BLS Polymers Limited is going live for an IPO. Their polymer compounds form the insulation and sheathing of a lot of telecom and power cables, and the coating on oil, gas and water pipelines.
IPO Summary
| IPO Details | |
|---|---|
| IPO Date | 27th to 29th Oct, 2026 |
| Issue Type | 100% Fresh Issue |
| Tentative Listing Date | 3rd Nov, 2026 |
| Price Band | ₹142 to ₹150 |
| Post Issue Mcap at ₹150 | ₹930 Cr |
| Total Issue Size | ₹255 Cr |
Introduction
Polymer compounds make up about 40% of the weight of a typical wire or cable. They form its insulation, sheathing and jacketing. The same kind of compounds also coat underground oil, gas and water pipelines to protect them from corrosion.
India’s polymer compounding market grew from $5,967 mn in 2019 to $9,934 mn in 2025, and is expected to grow ~9% a year from 2026 to 2031.
Much demand comes from power transmission, telecom networks, renewable energy, and pipeline programmes such as the National Gas Grid and the Jal Jeevan Mission. Power cables used 279,692 MT of polymer compounds in FY26.
BLS Polymers Limited (BLS Polymers) is a Delhi-based maker of polymer compounds for cables and pipe coatings. It is coming to market with an IPO consisting of a Fresh Issue of ₹255 Cr, from 27th to 29th Oct, 2026.
The Business Model
The company was incorporated in New Delhi in 1991. It is part of the BLS Group, whose listed firms include BLS International Services and BLS E-Services.
BLS Polymers buys plastic resins such as HDPE and LLDPE, mixes them with additives such as stabilisers, colourants and flame retardants, and turns the blend into pellets and sells them.
Later, cable makers and pipe coaters that buy these pallets use them on their own products.
BLS makes 127 grades (think formulations) across six product lines:
- PE compounds (43 grades): sheathing and jacketing for telecom, optical fibre, power and railway signalling cables.
- XLPE compounds (7 grades): insulation for power and control cables.
- HFFR compounds (12 grades): flame retardant compounds that give off little smoke, used in solar, fire survival and house wiring cables.
- PVC compounds (60 grades): used in low voltage power cables and house wiring. The company is phasing out PVC.
- Cable filling compound (1 grade): a water resistant filling for jelly filled telecom and power cables.
- Pipe coating compounds (4 grades): the HDPE and adhesive layers of the three-layer polyethylene (3LPE) coating used on oil, gas and water pipelines.
Wire and cable compounds gave 80.9% of FY26 revenue and pipeline compounds gave 19.1%.
BLS Polymers also resells HDPE and LLDPE resin without processing it, in order to take advantage of arbitrage opportunities.
To sell into power, telecom and pipeline projects, a compounder must get its products approved by government agencies or public sector buyers. BLS Polymers has products enlisted with a Maharatna CPSE power transmission company, a Navratna CPSE engineering consultancy company, a Miniratna CPSE telecom company and the Government of Gujarat.
All production happens at one plant in Verna, Goa, close to Mormugao port. It has 11 machines and an installed capacity of 35,251 MTPA. The company had 175 permanent employees and 97 contract workers on August 31, 2026.
From the issue proceeds, ₹77.56 Cr will fund an expansion that adds 52,050 MTPA of PE and XLPE capacity, taking the plant to 87,301 MTPA by FY28. Another ~₹90 Cr will go to working capital.
Unit Economics (₹ per MT of Raw Materials Purchased)
- Revenue per MT actually dropped from ₹106,940 in FY24 to ₹101,286 in FY26.
- Material cost per MT fell from ₹87,500 in FY24 to ₹79,139 in FY26.
- This meant that Adj. EBITDA per MT more than doubled despite revenue shortcomings, rising from ₹5,774 in FY24 to ₹12,145 in FY26.
Operating Metrics
- Resin trading grew from ₹41 Cr in FY24 to ₹111 Cr in FY26, while revenue from manufactured compounds fell 7%.
- Telecom is the largest end market, at 35% of FY26 revenue at ₹123 Cr, though down from 44% in FY24 at ₹130 Cr. Power fell from 22% to 14%, at ₹49 Cr in FY26. Oil and gas distribution, a new market, gave 2% in FY26 at ₹7 Cr, and this has actually risen to 6% in Q1FY27.
- Customers rose from 175 in FY24 to 190 in FY26. Repeat customers gave 96.5% of FY26 revenue. The top 10 customers’ share rose from 50.5% to 66.8% over the same period.
The Financial Stuff
- Revenue rose from ₹296 Cr in FY24 to ₹349 Cr in FY26, up 18%.
- Adj. EBITDA rose from ₹16 Cr to ₹42 Cr, and the Margin from 6% to 12%, and actually has reached 15% in Q1FY27.
- Finance Costs fell from ₹9 Cr to ₹8 Cr as total borrowings fell from ₹94 Cr in March 2024 to ₹52 Cr in March 2026.
- PAT rose from ₹8 Cr to ₹27 Cr in the same period, with PAT Margin going from 3% to 8%.
BLS Polymers’ Peers (FY26)
- BLS Polymers is the smallest of the four by revenue, with FY26 revenue of ₹349 Cr. DDev Plastiks is the largest at ₹2,948 Cr, about 8.4 times its size.
- At 8% PAT Margin, BLS Polymers is second only to Kingfa’s 9%. It is ahead of DDev Plastiks at 7% and Plastiblends at 5%.
- At 33% RoE, it is the highest of the four. The next best is DDev Plastiks at 22%. Note that BLS’s equity base will be much larger after listing.
- BLS’s D/E of 0.56x is the highest in the group. The three peers run at 0.01x to 0.06x, which makes them almost debt-free.
At an upper band of ₹150 and FY26 basic EPS of ₹5.99, BLS Polymers will trade at a P/E of 25.0x. Peers include 11.7x at DDev Plastiks, 40.8x at Kingfa, among others.
Key Risks
- Vendor discounts: Trade discounts from raw material vendors were ₹16 Cr in FY26, equal to 45% of PBT, after 59% in FY25 and 74% in FY24. These discounts are discretionary, are not backed by long-term contracts, and may be reduced or withdrawn.
- Supplier concentration: One supplier gave 72% of FY26 raw material purchases and the top 10 gave 94%. The company has no long-term agreements with most of its suppliers.
- Customer concentration: The top 10 customers gave 67% of FY26 sales and the top 5 gave 54%. The company has no firm commitment agreements with its customers.
- Flat volumes, rising trading: Production was 23,343 MT in FY24 and 23,265 MT in FY26. Revenue growth came from resin trading, which is just taking advantage of arbitrage opportunities.
- Expansion risk: The plant ran at 66% utilisation in FY26, and the company plans to raise capacity about 2.5 times, to 87,301 MTPA, by FY28. Orders for some of the equipment are yet to be placed, and all production sits in one plant in Goa.
- Raw material prices: Resin prices follow crude oil. After war broke out in the Middle East in February 2026, the company’s raw material cost per MT rose 33%, from ₹84,959 in FY26 to ₹113,065 in Q1 FY27.
IPO FAQs
Q: What is BLS Polymers’ price band?
A: BLS Polymers has a price band of ₹142 to ₹150.
Q: What is BLS Polymers’ lot size?
A: One lot of BLS Polymers shares is 100 shares, or ₹15,000 at the upper band.
Q: What is BLS Polymers’ closing date?
A: BLS Polymers IPO closes on 29th Oct, 2026.
Q: What is BLS Polymers’ listing date?
A: BLS Polymers is expected to list on 3rd Nov, 2026, on the NSE and the BSE.
Summary
BLS Polymers makes compounds for cables and pipe coatings. Its Adj. EBITDA margin rose from 6% in FY24 to 12% in FY26 though production stayed near flat as material cost per MT fell. But vendor discounts equalled 45% of FY26 PBT, and one supplier gave 72% of purchases.
