Bhansali Engineering Q2 Results October 19, 2026: Profit Up 54%, but the Stock Fell 8.6%

Bhansali Engineering Q2 results looked good on paper. The ABS and SAN resin maker reported on October 19, 2026 that consolidated net profit rose 54.4% year-on-year to ₹62.46 crore for the September quarter, on revenue up 24.1% to ₹403.37 crore, according to its results filing with BSE. The market wasn’t impressed. Moneycontrol’s results tracker showed the stock at ₹117.46 on Monday, down 8.63%.

Bhansali Engineering Q2 results: the key figures

All numbers are consolidated, from the company’s filing, which reports in ₹ lakh. We’ve converted them to crore.

• Revenue from operations: ₹403.37 crore, against ₹325.10 crore a year ago (up 24.1%) and ₹472.15 crore in the June quarter (down 14.6%).
• Profit before tax: ₹86.86 crore, up 58.1% from ₹54.94 crore.
• Net profit: ₹62.46 crore, against ₹40.45 crore a year ago and ₹65.60 crore in Q1, which makes it 4.8% lower sequentially.
• EPS: ₹2.51 for the quarter, up from ₹1.63.
• First half: revenue of ₹875.52 crore, up 38.3%, and net profit of ₹128.06 crore, up 48.3%.

Why a 54% profit jump still got sold

The filing says nothing about the share price, so what follows is our reading, not its explanation. Two things stand out.

First, the quarter was weaker than the one before it. Revenue slipped about 15% from Q1 and profit dipped too. Part of the revenue gap is in traded goods: purchases of stock-in-trade fell to ₹12.78 crore from ₹75.14 crore in Q1. Margins were actually better. By our arithmetic (profit before tax and the joint venture share, less other income, plus finance cost and depreciation), operating profit was about ₹78.9 crore, or roughly 19.6% of revenue. That compares with 17.5% in Q1 and 15.1% a year ago.

Second, the expansion is late. Bhansali had planned to lift ABS capacity from 75,000 tonnes a year to 1,00,000 tonnes at an estimated cost of ₹200 crore, with completion expected by September 2026. The board now says it is confident of finishing by the end of March 2027. It blamed the war situation in the Gulf and between Russia and Ukraine: imported equipment is stuck for want of shipping containers, foreign service engineers can’t fix commissioning dates, and a reactor is now expected only in November 2026. Capital work in progress rose to ₹44.93 crore from ₹30.70 crore at the end of March.

The results also came out mid-session. The board meeting ran from 11 am to 1:05 pm, so traders had the afternoon to react.

A second interim dividend, and a few balance-sheet moves

The board declared a second interim dividend of ₹1 a share, which is 100% of the ₹1 face value. The record date is Saturday, October 24, 2026, and payment is due on or before November 17. With the ₹1 declared in July, interim dividends for FY27 now total ₹2 a share.

On the balance sheet, cash and cash equivalents fell to ₹157.26 crore at September-end from ₹386.80 crore in March, while loans shown under current assets rose to ₹306.63 crore from ₹175.91 crore. Trade receivables went up about 22% to ₹309.18 crore, and payables to creditors other than micro and small enterprises dropped to ₹62.78 crore from ₹148.04 crore. The filing doesn’t explain these shifts, so we’d look for detail in the annual report. Our guide to reading quarterly results covers why working capital deserves as much attention as profit.

The next session

Markets are shut today for Dussehra (our holiday note has the details), so Wednesday is the first chance for the stock to respond after Monday’s fall. Other companies that reported the same day are in our October 19 results line-up.

Our take: the year-on-year numbers and the margin trend are solid. The doubt is about timing, both of the new ABS capacity and of whether the June quarter’s revenue pace comes back.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from Bhansali Engineering Polymers’ filing with BSE and Moneycontrol’s results tracker, both linked above. Please consult a SEBI-registered investment adviser before making any investment decision.