Beekay Steel's revenue surged 58% year-on-year to ₹419 crore in Q2 FY27, but net profit fell 66% sequentially to ₹13 crore. The drop was driven by a mark-to-market loss on investments and higher operating costs.
For Beekay Steel, the September quarter was a story of two businesses. The core steel operations rode a wave of strong domestic demand, but a volatile treasury book and rising costs left the bottom line far behind.
Revenue jumped 57.7% year-on-year to ₹419 crore, marking a fifth consecutive quarter of sequential growth. Yet net profit fell 65.9% from the June quarter to ₹13 crore, squeezing the net profit margin to 3.1% from 10.2%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
Metric
CurrentQ2 FY27
PreviousQ1 FY27
Same quarter LYQ2 FY26
Revenue (₹ Cr)
419.0YoY +58%
374.7
265.7
Profit (₹ Cr)
13.0YoY +12%
38.1
11.6
Net Profit Margin (%)
3.1YoY -30%
10.2
4.4
The Treasury Drag That Masked Growth
The headline profit collapse was largely a one-off. According to reports from scanx.trade and blog.perivis.com, the company booked an unrealised mark-to-market loss of ₹8.52 crore on equity investments. This reversed a ₹18.25 crore gain from the prior quarter, creating a massive ₹26.77 crore swing in other income.
Excluding this treasury volatility, the underlying business showed strength. Operating EBITDA, which strips out these investment swings, grew 3.2% sequentially to ₹44.06 crore, as noted by Tulsian AI.
Costs Rise With the Tide
Even the core operations faced pressure. Total expenses rose 51.8% year-on-year, nearly keeping pace with the revenue surge. Data from cruxal.in shows material costs jumped 38%, while employee and power expenses grew over 50%.
This reflects the broader industry dynamic where input costs are rising alongside steel prices. The company is funding a major capacity expansion, which also contributed to a 34.9% year-on-year rise in interest costs.
A Strong Backdrop for Steel
The cost pressure is partly a function of a hot market. Government data cited in research shows national finished steel consumption grew 7.5% for the April-October period. TMT bar prices in October were 26% higher than a year ago.
This robust demand environment is why management, as per an earnings call note on MarketsMOJO, is targeting FY27 revenue of ₹1,315 crore. The first-half run-rate of ₹794 crore puts the company well on track.
Key Points
Revenue growth remained robust at 57.7% YoY, driven by strong domestic steel demand.
Reported net profit fell 65.9% QoQ primarily due to a ₹8.52 crore unrealised loss on equity investments.
Core operating profitability (EBITDA) grew sequentially, but rising raw material and interest costs pressured margins.
The company is progressing on a significant capacity expansion, funded partly by increased debt.
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Hexa Perspective
The quarter presents a clear split between a volatile financial engine and a strengthening industrial core. The treasury losses are non-cash and may reverse, but they highlight a balance-sheet strategy that adds noise to earnings.
The real test is whether operating leverage from the revenue surge can outrun the inflation in material and financing costs. With half-year operating EBITDA already more than double last year's, the core business momentum is undeniable. However, the 17.1 P/E, trading at a discount to the industry, suggests the market is weighing this growth against the margin squeeze and balance-sheet complexity.
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Frequently asked questions
What were Beekay Steel's Q2 FY27 results?
For Q2 FY27 (quarter ended September 2026), Beekay Steel reported consolidated revenue of ₹419 crore, up 57.7% year-on-year. Net profit was ₹13 crore, a 66% sequential drop but an 11.8% increase compared to the same quarter last year.
Why did Beekay Steel's Q2 FY27 net profit fall 65.9% sequentially despite an 11.8% rise in revenue?
Beekay Steel's Q2 profit fell sharply due to a swing in other income. As reported by scanx.trade, the company booked an ₹8.52 crore unrealised loss on equity investments, compared to an ₹18.25 crore gain in Q1. This ₹26.77 crore swing turned other income negative, masking underlying operational growth.
What caused the 710 basis point sequential contraction in Beekay Steel's net profit margin in Q2 FY27?
The margin contraction was primarily due to the ₹8.52 crore mark-to-market loss on investments, which directly hit the bottom line. Furthermore, total expenses rose 12.4% sequentially, with costs for materials, employees, and power all increasing, as detailed in a report by cruxal.in.
Was the sharp decline in Beekay Steel's Q2 FY27 other income a one-off item?
Yes, the decline was a non-cash, one-off item. According to scanx.trade, it was an unrealised mark-to-market loss of ₹8.52 crore on the company's equity investments. Such treasury gains or losses can create significant quarterly volatility but may reverse with market movements.
Did higher raw material costs pressure Beekay Steel's profitability in Q2 FY27?
Yes. Data from cruxal.in shows the cost of materials consumed rose 38% year-on-year to ₹252.53 crore. Employee and power costs also rose over 50%. These increases kept pace with revenue growth, limiting margin expansion from the core steel business.
What is the status of Beekay Steel's debt given the 34.9% YoY rise in interest cost?
Beekay Steel's borrowings have increased to fund working capital and expansion. An analysis on mcapital.in estimates net debt rose to approximately ₹372.5 crore in September 2026 from ₹329.7 crore in March 2026. The company maintains an 'A' credit rating from India Ratings, indicating adequate safety.
What guidance did Beekay Steel management provide for FY27?
Based on an earnings call note cited by MarketsMOJO, management is targeting FY27 revenue of ₹1,315 crore. With H1 FY27 revenue already at ₹794.1 crore, the company is on a strong run-rate to meet or exceed this goal, driven by robust steel demand.
What are Beekay Steel's ongoing capacity expansion plans?
Beekay Steel is executing a major expansion at its Cuttack plant, acquired in 2022. According to stockscans.in, a ₹720 crore project aims to roughly double capacities by October 2027. This is funded through a mix of internal cash, term loans, and has led to an increase in net debt.
How did Beekay Steel's stock price react to the Q2 FY27 results?
The stock closed at ₹403.00 on November 13, 2026, the day the results were announced, down 1.59%. An AI analysis on mcapital.in categorized the filing as 'very positive' for shareholders, noting the strong core operational growth masked by treasury-led profit volatility.
Beekay Steel Industries reported consolidated revenue of ₹419.40 crore and a profit after tax (PAT) of ₹12.07 crore for Q2 FY27 (quarter ended September 2026). This represents a 57.9% year-on-year revenue growth and a 6.0% increase in PAT, as per the filing detailed by cruxal.in.
Beekay Steel Industries Q2 FY27 results order book
The article does not contain specific order book figures for Beekay Steel's Q2 FY27. The reported revenue growth of 58% year-on-year to ₹419 crore was driven by strong underlying demand in the domestic steel market, particularly for construction-related products like TMT bars.
