Behari Lal Engineering IPO

Its Net Profit (PAT) margin increased from 8.02% in FY24 to 12.10% in FY26. In simple words, the company is keeping more of every rupee it earns as profit. This steady improvement points to better cost control and more efficient operations.

It used 87.71% of its 119,690 metric tonnes production capacity in FY26, up from 85.47% in FY24. Running plants at high capacity helps spread fixed costs and also suggests that demand for its products remains strong.

As of May 31, 2026, its order book stood at ₹178.57 crore, more than double the ₹85.55 crore recorded in FY24. A growing order book gives the company better revenue visibility and shows that industrial customers continue to place orders with it.

It reported a Return on Capital Employed (ROCE) of 27.11% and Return on Equity (ROE) of 23.60% in FY26. These numbers show that the company is generating healthy profits from the money invested in the business, both from shareholders and lenders.

Its debt-to-equity ratio fell to just 0.06 times in FY26 from 0.21 times in FY24. In other words, the company relies very little on borrowed money. This keeps interest costs low and gives it more financial cushion during weaker economic periods.

Repeat customers contributed 84.69% of its FY26 revenue, or ₹452.28 crore. This strong repeat business points to good customer relationships and shows that the company can consistently meet the quality requirements of industrial buyers.

Alloy steel products, metal rolls, and engineering castings contributed 45.81%, 26.35%, and 19.54%, respectively, to FY26 revenue. Having three major product lines helps the company use its factories efficiently and reduces its dependence on any one product category.

Its top 10 customers accounted for 38% of revenue, or ₹202.92 crore, in FY26. Since the company does not have long-term contracts with these customers, losing even one major buyer could have a noticeable impact on its financial performance.

Raw materials accounted for 61.02% of its total expenses, costing ₹280.66 crore, in FY26. Any sharp rise in the price of scrap metal or ferro alloys, or delays in sourcing them, could disrupt production and put pressure on profit margins.

Its net working capital requirement rose sharply to ₹192.45 crore in FY26 from ₹119.64 crore in FY24. Working capital is the money tied up in day-to-day operations. Working capital days also increased from 98 days in FY24 to 132 days in FY26, meaning cash is now tied up in the business for longer before it is recovered. This puts more pressure on liquidity and can increase the company’s reliance on short-term bank borrowings.

The company had a high customer churn rate of 38.58% in FY26, losing 223 of the 578 customers it served. This points to an unstable customer base and means the company needs to keep finding new customers to maintain its sales.

The automobile industry contributed 38.65% of its revenue, or ₹206.39 crore, in FY26. So, if car sales slow down or the auto industry faces a downturn, demand for the company’s customized products could also take a hit.

Inventory days increased from 34 days in FY24 to 57 days in FY26. This means products and raw materials are staying in the business for longer before being sold or processed, keeping more cash tied up and leaving the company with less financial flexibility.