Bemco Hydraulics Ltd (522650)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Bemco Hydraulics' revenue was ₹15.6 Cr (+33.1% year on year, -58.6% on the previous quarter), and net profit ₹2.7 Cr (+89.2% year on year); the operating margin was 21.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹15.6 | +33.1% | -58.6% |
| Operating profit | ₹3.3 | +48.5% | -63.1% |
| Net profit | ₹2.7 | +89.2% | -49.7% |
| EPS (₹) | 0.62 | +87.9% | -50.0% |
| Operating margin | 21.1% | — | — |
📢 Recent Corporate Announcements
Bemco Hydraulics reported a strong year-on-year performance for Q1 FY27, with consolidated revenue rising 33% to Rs 15.58 Cr compared to Rs 11.71 Cr in Q1 FY26. Net profit nearly doubled YoY, reaching Rs 2.72 Cr, driven by improved operational efficiencies and a reduction in other expenses. However, the company experienced a significant sequential decline, with revenue falling 58.6% from the peak March 2026 quarter (Rs 37.67 Cr), reflecting the lumpy nature of capital equipment cycles. The company maintains its niche position as a sole manufacturer for specific railway and automation products.
- Consolidated Revenue from Operations grew 33.1% YoY to Rs 15.58 Cr.
- Consolidated Net Profit increased 89.6% YoY to Rs 2.72 Cr from Rs 1.44 Cr.
- Consolidated EPS rose to Rs 0.62 from Rs 0.33 in the year-ago period.
- Other Expenses decreased to Rs 2.42 Cr from Rs 3.31 Cr YoY, aiding margin expansion.
- Standalone operations contributed Rs 13.31 Cr to revenue, representing 85% of consolidated turnover.
The Board of Directors of Bemco Hydraulics met on August 13, 2026, to approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The meeting lasted four hours, concluding at 3:00 PM. This routine regulatory filing confirms the adoption of the first-quarter performance data and the investor grievance report. Investors should evaluate the detailed results against the company's TTM revenue of Rs 97 Cr and its stated 30% growth target.
- Board approved unaudited financial results for the quarter ended June 30, 2026.
- The board meeting commenced at 11:00 AM and concluded at 03:00 PM on August 13, 2026.
- Investor Grievance Redressal Statement for the quarter ended June 30, 2026, was taken on record.
Bemco Hydraulics Ltd has scheduled a board meeting for August 13, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company is coming off a strong Q4 FY26 where revenue reached Rs 37.67 crore, significantly higher than the Rs 11.71 crore reported in the same quarter of the previous year (Q1 FY26). Investors will be monitoring if the company can maintain its TTM operating margin of 23.6% and its 30% expected growth trajectory. The trading window for insiders has been closed since June 27, 2026, and will remain so until 48 hours after the results are declared.
- Board meeting scheduled for August 13, 2026, to approve Q1 FY27 results.
- Trading window for equity shares closed from June 27, 2026.
- Company reported TTM revenue of Rs 97 crore and PAT of Rs 15 crore.
- Previous year's corresponding quarter (Jun 2025) revenue was Rs 11.71 crore.
- Promoter holding remains stable at 74.69% as of June 2026.
Bemco Hydraulics has announced August 06, 2026, as the record date to determine shareholder eligibility for its upcoming dividend. The company's 68th Annual General Meeting (AGM) is scheduled for August 13, 2026, at 03:30 PM. Share transfer books will remain closed from August 07 to August 13, 2026, for the purpose of the AGM and dividend distribution. The dividend was previously recommended by the board during their meeting on May 25, 2026.
- Record date for dividend entitlement is fixed as August 06, 2026
- 68th Annual General Meeting scheduled for August 13, 2026
- Book closure period set from August 07, 2026, to August 13, 2026
- Board meeting recommending the dividend was held on May 25, 2026
Bemco Hydraulics reported a marginal 2.5% decline in net revenue from operations to ₹80.67 crore for the fiscal year ended March 31, 2026. The company has proposed a final dividend of ₹0.10 per equity share (10% of face value). A significant concern is the 73.7% drop in export revenue, which fell to ₹2.51 crore from ₹9.56 crore in the previous year. Additionally, the company exhibits high customer concentration, with a single client accounting for 22% of total revenue.
- Net revenue from operations decreased to ₹8,066.98 Lakhs in FY26 from ₹8,276.86 Lakhs in FY25.
- Proposed equity dividend of ₹0.10 per share, totaling an outflow of ₹43.73 Lakhs.
- Export revenue saw a sharp decline of 73.7%, falling to ₹251.19 Lakhs from ₹956.20 Lakhs YoY.
- One major customer in the re-railing business contributed ₹1,777.43 Lakhs, or 22% of total revenue.
- Managing Director's remuneration revised to ₹8.50 Lakhs per month for a two-year tenure starting April 2027.
Bemco Hydraulics has issued its 68th AGM notice, proposing a 10% final dividend (₹0.10 per share) for FY26. The company reported a PAT of ₹9.94 Cr on a turnover of ₹81.60 Cr, showing improved margins despite a slight revenue dip from ₹83.48 Cr in FY25. Key agenda items include the re-appointment of promoter directors and a revised MD remuneration of ₹8.50 lakh per month. Notably, the MD will also receive ₹4.50 lakh per month as professional fees from two subsidiaries, and the company has sought approval for ₹6 Cr in related-party transactions.
- Proposed final dividend of 10% (₹0.10 per share) for FY26, absorbing a total of ₹43.73 lakh.
- FY26 Profit After Tax (PAT) grew 8% to ₹9.94 Cr from ₹9.20 Cr in the previous year.
- MD remuneration set at ₹8.50 lakh per month from April 2027, citing 'inadequacy of profits' relative to the proposed scale under Section 197.
- MD to receive additional professional fees totaling ₹4.50 lakh per month from two subsidiaries (Bemco Fluidtechnik LLP and Pegasys Machines Pvt Ltd).
- Approval sought for related-party transactions with Bemco Fluidtechnik LLP involving ₹3 Cr in purchases and ₹3 Cr in sales.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 93.75% YoY to INR 62 Cr in FY21 from INR 32 Cr in FY20. Subsidiary Pegasys Machines Pvt Ltd contributed INR 14.48 Cr to turnover in FY25, while Bemco Fluidtechnik LLP contributed INR 4.00 Cr.
Geographic Revenue Split
Not disclosed in available documents; operations are primarily based in Belgaum, Karnataka.
Profitability Margins
PAT margin improved significantly from 2.6% in FY20 to 6.6% in FY21, a 153% increase. Operating margins were 15.4% in FY21 and are expected to stabilize at 11-12% over the medium term.
EBITDA Margin
Operating margin was 15.4% in FY21, reflecting healthy core profitability from niche engineering products.
Capital Expenditure
The company executed a major capital outlay of INR 19.45 Cr in February 2024 to acquire 100% of Pegasys Machines Pvt Ltd to expand into automated straightening technology.
Credit Rating & Borrowing
CRISIL upgraded the long-term rating to 'CRISIL BB/Stable' in December 2021 (up from BB-), though the rating was subsequently withdrawn in December 2022 at the company's request following a 'no dues certificate' from the banker.
Operational Drivers
Raw Materials
Engineering steel, hydraulic components, and electronic controllers for PLC/PC based automation systems.
Capacity Expansion
Current installed capacity not disclosed in units; however, the acquisition of Pegasys Machines Pvt Ltd adds a new manufacturing line for automatic straightening machines where they are the sole manufacturer in India.
Raw Material Costs
Not disclosed as a specific percentage of revenue; however, the company is classified as an engineering goods manufacturer with costs tied to industrial inputs.
Manufacturing Efficiency
Bank limit utilization was low at approximately 18% through August 2021, indicating efficient liquidity management despite high working capital needs.
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
Growth will be driven by the 100% acquisition of Pegasys Machines Pvt Ltd (INR 19.45 Cr), which provides entry into the automated straightening machine market as the sole domestic manufacturer. The company also leverages its established position as the sole supplier of re-railing products for Indian Railways and specialized equipment for HAL.
Products & Services
Hydraulic presses, re-railing systems, shaft straightening machines, gear roll testers, and PLC/PC based automation systems.
Brand Portfolio
Bemco, Pegasys.
New Products/Services
Automatic straightening machines and PLC-based automation systems acquired through Pegasys, expected to complement the existing hydraulics business.
Market Expansion
Entry into automated machine design and technical consultancy through the Pegasys acquisition.
Market Share & Ranking
Sole manufacturer of re-railing products for Indian Railways and sole manufacturer of automatic straightening machines in India.
Strategic Alliances
Bemco Fluidtechnik LLP (65% partner contribution) and Pegasys Machines Pvt Ltd (100% subsidiary).
External Factors
Industry Trends
The industry is shifting toward automation and PC-based control systems; Bemco's acquisition of Pegasys positions it to capture this 15-20% growth trend in automated engineering solutions.
Competitive Landscape
Operates in a niche engineering segment with limited direct domestic competition for its specialized product lines.
Competitive Moat
Sustainable moat derived from being the sole manufacturer for Indian Railways' re-railing products and the sole domestic provider of specific straightening technology, creating high switching costs and entry barriers.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending (Railways/Defense) and industrial production indices in the automotive sector.
Consumer Behavior
B2B and B2G demand is driven by modernization programs in the Indian Railways and the 'Make in India' initiative in defense.
Regulatory & Governance
Industry Regulations
Complies with general industrial and engineering acts; no specific restrictive industry-specific laws apply to its manufacture of hydraulic equipment.
Legal Contingencies
Secretarial audit for FY25 reported no specific events or actions having a major bearing on the company's affairs, and no investor grievances were pending for over one month.
Risk Analysis
Key Uncertainties
Moderate scale of operations (INR 62 Cr revenue) and high working capital intensity (213 GCA days) pose liquidity risks if order cycles are delayed.
Geographic Concentration Risk
Manufacturing is concentrated at a single location in Belgaum, Karnataka.
Third Party Dependencies
Dependency on the Indian Railways and HAL for a significant portion of specialized niche revenue.
Technology Obsolescence Risk
Mitigated by the acquisition of Pegasys, which provides advanced PLC and PC-based automation technology.
Credit & Counterparty Risk
Receivables risk is inherent in the 213-day GCA cycle, though mitigated by the high credit quality of government and large corporate clients.
