@Jeferson_S Hi, You indicated “based on management commentary”, however how it will be possible? Last 4-5 years no revenue growth and negative profit growth. I was tracking in past but not recently, is there any change in business model etc.? Thx
Your skepticism is completely valid, especially considering how the business has performed over the last 8–12 quarters. To be honest, even I think it’s a pretty ambitious goal. Is it possible? Maybe. But based on how they’ve delivered over the past two years, it definitely looks difficult.
What surprises me, though, is how consistently management reiterates this on almost every concall, that they’re targeting $1 billion in revenue in the next couple of years. That level of conviction is interesting.
At this point, I’m more curious to see how this plays out. Either we’re going to see a company that ends up being remembered for consistently over promising and under delivering (if they miss this milestone), or BirlaNu could go down as a company that was confident about the cycle, gave bold guidance of 25%+ revenue growth for 3–4 years, and actually delivered by doubling revenues.
Fingers crossed.
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Hi All,
What do we all think about the company not doing concall so far for the last quarter? Surprising as they have been pretty regular with their concalls over the last 2 years. Also, resignation by their chief procurement officer. What is the feeling about this? It’s not a good practice to not have concall especially during the tough times right? Is it that there is a major management shakeout happening or some other corporate governance issue? I am just trying to assess if this event is a red, orange or yellow flag? Confused.
Disclaimer: Holding
CG is the last thing I would worry about from Birla clan - they don’t care about milking through valuations or personal wealth in general. It is a falling knife and moving to the other (unfavorable) extreme. In general building materials (bulk or branded) are going through a brutal downcycle; look at tiles, ceramics, pipes. it invariably impacts BirlaNU because their money (ROI) coming from building products caters to real India beyond Tier 1/2 who hasn’t seen wage/margin growth in ages. That combined with excess capacities (in the market) either operating at breakeven avoiding folding down or ultimately consolidating is a difficult phase (some lapped up by dear BirlaNU for example). Coming to BirlaNU specifically they have so many moving parts that markets tends to just avoid valuing it as a true sum of parts.
Other than that, missing concall while an oddity, shouldn’t be much of a concern. Coming to CPO resigning, amongst the managers only Akshat and maybe CFO matters. Rest all are replaceable at a whim and they themselves don’t stick to one company.
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Sorry to come here late Nitin. Valuable opinion 
. I am still holding the whole quantity. Parador is the only risk it seems & a pretty big risk which is actually playing out. But India business seems to be turning around. Of course war impact can delay the actual fill up but that’s fine. Management seems confident about Parador. I attended the latest concall. Let’s see.
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I am also holding onto this, even technically this is at comfortable zone from the monthly perspective.
Stock has given alot of pain. Holding since 4 years and it is 50% down for me, i am still not in more mood to average this. But let see how the numbers will be reflected post upcoming quarters.
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BirlaNu FY26 shows a gap between weak reported earnings and improving operating trends.
PAT remains weak due to:
~ losses in Parador Europe
~ depreciation/amortisation
~ forex and finance costs
~ impairment/provisions
But core operations seem better
Key FY26 points:
~ Revenue still grew despite weak Europe
FY26 revenue: ₹3,730 Cr vs ₹3,615 Cr
Q4 growth: ~8.7% YoY
This suggests domestic businesses remain resilient and Walls/Pipes are improving.
~ Operating cash flow improved sharply
OCF:
FY26: ₹118.6 Cr
FY25: ₹82.1 Cr
This indicates losses are not fully cash losses. Core operations are generating cash despite accounting pressures.
~ Working capital improved
Inventory reduction added ~₹48 Cr cash impact while receivables stayed controlled.
Operating cash before WC changes:
~ ₹46 Cr
After WC changes:
~ ₹123 Cr
Suggests:
~ better liquidity management
~ improving inventory turns
~ stable demand
Segment-wise:
~ Roofs remains the stable cash generator
Revenue ~₹1,139 Cr with ₹104 Cr segment profit.
~ Walls stayed healthy
Revenue grew ~13% with stable margins.
~ Pipes & Chemicals improved
Loss narrowed from -₹47.9 Cr to -₹32 Cr, while Q4 posted ~₹8 Cr profit.
Could mean utilisation and margins are improving.
~ Floors (Parador Europe) remains the biggest drag
Revenue rose to ₹1,286 Cr, but losses widened to -₹143 Cr.
Likely due to weak Europe housing demand and margin pressure.
Debt increased to ~₹852 Cr but remains manageable because:
~ OCF improved
~ WC stayed controlled
The ₹74.2 Cr provision related to BirlaNu International GmbH confirms stress in the Europe business, though it is largely non-cash.
What could improve the story?
~ narrowing Parador losses
~ sustainable Pipes profitability
~ stable OCF and debt
Overall, BirlaNu looks more like a business facing temporary international integration issues rather than a structurally broken company. Future rerating likely depends on Europe recovery and execution in Pipes & Chemicals.
Disc : invested and biased
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