Bhansali Engineering Polymers Limited

Bhansali Engineering Polymers Limited (BEPL) Annual Report for the Financial Year ended March 31, 2026 (FY 2025-26).

Business overview Bhansali Engineering Polymers Limited (BEPL) manufactures Acrylonitrile Butadiene Styrene (ABS) and Styrene Acrylonitrile (SAN) resins, categorized as Highly Specialized Engineering Thermoplastics. The company also engages in trading raw materials for these resins. BEPL serves a diverse customer base, primarily Business-to-Business (B2B) clients including major Original Equipment Manufacturers (OEMs) in the automotive sector and Micro, Small, and Medium Enterprises (MSMEs). Its products are used across industries such as automobiles, home appliances, electronics, healthcare, and toys, primarily in India and with minor international trading.

Key facts

• Petrochemical products (ABS and SAN) contributed 92.24% of the total turnover, with trading sales accounting for 7.76% in FY 2025-26.
• The company's installed capacity is 75,000 TPA, with a production volume of 71,601.50 TPA and sales volume of 71,501.12 TPA in FY 2025-26.
• BEPL operates a Joint Venture, Bhansali Nippon A&L Private Limited, with a 50% equity share, focusing on sales support services.
• Promoters and the Promoter Group hold a significant 57.47% of the total equity capital.

Recent developments (FY 2025-26)

• Capacity expansion from 75,000 TPA to 100,000 TPA is in progress, with commissioning anticipated by September 2026.
• The R&D Center successfully developed 12 new grades and improved 15 existing grades, with 2 improved grades already commercialized. Additionally, 169 new color grades were developed, 47 of which are commercialized.
• The company committed ₹442.54 lakhs towards installing a 1300 KW DC Solar Plant at Satnoor, along with other energy conservation measures like Variable Frequency Drives (VFDs) and integrated solar lights.
• Implemented Zero Liquid Discharge (ZLD) systems at both manufacturing plants, treating wastewater for green belt development.
• The Board declared three interim dividends of ₹1/- each and recommended a final dividend of ₹1/- per equity share, totaling ₹4/- (400%) for FY 2025-26.

Key risks flagged by management

• Raw Material Sourcing: High import dependence (over 85%) for key raw materials like Styrene and Acrylonitrile monomers exposes the company to foreign exchange fluctuations and international commodity price volatility.
• Environmental & Safety Compliance: Risks include non-compliance with environmental regulations leading to adverse community perception, and inherent operational risks in manufacturing, which could result in financial losses, medical costs, and legal liabilities.
• Regulatory & Ethical Non-Compliance: Non-adherence to regulatory and legal requirements may damage the company's reputation and lead to serious consequences, including penalties and operational disruptions.

Pros

• Robust R&D pipeline: Consistent development of new products and property enhancements fosters customer loyalty and supports margin improvement.
• Zero-Debt Status: Maintains a healthy financial position with no borrowings, providing financial stability and operational agility.
• Strong promoter commitment: High promoter shareholding suggests a vested interest in long-term growth and stability.

Cons

• Revenue and Sales Volume Decline: Net operational revenue and sales volume decreased in FY 2025-26 compared to the previous fiscal year.
• Decreased Liquidity Ratios: Current Ratio significantly declined from 11.25 to 5.88, and Inventory Turnover Ratio decreased from 7.79 to 5.62, potentially indicating reduced liquidity or slower inventory movement.
• Exposure to external market volatility: Significant reliance on imported raw materials makes the company vulnerable to global crude oil price fluctuations and currency exchange rates.