BLS Polymers Opens Rs 255 Crore IPO at About 34x FY26 Earnings as Trading Income Climbs to a Third of Sales

BLS Polymers, a New Delhi company that makes the plastic compounds used to insulate and sheath electrical cables and coat underground pipelines, opened its initial public offering on Tuesday. The Rs 255 crore issue is priced at Rs 142 to Rs 150 a share and closes on Thursday, October 29. Demand came in quickly. By around midday the book had been covered 3.9 times, with qualified institutional buyers bidding for 7.52 times their quota, non-institutional investors 2.88 times and retail investors 2.27 times.

What is on offer

The whole issue is fresh equity, about 1.70 crore new shares, so all of the money goes to the company and none to selling shareholders. That stands in contrast to SFC Environmental, which also opened on Tuesday with a large offer-for-sale component. BLS plans to spend the proceeds on expanding its manufacturing plant, on working capital and on general corporate purposes.

Retail investors can apply for a minimum of 100 shares, or Rs 15,000 at the upper end. Half the net offer is reserved for institutions, 35% for retail and 15% for non-institutional investors. The company raised Rs 76.50 crore from seven anchor investors at Rs 150 a share before opening, and the shares are scheduled to list on November 3.

The valuation question

At the top of the band, BLS will be worth a little over Rs 930 crore after the issue. It earned a net profit of Rs 27.01 crore on revenue of Rs 354.41 crore in FY26, which puts the post-issue price at roughly 34 to 35 times last year's earnings. The picture looks better on recent numbers. Profit for the June 2026 quarter alone was Rs 10.23 crore on revenue of Rs 107.81 crore. If the company keeps up that pace for a full year, the multiple falls into the mid-20s.

Swastika Investmart described the price as fair to slightly aggressive against listed compound makers such as Plastiblends and Ddev Plastiks, but argued that BLS's return on equity of more than 30% supports a premium.

Strong margins, slow sales

The most striking number in the filings is the gap between profit growth and sales growth. Between FY24 and FY26, revenue grew at about 8.6% a year while net profit grew at almost 90% a year, according to SBI Securities. Net margin reached about 7.6% in FY26 and close to 9.5% in the June quarter.

The mix behind that revenue deserves a careful look. Trading, which means reselling material the company does not make itself, rose to 32% of FY26 revenue from 14% two years earlier. Over the same period, sales of goods BLS actually manufactures fell from about Rs 255 crore to Rs 238 crore. The expansion funded by this IPO is meant to reverse that. Capacity is set to rise from about 35,251 tonnes a year to 87,301 tonnes. Since the existing plant is not fully used, the real test is whether BLS can find enough orders to fill a much larger one.

Risks to weigh

Wires and cables accounted for about 81% of FY26 revenue and industrial pipelines the remaining 19%, so the company depends heavily on spending in power transmission, telecom and railways. Repeat customers made up about 96.5% of revenue, which suggests sticky relationships, but brokerages also point out that customer concentration has risen sharply. BLS relies on a small group of suppliers for polymer feedstock whose prices follow crude oil, and it runs a single manufacturing site, so one disruption could hit its entire output.

For investors, BLS offers a profitable, niche business riding India's grid and infrastructure build-out, at a price that already assumes the margin gains will last. Strong early demand from institutions shows that the market likes the theme. The listing on November 3 will show how much of the valuation it is willing to accept.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.