BLS Polymers, a part of the BLS Group, is a manufacturer of multiple grades of custom formulated polymer compounds, which is used as an essential raw material for sheathing, jacketing and insulation of wires and cables used in power, telecommunication and railway industries as well as coating of underground oil, gas and water pipelines, in order to provide a protective infrastructure from corrosion and external environmental factors.

Product portfolio of the company is well diversified to offer varied solutions in the wire and cables and infrastructure industry, and included products such as, high density polyethylene compounds (“HDPE”), medium-density polyethylene compounds (“MDPE”) and linear low-density polyethylene compounds (“LLDPE”), cross-linked polyethylene compounds (“XLPE”), halogen free flame retardant compounds (“HFFR”), polyvinyl chloride compounds (“PVC”), cable filling compounds (“CFC”) and adhesive coating compounds. The company in the year 2022, with a view to capitalize the opportunity to offer specialised products, diversified its business operations by developing polyethylene pipe coating and adhesives for 3LPE applications in the pipe coating industry.

Of the FY26 operational revenue about 80.93% is from wires and cables (W&C) and balance 19.07% is from industrial pipelines. Of the FY26, operational revenue about 52.71% is from PE (HDPE/MDPE/LLDPE/CFC/HFFR/MB/PP), 14% is from XLPE, 1.47% is from PVC and 31.83% is from others.

In addition to its product portfolio, on a case-to-case basis, it also develops products that are customised to cater to a specific requirement of its customers. During Q1FY27 and FY26, the revenue earned from HDPE and adhesive coating compounds and halogen free flame retardant compounds constituted an aggregate of 26.80%% and 19.07% respectively.

The company as on Aug 31, 2026, manufactures six products in 127 grades across its product segments. The company caters to diversified critical industries such as telecommunication, power, railways, water, oil and gas distribution, among others. Of the FY26, 35.1% is from telecommunication, 14% is from power, 16.93% from water distribution, 2.14% from O&G and balance 31.83% is from others.

HDPE, MDPE and LLDPE compounds are used in the wire and cable industry which offer insulation, sheathing and jacketing based on the indicative requirement of the customer. compounds add qualities such as strength, high voltage insulation and resistance, fire resistance and moisture resistance, as per the application of the end use product. In the wire and cable industry, polymers serve crucial functions in electrical insulation, mechanical protection, and overall cable performance. HDPE and adhesive coating compounds are key layers of 3LPE (three layer polyethylene) system (“3LPE Coating” i.e. Pipe Coating) used for coating of oil, gas and water distribution pipelines. 3LPE Coating is an effective solution for protecting high-capital-intensive pipelines from corrosion, chemicals and moisture, thereby ensuring long-term durability.

It served more than 190 customers across power cables, telecommunication and infrastructure industries, out of which 100 have been associated with it for a period of more than three years. It gets about 99% of its revenue from direct sales. Moreover, north zone accounted for 49.45% of FY26 operational revenue with west zone account for 34.38%, south zone 15.67% and east zone was 0.51%.

It has established a strong international market presence with exports contributing about 5.46% of revenue from operations in FY26 with balance 94.54% from domestic market. It exports to countries such as, Saudi Arabia (65.38% of FY26 revenue), Bangladesh (14.35%), Egypt (15.37%), United Arab Emirates (2.87%), Zambia (1.78%), Oman, Turkey and United States of America.

The company have enlisted its products with a Maharatna CPSE power transmission company, a Navratna CPSE engineering consultancy company, a Miniratna CPSE telecommunication company and Government of Gujarat.

The issue, objects of the issue

The issue comprises only fresh issue of 17000000 equity shares of Rs 10 each.

Of the net proceeds the company intends to spend about Rs 77.5607 crore towards financing the capital expenditure requirement towards expansion of its existing manufacturing facility at Goa; Rs 89.50 crore towards funding working capital requirement and balance towards general corporate purposes.

The company proposes to expand the manufacturing capacity of PE and XLPE compounds by 52,050 MTPA [PE 29192 MTPA; XLPE 22858 MTPA] to 87301 MTPA [PE 53703 MTPA; XLPE 28641 MTPA; PVC 4957 MTPA].

Strengths

Enlisted with prominent government agencies with pre-approved product portfolio.

Diversified industry applications with differentiated product portfolio.

Long-standing relationships with its customers. As of June 30, 2026, derive 90.84% of its revenue from operations from repeat orders of its customers.

Weaknesses

Company is dependent on the demand from industries where its products find application. Reduction in demand for cables & wires would have a material adverse effect on the business.

Operate in a competitive organised and unorganised industry with low barriers to entry and may be unable to compete with a range of unorganized players.

Top 5 and 10 customers contributed about 53.45% and 66.81% of FY26 revenue from operations.

Have experienced negative cash flows in relation to operating activities in the three months period ended June, 2026.

Vinsul Makardi, a group company, may have conflicts of interest as it is engaged in similar business and may compete with the company.

Operate out of a single manufacturing facility which is located at Goa and is subject to operating risks.

Limited operational history in manufacturing adhesives for 3LPE applications.

Restrictions on import of raw materials may impact on business and results of operations.

It procures a small portion of its raw materials from Vinsul Makardi, one of Group companies and promoter group entities and also sells some of its products to them.

SEBI in the past has issued summons against BLS International Services, one of the members of promoter group.

Valuation

Consolidated re-stated revenue in fiscal ended Mar 2026 stood higher by 6% to Rs 349.43 crore. With OPM expand by 230 bps to 12%, the growth of OP was 32% to Rs 41.90 crore. Finally, net profit was lower by 28% to Rs 27.01 crore.

For the three months ended Jun 2026, the sales were Rs 107.03 crore and at operating level it was a profit of Rs 15.47 crore with OPM stand at 14.5%. Finally, the net profit was Rs 10.23 crore.

On the post issue equity, the EPS for fiscal ended Mar 2026 was Rs 4.4. On the upper price band, the PE works out to 34.1 times of its FY26 EPS. P/BV stood at 2.6 times and EV/Sales stood 2.8 times. Based on net profit for FY26, the ROE stands at 4.5%.

In comparison, DDev Plastiks, the largest polymer compound manufacturer in the country with an installed capacity of 233,400 MTPA quotes at a PE of 12.9 times of its FY26 EPS, the P/BV was 2.6 times and the ROE was 19.9% and OPM was 9.7%. The Kingfa Science quotes at a PE of 46.9 times of its FY26 EPS and P/BV of 6.2 times. ROE of Kingfa Science was ROE was 13.2% and its OPM was 13.1%.