Bombay Coated and Special Steels

Steel processor

Bombay Coated and Special Steels, incorporated in 2019, is a steel processing centre converting steel coils into value-added processed steel products. The company operates as an intermediary between primary steel producers and end-users by providing value-added processing services. Its core competencies include precision slitting, cut-to-length processing, shearing, and embossing of steel coils into slit coils, embossed slit coils, blanks, embossed blanks and sheared blanks (collectively referred to as Processed Steel Products).

The company caters to a diversified customer base comprising original equipment manufacturers (OEMs) and original design manufacturers (ODMs). It has more than 250 customers. These customers span multiple industries, including consumer durables and home appliances, electrical equipment and components, automotive and auto components, HVAC and refrigeration, electronics and electrical manufacturing services, industrial engineering and capital goods, steel processing and metal fabrication, infrastructure, renewable energy and power equipment, FMCG and packaging, as well as general manufacturing and industrial trading enterprises.

Since 2021, the company has been an authorised service partner of JSW Steel Coated Products Limited and/or its holding company (JSWSCPL), pursuant to an agreement for the regular supply of steel coils. The company procures steel coils from JSWSCPL as well as other suppliers, and processes them using advanced engineering techniques and high-precision machinery to manufacture processed steel products.

The company processes coated steel coils and hot-rolled steel coils into processed steel products used in the manufacture of various appliances. It undertakes specialized processing of non-coated and galvanised plain coils into blanks, used in automotive manufacturing, pharmaceutical cleanroom infrastructure, electrical equipment, and ventilation systems.

In FY26, the home & commercial appliances industry accounted for 86.54% [46.85% from air conditioners, 22.32% from commercial refrigeration, 15.69% from home refrigeration, 0.50% from water heater and 1.19% from others] and general engineering accounted for the balance 13.46% [automotive 4.09%, electrical equipment 4.01%, consumer durables 2.46%, air ventilation 1.18%, furniture & fittings 0.33%, and others 1.40%] of the share of operational revenue.

In addition to manufacturing processed steel products, the company also performs logistics and inventory management functions. By maintaining adequate inventory levels and offering just-in-time delivery solutions, it ensures timely and efficient supply of processed steel products to customers across urban as well as remote locations, thereby enhancing supply chain efficiency and cost optimization.

The company is a multi-location steel processing centre with manufacturing facilities across four locations at Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan, and Sri City in Andhra Pradesh, aggregating a total area of 42209 square meters. Its facilities are equipped with steel processing infrastructure, including slitting lines, cut-to-length lines, shearing lines, and embossing lines, designed to achieve operational precision and efficiency.

The company?s aggregate installed processing capacity was 1,23,153 tpa, computed on a quarterly basis for FY27, across slitting, cut-to-length, shearing and embossing operations, as of June 30, 2026. It proposes expanding the existing Ghiloth facility by installing one additional cut-to-length line. It has already acquired additional land.

The manufacturing facilities are in proximity to customer delivery points. Certain facilities are located near the manufacturing locations of customers such as Western Refrigeration, Amber Enterprises India, PG Technoplast, EPack Durable, and Kruger Ventilation Industries (India), among others.

This proximity enables reduction in logistics time and transportation costs, facilitates operational efficiencies, and supports timely fulfilment of customer requirements. In addition, the clustering of certain facilities within the same state allows for inter-facility movement of materials, thereby reducing freight time and costs as components undergo sequential processing.

On January 29, 2021, the company entered a Business Transfer Agreement to acquire the running business of Bombay Steels on a going-concern basis. The acquisition consolidated over four decades of trading and processing experience. Thereafter, the company entered a phase of rapid expansion and added steel processing facilities across key manufacturing regions of India. It expanded its operations by establishing new manufacturing facilities in western, northern and southern regions.

The company derive its revenue from operations from customers located across 14 states and 2 union territories in India. In FY26, about 28.83% of the revenue came from Maharashtra, followed by 17.53% from Gujarat, 12.12% from Haryana 10.02% from UP, 9.03% from Uttarakhand, 6% from Rajasthan, 6.07% from Punjab, 6.14% from Tamilnadu.

The Wada (Western India) and Giloth facilities (North India) accounted for 42.39% and 42.85% of revenue in FY26. The Sri City facility (South) accounted for 8.69%, with 0.47% by Punjab (North).

The Issue, objects of the issue

The IPO comprises only fresh issue of equity shares of Rs 10 face value, aggregating Rs 183 crore.

Of the net proceeds from the fresh issue, an amount of Rs 125 crore will be utilized for repayment/pre-payment, in full or in part, of certain borrowings, Rs 15.7 crore for financing the cost towards acquisition of capital equipment under existing lease arrangements with Siemens Financial Services, and for general corporate purposes.

Strengths

Established relationship with JSWSCPL Steel for supply of steel coils.

Steel processing facilities are strategically located across key industrial regions in India.

Integrated and advanced steel processing infrastructure

Long-standing relationships with customers, including OEMs and ODMs.

High entry barriers driven by authorised supplier arrangements, capital intensity and customer approvals

Weakness

Steel coils is the principal raw material, and the cost of its processed steel products depend on its ability to procure such raw materials at commercially acceptable prices and in sufficient quantities.

Substantially dependent on a single supplier, JSW Steel Coated Products and/or its holding company for the supply of steel coils, which constitute a key raw material. In FY26, the company sourced 86.65% of its total steel coil requirements from JSWSCPL.

The Top 10 customers accounted for 71.33% of operational revenue in FY26 and 67.44% in FY25. Largest customer (Amber Enterprises India) accounted 20.40% of revenue in FY26.

Demand for processed steel products is dependent on the demand for end products manufactured by OEM and ODM customers and is subject to seasonality and cyclicality. The home & commercial appliances sector generally witnesses higher demand during the Indian summer and festive seasons.

Customers located in Maharashtra, Gujarat and Haryana accounted for more than 50% of revenue in FY26 and Q1FY27.

Logo not registered as on October 21, 2026.

Valuation

Consolidated re-stated revenue in FY26 stood higher by 20% to Rs 1266.82 crore. With OPM contracting by 20 bps to 6.8%, the growth of OP was 16% to Rs 86.09 crore. Other income was up by 2% to Rs 3.01 crore. Interest jumped 14% to Rs 35.71 crore and the depreciation rose 46% to Rs 12.60 crore. Thus, PBT was up 10% to Rs 40.79 crore. Finally, net profit after MI was higher by 7% to Rs 30.54 crore with tax incidence standing higher.

On the expanded equity, the EPS for FY26 was Rs 4.9. On the upper price band, the PE works out to 16.7 times of its FY26 EPS. Annualized EPS for Q1FY27 was Rs 9.6 and PE works out to 8.5 times. P/BV stood at 1.6 times and EV/Sales stood 0.6 times. ROE stands at 6.4%.

Repayment of Rs 125 crore from net proceeds will bring the borrowings down by about 41.33%, resulting in lower interest outgo. EPS for FY26 works out to Rs 7.2 if 41.33% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked PE stood at 11.4 times.

In comparison, BMW Industries quotes at a PE of 13.9 times, ROE of 9.6% and FY26 OPM of 24.8%. The PE of Manaksia Coated Metals was 40.3 times, ROE of 9.2% and OPM of 9.1%. The PE of Shiv Aum Steel was 139.5 times, ROE of 4.3% and OPM of 2.7%.

Bombay Coated and Special Steels : Re-stated Consolidated Financials
	2403 (12)	2503 (12)	2603 (12)	2606 (3)
Sales	755.26	1055.71	1266.82	397.08
OPM (%)	6.5	7.0	6.8	8.1
OP	49.17	74.09	86.09	32.17
Other income	10.15	2.94	3.01	0.47
PBIDT	59.32	77.03	89.10	32.64
Interest	25.96	31.24	35.71	8.63
PBDT	33.36	45.79	53.39	24.02
Depreciation	5.15	8.63	12.60	3.37
PBT	28.21	37.17	40.79	20.65
EO Exp	0.00	0.00	0.00	0.00
PBT after EO	28.21	37.17	40.79	20.65
Tax	7.07	8.49	10.25	5.57
PAT	21.14	28.67	30.54	15.08
Share of Profit from Associates	0.00	0.00	0.00	0.00
Minority Interest	0.00	0.00	0.00	0.00
Net profit after MI	21.14	28.67	30.54	15.08
EPS (Rs)*	3.4	4.6	4.9	9.6
* on post IPO fully dilluted equity (on upper price band) of Rs 62.82 crore. Face Value: Rs 10
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate database

Bombay Coated and Special Steels : Issue Highlights
Fresh Issue (Rs crore)	183
Offer for sale (in nos.)	0
Price band (Rs.) **
Upper	82
Lower	78
Post-issue equity (Rs crore)
in Upper price band	62.82
in Lower Price Band	63.97
Post-issue promoter (including promoter group) stake (%)	63.03
Minimum Bid (in nos.)	182
Issue Open Date	29-10-2026
Issue Close Date	02-11-2026
Listing	BSE, NSE
Rating	42 /100

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