💰 Financial Performance

Revenue Growth by Segment

The PCB segment revenue grew by 8.63% YoY to INR 3,013.30 Lakhs in H1 FY26 compared to INR 2,773.98 Lakhs in H1 FY25. Conversely, the Brand Licensing Fee segment saw a significant decline of 26.90% YoY, falling to INR 918.30 Lakhs from INR 1,256.25 Lakhs in the previous year's corresponding period.

Geographic Revenue Split

Not disclosed in available documents; however, operations are primarily based in India with registered offices in Kerala and Karnataka.

Profitability Margins

Profitability saw a sharp decline; Standalone Profit Before Tax (PBT) margin for H1 FY26 was 6.47% (INR 254.48 Lakhs), a massive drop from the 43.47% margin (INR 1,751.86 Lakhs) recorded in H1 FY25. This was largely due to a reduction in other income and higher relative operating costs.

EBITDA Margin

Standalone PBDIT for Q2 FY26 was INR 81.76 Lakhs on a total income of INR 617.46 Lakhs, representing an EBITDA margin of 13.24%. This reflects a contraction compared to the previous year's performance where higher brand licensing fees supported margins.

Capital Expenditure

Historical capital work-in-progress was recorded at INR 1,490.34 Lakhs as of September 30, 2025, compared to INR 805.35 Lakhs as of March 31, 2025, indicating an investment of INR 684.99 Lakhs in ongoing projects during the half-year.

Credit Rating & Borrowing

Brickwork Ratings previously assigned a rating of BWR B/Stable/A4 for bank loan facilities of INR 28.00 Cr. As of June 21, 2021, the rating was moved to an advisory status due to being overdue for surveillance, indicating potential transparency or information-sharing risks.

⚙️ Operational Drivers

Raw Materials

Raw materials primarily consist of components for Printed Circuit Boards (PCBs), representing 59.15% of total revenue at a cost of INR 2,325.47 Lakhs in H1 FY26.

Raw Material Costs

Cost of materials consumed rose to INR 2,325.47 Lakhs in H1 FY26 from INR 2,096.47 Lakhs in H1 FY25, an increase of 10.92% YoY. This increase outpaced revenue growth in the PCB segment, suggesting rising input costs or a shift in product mix.

Logistics & Distribution

Other expenses, which include distribution and administrative costs, were INR 747.18 Lakhs for H1 FY26, representing 19.00% of revenue from operations.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is leveraging its legacy brand through a licensing agreement with Reliance Retail Limited (RRL) for consumer durables. This strategy aims to generate high-margin royalty income without the capital intensity of manufacturing, while the company focuses its internal manufacturing capabilities on the PCB segment.

Products & Services

The company manufactures Printed Circuit Boards (PCBs) and provides brand licensing services for consumer durable products including televisions and household appliances.

Brand Portfolio

BPL

Market Expansion

The company is utilizing the distribution reach of Reliance Retail Limited to expand the market presence of BPL-branded consumer durables across India.

Strategic Alliances

A key strategic alliance exists with Reliance Retail Limited (RRL) for the usage of the 'BPL' brand for consumer durable products, where BPL receives a fee based on RRL's sales performance.

🌍 External Factors

Industry Trends

The Indian consumer electronics industry is shifting toward large-format organized retail partnerships. BPL's positioning as a brand licensor to Reliance Retail aligns with this trend, though it makes the company dependent on the partner's retail execution and market share.

Competitive Landscape

The company competes with other domestic and international PCB manufacturers and faces competition in the consumer durables space from brands like Samsung, LG, and various private labels.

Competitive Moat

BPL's moat is its multi-decadal brand recognition in the Indian consumer electronics space. This allows it to generate revenue through licensing (INR 918.30 Lakhs in H1 FY26) with minimal operational overhead, though the moat's value depends on the brand's continued relevance to modern consumers.

Macro Economic Sensitivity

The brand licensing revenue is highly sensitive to Indian consumer discretionary spending and retail inflation, as fees are calculated as a percentage of sales revenue from consumer durables.

Consumer Behavior

Shifts toward online and organized retail purchasing benefit the company's partnership with Reliance Retail.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the Companies Act, 2013, specifically Section 55 regarding the redemption of preference shares, which currently restricts the company from redeeming shares due to insufficient accumulated profits.

Taxation Policy Impact

The company has not made provisions for deferred tax or current tax for the period ended September 30, 2025, stating these will be addressed at the end of the financial year.

Legal Contingencies

The company faces a significant constraint regarding the redemption of Preference Shares (valued at INR 6,878.87 Lakhs as of Sep 30, 2025). Under Section 55 of the Companies Act, 2013, these can only be redeemed out of profits, which the company currently lacks.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'sudden outflow of funds' mentioned in disclosures, which poses a risk to liquidity and the ability to fund future expansion projects.

Geographic Concentration Risk

Operations are concentrated in India, particularly in Kerala (Palakkad) and Karnataka (Bangalore).

Third Party Dependencies

High dependency on Reliance Retail Limited for the brand licensing revenue stream, which accounted for nearly a quarter of total income in H1 FY26.

Technology Obsolescence Risk

The PCB manufacturing segment faces constant technology shifts; failure to upgrade manufacturing facilities (INR 11,288.24 Lakhs in PPE) could lead to loss of competitiveness.

Credit & Counterparty Risk

Trade receivables stood at INR 805.35 Lakhs as of September 30, 2025, up from INR 638.82 Lakhs in March 2025, representing a 26.07% increase and indicating a potential slowdown in collections.