Financial Performance Q1 FY27 (Ended 30th June 2026)

  • Revenue: ₹700 crore
  • Sales Volume: 5,278 metric tons (9.5% QoQ decrease, 6.5% YoY decrease)
  • EBITDA Margin: 5.43% (10.38% QoQ growth, 63% YoY growth)
  • PAT: ₹20 crore (9.5% QoQ growth, 167% YoY growth)
  • PAT Margin: 2.87% (14% QoQ growth, 84% YoY growth)
  • ROE: 29%
  • ROCE: 18.5%
  • EBITDA per kg: ₹72 (highest achieved)
  • Value-added Products Share: 63% of sales (highest achieved)
  • Export Contribution: 18% of revenue

Key Operational Highlights

  • Capacity Expansion: Completed addition of 35,000 metric tons capacity, now operational
  • Monthly Run Rate: Achieved 2,200 tons in June 2026 alone from total quarterly volume of 5,200 tons
  • New Product Success: Successful launches of transformer products, tin-coated bus bars, and data center products with large dispatches
  • Export Growth: Exported over 100 tons of bus bars to North America in last quarter

Corporate Restructuring Update

  • New Subsidiary Formation: Creating Tieramet Limited as wholly owned subsidiary
  • Business Transfer: All copper business moving from Bhagyanagar Copper to Tieramet
  • Merger Plan: Bhagyanagar Copper to merge with Bhagyanagar India while Tieramet demerged outside
  • Residual Assets: Bhagyanagar India will retain three land parcels in Hyderabad and windmill project
  • NCLT Hearing: Scheduled for 7th August 2026
  • Purpose: Value unlocking and focused copper business operations

Market Outlook & Growth Strategy

  • Indian Copper Demand: Projected 2.4 million metric tons by 2030
  • Secondary Copper Demand: Expected to double from 0.7 million to 1.4 million tons in next 5 years
  • Growth Sectors: Positioned in high-growth sectors including EVs, AI data centers, transformers, and electrification
  • Volume Guidance: 12-15% growth for FY27 (revised from 15-20% due to April-May disruptions)
  • Margin Outlook: EBITDA margin maintained at 5-5.5% for FY27
  • Value-added Mix Target: Gradually increasing from 63% to 68-69% over 3-4 years
  • Export Target: 12-15% of revenue for FY27

Capex and Expansion Plans

  • Capex Plan: ₹40 crore over FY27 and FY28
  • Capacity Expansion: 10,000 tons additional capacity (from 35,000 to 45,000 tons) expected operational by June 2027
  • Digital Transformation: Complete digital transformation planned over next year automating all processes

Customer Additions

  • Transformer Division: Added Crompton Greaves, TMC, Atlanta
  • AI Data Center Bus Bars: Added Blue Star, Micron, OBO, L&T

GST Contingency Disclosure

  • Amount: ₹17 crore demand for FY2022-23 period
  • Nature: Input credit reversal due to retrospective cancellation of supplier's GST registration
  • Management View: Confident of winning case in tribunal due to proof of material receipt (lorry tracking, videos, photographs, payment records)
  • Status: Amount deposited but expected recovery

Fundraising Update

  • First Tranche: ₹52 crore finalized, expected in bank by August 2026
  • Second Tranche: Planned for March 2027 after demerger completion
  • Total Planned: Approximately ₹150 crore

Debt Projection

  • FY30 Debt Estimate: ₹300-350 crore as per projections
  • Cash Flow: Considered sufficient with 5% EBITDA margin to fund growth through 2030

Product Margin Analysis

  • Highest Margin Products: Automobile and switchgear components (double-digit margins)
  • Medium Margin: Transformer winding (single-digit)
  • Lower Margin: Bus bars (single-digit, varies by application)
  • Highest Growth Potential: Transformer/motor winding and bus bar segments

Raw Material Sourcing

  • Import Dependency: 75% of scrap imported
  • April-May Disruption: Trade route disruptions affected sourcing, normalized by June
  • Current Status: Sourcing normalized with materials available from worldwide sources

Hedging Strategy

  • Inventory Hedging: Approximately 85% of inventory hedged on exchange
  • Daily Management: Purchases and sales hedged on daily basis
  • Margin Requirements: Dependent on copper price movements

Plastic Recycling Business

  • Revenue Contribution: Less than 1% of total (approximately ₹50 crore at ₹5,000 crore revenue)
  • Margin Profile: High margins (30-50%) as plastic obtained free with cables
  • FY30 Inclusion: Part of ₹5,000 crore revenue target

Management Team Present

  • Devendra Surana (Managing Director)
  • Advait Surana (Business Development Manager)
  • Surendra Bhutoria (Chief Financial Officer)
  • Rahul Surana (Finance Manager)
  • Anusha Devi (Accounts Manager)

Forward-looking Statements

  • Revenue Target: ₹5,000 crore by FY30 (conservative estimate)
  • Volume Growth: 15% annually from next year onwards
  • Margin Target: Gradual improvement to 5.4-5.5% by 2030