Bombay Coated and Special Steels Limited is going live for an IPO. They cut steel coils into strips and sheets for air conditioner, refrigerator and other appliance makers at four plants in Maharashtra, Rajasthan and Andhra Pradesh.
IPO Summary
| Bombay Coated and Special Steels IPO Details | |
|---|---|
| IPO Date | 29th Oct to 2nd Nov, 2026 |
| Issue Type | 100% Fresh Issue |
| Tentative Listing Date | 5th Nov, 2026 |
| Price Band | ₹78 to ₹82 |
| Post Issue Mcap at ₹82 | ₹515 Cr |
| Total Issue Size | ₹183 Cr |
Introduction
Steel mills sell flat steel in large coils. A factory that makes air conditioners or refrigerators needs that steel cut to exact widths and lengths, sometimes with a pattern pressed into it, and it needs the steel on the day its line runs.
Steel processing centres (SPCs) do this cutting, hold the stock and deliver it. India’s SPC market was worth about $8.2 billion in CY25. It grew 8.6% a year from CY20 to CY25 and is projected to grow at the same rate to $12.4 billion by CY30.
Demand comes from appliances, cars, construction and general manufacturing.
Appliance and car makers prefer just-in-time supply. This moves the work of holding steel stock and cutting it to size from the factory to the SPC.
Bombay Coated and Special Steels Limited (BCSSL) is a Mumbai-based SPC that makes steel that goes into these end-uses. They’re coming to market with an IPO consisting of a Fresh Issue of ₹183 Cr, from 29th Oct to 2nd Nov, 2026.
The Business Model
BCSSL started processing steel at Bhiwandi in 2012. The company was set up in 2019 and took over the Bombay Steels business in January 2021.
The company buys steel coils, cuts and shapes them to each customer’s order, and sells the finished pieces. It does four things to a coil:
- Slitting: cuts a wide coil into narrower coils.
- Cut-to-length: cuts a coil into flat sheets, called blanks.
- Embossing: presses a raised pattern into colour-coated steel, used for parts such as refrigerator panels.
- Shearing: makes straight cuts on blanks.
The company owns the steel it sells, so its revenue includes the full price of the steel and not just a processing fee. Material costs take up a lot of revenue, and margins are thus thin.
It has been an authorised service partner of JSW Steel Coated Products since 2021. In fact JSW supplied ~87% of its steel coils by value in FY26. Under the agreement, BCSSL cannot buy certain coated coils from other suppliers.
It prices both its coil purchases and its product sales every quarter. It holds about one to two months of raw material stock.
It has four plants: Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan and Sri City in Andhra Pradesh, with a total area of 42,209 sq m. The plants sit near customers’ factories, which cuts delivery time and freight cost.
Its customers are appliance makers that sell under their own brand (OEMs) and contract makers that build for other brands (ODMs). Customers include Haier, IFB Refrigeration, Dixon, Amber Enterprises, Western Refrigeration, PG Technoplast and EPack Durable.
Unit Economics (₹ Lakh per Customer)
- Revenue per customer rose from ₹3.4 Cr in FY24 to ₹4.9 Cr in FY26, up 45%. The number of customers rose only 16%, from 225 to 261, so most of the growth came from existing customers buying more.
- Material cost took ~88% of revenue from FY24 to FY26.
- Adj. EBITDA per customer rose from ₹22 lakh to ₹33 lakh, though the margins only showed slight improvement.
Operating Metrics
- Capacity and output: Installed capacity rose 53%, from 301,541 MT in FY24 to 462,411 MT in FY26. Slitting was done a utilization of 61%, the highest of all segments, and Embossing had the lowest utilization at 47%.
- End-use mix: Air conditioners rose from 27% of revenue in FY24 to 47% in FY26. This is the highest grossing segment for Bombay Coated.
- Plant mix: Ghiloth’s share of revenue rose from 31% in FY24 to 43% in FY26, and Sri City sits at 9% in FY26 from just ~1% in FY24.
The Financial Stuff
- Revenue went from ₹755 Cr in FY24 to ₹1,056 Cr in FY25 and ₹1,267 Cr in FY26. That is ₹301 Cr added in FY25 and ₹211 Cr in FY26.
- Adj. EBITDA went from ₹49 Cr to ₹74 Cr and ₹86 Cr. PAT went from ₹21 Cr to ₹29 Cr and ₹31 Cr. In FY26, revenue rose by ₹211 Cr, but PAT rose by only about ₹2 Cr.
- Depreciation was ₹5 Cr, ₹9 Cr and ₹13 Cr. Finance costs were ₹26 Cr, ₹31 Cr and ₹36 Cr.
- Other income was ₹10 Cr in FY24 and ₹3 Cr in each of FY25 and FY26.
BCSSL’s Peers (FY26)
- BCSSL has the largest revenue of the four at ₹1,267 Cr, 43% more than Manaksia’s ₹884 Cr.
- Its EBITDA margin of 7% is above Shiv Aum’s 3% and below Manaksia’s 9% and BMW’s 25%.
- Its PAT margin of 2% is second lowest.
- RoNW of 25% is the highest of the four.
- Debt to equity of 2.78x is also the highest of the four, making BCSSL the most leveraged among its peers.
At the upper band of ₹82 and FY26 basic EPS of ₹7.64, BCSSL will trade at a P/E of 10.7x. Peers include 13x at BMW Industries, 33x at Manaksia and 77.7x at Shiv Aum.
Key Risks
- Single supplier: JSW supplied 87% of steel coils in FY26 and 91% in FY25. The agreement bars BCSSL from buying certain coated coils from other suppliers and sets minimum purchase quantities. JSW can end it with three months’ notice without giving a reason, and it can appoint other service partners in the same regions.
- One end market and seasonality: Home and commercial appliances gave 87% of FY26 revenue, and air conditioners alone gave 47%. Orders for air conditioners and refrigerators are lower from June to September. A weak summer or a slowdown in appliance demand would hit volumes directly.
- Thin margins and steel prices: Material cost was 88% of FY26 revenue and PAT margin was just 2%. The company sets prices quarterly. Steel mills pass grade-wise price changes to OEMs through retrospective adjustments, which may not line up with BCSSL’s own pricing cycle. A small change in the spread between coil cost and selling price can remove a large part of profit.
- Debt: Debt to equity was 2.78x in FY26 and 2.00 in Q1 FY27, the highest among listed peers. Borrowings stood at ₹302 Cr on August 31, 2026, and the promoters have personally guaranteed all of them.
IPO FAQs
Q: What is BCSSL’s price band?
A: BCSSL has a price band of ₹78 to ₹82.
Q: What is BCSSL’s closing date?
A: BCSSL IPO closes on 2nd Nov, 2026.
Q: What is BCSSL’s listing date?
A: BCSSL lists on 5th Nov, 2026, on the NSE and the BSE.
Q: How will BCSSL use the IPO money?
A: ₹125 Cr will go to repaying borrowings, ₹16 Cr to buying equipment at Ghiloth plant, rest for general corporate purposes.
Summary
BCSSL is a steel processor that grew revenue at a 30% CAGR from FY24 to FY26 and earned an Adj. EBITDA margin of 7% in FY26. But JSW supplied 87% of its steel, top 10 customers gave 71% of revenue and air conditioners gave 47%.
