and disciplined cost management. The company is also leveraging its international subsidiaries (Ultima, Design Industry) to expand its global fashion footprint.

Products & Services

Leather garments, fashion apparel, leather accessories, and real estate development (through associates).

Brand Portfolio

Bhartiya International, Ultima, Design Industry, and World Fashion Trade.

New Products/Services

Not specifically disclosed, though the company focuses on 'operational optimization' to support new demand in fashion segments.

Market Expansion

Expansion is targeted through international subsidiaries in Italy, Switzerland, and China to capture global fashion demand.

Strategic Alliances

Key associates include Bhartiya Urban Private Limited (Real Estate) and Tada Mega Leather Cluster Private Limited.

🌍 External Factors

Industry Trends

The fashion industry is shifting toward operational efficiency and cost-disciplined growth to counter macroeconomic volatility. BIL is positioning itself by optimizing its global supply chain and manufacturing base.

Competitive Landscape

Competes in the global leather and fashion apparel market; specific competitors are not named but the landscape is described as 'challenging' and 'inflationary'.

Competitive Moat

BIL's moat is built on its integrated global presence (Italy, Switzerland, China) and its ability to maintain stable profitability (10%+ EBITDA) while scaling revenue at ~30% YoY. This scale and operational efficiency are difficult for smaller competitors to replicate.

Macro Economic Sensitivity

High sensitivity to global inflation and supply chain stability. Inflationary pressures directly impact the 61.3% raw material cost base.

Consumer Behavior

Strong demand across key market segments is driving the 29.36% revenue growth, suggesting resilient consumer appetite for BIL's fashion products.

Geopolitical Risks

Ongoing geopolitical issues are cited as factors causing supply chain disruptions and fluctuating commodity prices, affecting input costs for the fashion business.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Ind AS 115 for revenue recognition and Ind AS 116 for leases. The company must also comply with the Companies Act, 2013, regarding internal financial controls.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 30.3% (INR 9.3 Cr tax on INR 30.7 Cr PBT).

Legal Contingencies

The CARO report (Clause i-c) notes that title deeds for certain immovable properties are not held in the name of the respective companies. No specific case values for pending litigation were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the performance of the associate, Bhartiya Urban Private Limited, which reported losses due to high depreciation, resulting in a share of loss for BIL of INR 5.92 Cr in H1 FY25.

Geographic Concentration Risk

Significant exposure to the Indian market for manufacturing and international markets (Europe/China) for sales and design.

Third Party Dependencies

Dependency on global suppliers for leather and raw materials, as evidenced by the 61.3% cost contribution.

Technology Obsolescence Risk

The audit highlights the importance of IT application controls over revenue recognition, indicating a reliance on digital systems for financial reporting.

Credit & Counterparty Risk

Trade receivables stood at INR 187.86 Cr as of March 2025. The audit procedures include testing revenue cut-off and subsequent collections to ensure receivable quality.