| Experienced Promoters and Management Team
BIL is led by Mr. Hardik Bharat Patel, Chairman and Whole-Time Director, also the promoter of the holding Company, which acquired the company through the insolvency resolution process and has since been actively involved in its operations and strategic direction. The company is overseen by an experienced board of directors and management team with exposure to manufacturing, finance, and business operations. The promoters have extended financial support to the company through unsecured loans, reflecting their commitment towards operational continuity and business revival. Acuité believes that the experience of the promoters and management, along with their continued support, will aid BIL's operational stability and growth prospects over the medium term.
Improving Operating Income albeit poor Margins
BIL reported operating income of Rs. 76.97 crore in FY2026 as against Rs. 18.61 crore in FY2025, supported by the recommencement of commercial operations at its Yamunanagar plant from December 1, 2025, following the implementation of the resolution plan. During the year, the company undertook refurbishment, infrastructure upgrades, and debottlenecking initiatives to revive operations. Revenue was primarily generated from the sale of writing, printing, and specialty paper products. The company's operating profitability remained negative, with EBITDA margin at (113.73)% in FY2026 against (61.17)% in FY2025, owing to the low scale of operations and under-absorption of fixed costs during the initial ramp-up phase. Consequently, the PAT margin remained negative at (174.96)% in FY2026, albeit improving from (358.69)% in FY2025. The company reported revenue of Rs. 84.47 crore in Q1 FY2027. Operating performance improved, with EBITDA loss at Rs. 14.51 crore and EBITDA margin at (-17.18)%. in Q1 FY2027. The PAT loss stood at Rs. 30.63 crore in Q1 FY2027, reflecting gradual stabilisation of operations and ramp-up at the Yamunanagar facilities. Acuité believes BILT's operating performance is expected to improve over the medium term, supported by the stabilisation and ramp-up of production at its Yamunanagar facility.
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| Below average financial risk profile
The company’s financial risk profile is below average, marked by a deterioration in net worth, high leverage and weak debt protection metrics. The tangible net worth declined to Rs. 326.59 crore as on March 31, 2026, from Rs. 460.90 crore as on March 31, 2025, primarily on account of losses incurred during the year. Total debt increased to Rs. 782.64 crore as on March 31, 2026, from Rs. 687.80 crore as on March 31, 2025, as on 31st March 2026 the Debt Consist of USL from director of Rs 144.33 Cr , NCDs of Rs 519.30 Cr., NCRPS of Rs 108.00 Cr. and short term borrowing from financial institution of Rs. 13.55 Cr. Consequently, gearing deteriorated to 2.40 times as on March 31, 2026, from 1.49 times in the previous year. Further, the TOL/TNW ratio stood at 2.99 times as on March 31, 2026, compared with 1.71 times as on March 31, 2025. The company’s debt protection metrics remained weak, with the Interest Coverage Ratio (ICR) and Debt Service Coverage Ratio (DSCR) standing negative at (1.19) times and (0.91) times in FY2026. Further, the Net Cash Accruals to Total Debt (NCA/TD) ratio remained negative at (0.16) times in FY2026, reflecting inadequate cash generation and continued pressure on the company’s financial risk profile Acuite believes that the financial risk profile is likely to remain constrained in the near term, though gradual improvement may be witnessed with the scaling up of operations and improvement in cash accruals.
Intensive Working capital cycle
BIL’s operations are working capital intensive as the Gross Current Assets (GCA) days stood 493 days in FY2026 as against 1,359 days in FY2025. The high GCA levels are primarily on account of significant other current assets. Current assets mainly comprise statutory dues receivable and balances recoverable from government authorities. The inventory holding period improved to 90 days in FY2026 from 134 days in FY2025. The company generally maintains raw material inventory of around 7 days and finished goods inventory of 10-15 days. Debtor days increased to 30 days in FY2026 from 1 day in FY2025, in line with the average credit period of around 20 days extended to customers. The company's supplier credit remains elevated, as reflected in creditor days of 519 days as on FY2026, although the average credit period agreed with suppliers is around two months. Acuite believes that the working capital management of the company is likely to improve gradually with the stabilisation and scale-up of operations.
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