1. At a Glance
If “ghar ka chhat” could talk, it would probably cry looking at BirlaNu’s Q2 FY26 results. Once the pride of the C.K. Birla empire, HIL Limited (now BirlaNu Ltd) seems to be auditioning for a tragicomedy in the construction materials industry.
The company clocked₹810 crore in Q2 FY26sales (up4.61% QoQ) but posted aloss of ₹42.9 crore, itsthird straight quarter of red ink. TheOperating Profit Margin (OPM)is at a ghostly1.44%, and theROEhas crashed to-7.25%. With an enterprise value of₹2,395 crore, anddebt of ₹1,041 crore, the balance sheet is heavier than a cement truck.
Market cap?₹1,399 crore.Current price?₹1,856.Book value?₹1,563, meaning the stock is trading at1.19x P/B— decent, if you enjoy rollercoasters.
Add in anegative profit growth of 109%,low interest coverage (-0.74x), and adividend yield of 1.62%, and you’ve got a “Navratna” with cracked tiles.
Recent news? Acquisition ofClean Coatsfor up to ₹120 crore, and a ₹127 crore greenfield fibre cement plant near Krishnapatnam. Because when your net profit is negative, the best therapy is apparently more capex.
Welcome toBirlaNu Ltd – where the roof might leak, but ambition doesn’t.
2. Introduction
Ah, BirlaNu Ltd — formerly HIL Limited — a proud member of theC.K. Birla Group, headquartered in Hyderabad. Once known for its legendaryCharminar roofing sheets, the company today is a sprawling construction-materials buffet: AAC blocks, polymer pipes, decorative boards, and European laminate floors.
But FY26 has been more “sauda khatta” than “sauda pakka.”
Sales are stuck around₹3,597 crore (TTM)— almost flat from last year — while profits have sunk from₹35 crore (FY24)to aloss of ₹104 crore (FY25). From a respectable13% OPM in FY21to just1% now, this fall is like watching your contractor replace cement with atta.
BirlaNu is juggling four main businesses:Roofing (Charminar), Building Materials (Aerocon), Polymer Solutions (Birla HIL), and Flooring (Parador). Each division has its own drama, its own heroics, and its own villain — usually inflation, energy costs, or European demand.
Despite the pain, management is not sitting idle — in true Birla style, they’ve gone shopping: first acquiringCrestia Polytechand its subsidiaries for ₹265 crore, and nowClean Coatsfor ₹120 crore. If M&A were a coping mechanism, BirlaNu deserves therapy.
But hey, when your past includes asbestos and your future includes vinyl flooring, you’ve clearly learned how to pivot.
3. Business Model – WTF Do They Even Do?
Let’s decode this building-materials thali:
1. Roofing Solutions (32.5% of FY24 revenue)The flagship “Charminar” brand rules here. Think of it as the Ambuja of the asbestos world. The range includesFibre Cement Sheets, Charminar Fortune (eco-friendly), andCharminar+(colored sheets). Capacity?1.1 million MTannually. Basically, if you put all their sheets end-to-end, you could cover half of Telangana.
2. Building Solutions (15.5%)This one’s brandedBirla Aerocon— the poster child for modern construction materials. AAC blocks, wall panels, and smart boards make up the bulk. The segment’s capacity stands at1.1 million cubic meters (blocks)and2.3 lakh MT (boards & panels). But volumes have been sluggish — government projects slowed, and so did Aerocon.
3. Polymer Solutions (15.2%)Under theBirla HILbanner, they sell pipes, fittings, wall care putty, adhesives, distempers — basically anything you can slap on a wall or shove under a sink. Capacity?100,000+ MTPA for pipes,250,000+ MTPA for putty.
4. Flooring Solutions (32.4%)TheParadordivision is their global arm based in Germany. They make laminate, engineered wood, and vinyl flooring. Despite inflation hitting Europe harder than a cricket ball in Sharjah, Parador managed volume growth. Respect.
5. Construction ChemicalsWaterproofing, tile adhesives, dry mix — basically, “Make anything sticky, sell it Birla-style.”
So what’s the business model?A perfectly diversified cocktail of concrete, wood, and chemical fumes.
But with Europe struggling, Indian construction cyclicals wobbling, and debt mounting — BirlaNu’s diversification feels
less like synergy and more like a panic room.
4. Financials Overview
| Metric | Latest Qtr (Sep ’25) | YoY Qtr (Sep ’24) | Prev Qtr (Jun ’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹810 Cr | ₹774 Cr | ₹1,052 Cr | +4.61% | -23.0% |
| EBITDA | ₹-10 Cr | ₹15 Cr | ₹40 Cr | NA | NA |
| PAT | ₹-42.9 Cr | ₹-35 Cr | ₹-1 Cr | -22.6% | NA |
| EPS (₹) | -56.84 | -47.05 | -1.75 | -21% | NA |
Annualized EPS = ₹ -227.36(P/E not meaningful).
The trend?Sales up slightly, but profits fell harder than cement bags in a storm. Even “Other Income” of ₹14 crore couldn’t patch the hole.
BirlaNu’s P&L reads like a bad contractor bill — too many “extras,” not enough completion.
5. Valuation Discussion – Fair Value Range
Let’s attempt a purely educational range (don’t sue us, SEBI).
Method 1: P/E Method (Not meaningful)EPS isnegative, so traditional P/E = irrelevant. We move on before our calculator starts crying.
Method 2: EV/EBITDAEV = ₹2,395 CrEBITDA (TTM) = ₹52 CrEV/EBITDA = 46x
Even after normalizing EBITDA to FY23 levels (₹125 Cr), EV/EBITDA = 19x — steep for a company with negative PAT.
Method 3: DCF (Back-of-envelope)Assume cash flow rebound to ₹150 Cr/year by FY28 (management’s $1B revenue target).Discount at 12%, terminal growth 3% — gives EV near ₹1,500–₹1,700 Cr range.
👉Educational Fair Value Range:₹1,600 – ₹1,900 per share.
Disclaimer:This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Let’s open the BirlaNu news buffet:
- Acquisition of Clean Coats (Nov ’25):100% stake acquired for₹120 crore(EV ₹92.5 crore). A niche coatings firm — probably to beef up the construction chemicals play. Will it add shine or debt? Time will tell.
- Greenfield Fibre Cement Board Plant (Aug ’25):₹127 crore capex near Krishnapatnam, Andhra Pradesh. Capacity:72,000 MT/year. Because when OPM hits 1%, adding capacity sounds totally logical.
- AAC Block Expansion (May ’25):Added211,700 m³capacity with ₹44 Cr investment.
- Leadership exits:Chief Marketing Officer and Chief HR Officer both resigned within six months. Seems like HR and marketing both ran out of cement.
- Credit Rating (Aug ’25):ICRA reaffirmed
