Behari Lal Engineering Reports Strong Q1 Growth, Expands Capacity

Q1 FY27 revenue from operations: INR 151.7 crore, up 18% YoY.

Q1 FY27 PAT: INR 19.2 crore, up 24.5% YoY.

Reader Takeaway: Strong margins improve outlook, but expansion execution remains key.

What just happened

Behari Lal Engineering Ltd reported a strong first quarter performance for FY27, supported by revenue growth and improved profitability.

Revenue from operations increased 18% year-on-year to INR 151.7 crore, while total income stood at INR 153.8 crore. EBITDA rose 23.4% year-on-year to INR 29.7 crore, with an EBITDA margin of 19.6%.

Operating EBITDA, excluding other income, stood at INR 27.6 crore with an operating margin of 18.2%.

Profit after tax increased to INR 19.2 crore compared with the previous year, marking a 24.5% year-on-year rise.

Why this matters

The company is focusing on improving its product mix by increasing the contribution of higher-value products. These products accounted for 60.4% of revenue in Q1 FY27 compared with 55.7% a year earlier.

Management said this shift is central to improving margins even if overall volume growth remains moderate.

EBITDA per tonne reached approximately INR 13,457, an increase of 8.8% year-on-year, reflecting better value realisation from the product portfolio.

Capacity expansion plans

Behari Lal Engineering is developing Unit 3, which is expected to be commissioned in Q1 FY28. The facility will focus on centrifugal casting products, including Indefinite Double Poured rolls and High-Speed Steel rolls.

The company has planned INR 80 crore of capital expenditure for FY27. Funding will come through a combination of IPO proceeds and internal accruals.

The company had raised INR 93 crore through fresh capital during its IPO process.

Defence and aerospace opportunity

Behari Lal Engineering has entered defence and aerospace segments, with prototyping activity currently underway.

Management said these markets involve longer approval cycles, and meaningful revenue contribution is expected from FY28 onwards. The company expects gradual growth as customer approvals are completed.

Risks to watch

The commissioning timeline of Unit 3 remains an important execution milestone. Delays could affect planned capacity expansion.

The defence business also carries longer development cycles due to testing and approval requirements.

Higher-value products may require longer production cycles, which could increase inventory and working capital requirements.

What to track next

Investors will monitor the progress of Unit 3, growth in high-value product contribution and the pace of defence-related commercialisation. Management aims to increase high-value products to around 70% of sales and improve operating EBITDA margins over the next two to three years.