Behari Lal Engineering, once a Punjab steel trading house, raised ₹301.62 crore in August 2026. Its IPO was subscribed 108.44 times and the stock rerated over 63% on listing day, opening at ₹458 on BSE.
Incorporated in 1995 as Behari Lal Ispat, the company started as a trader of billets, sponge iron and ferroalloys. In 2012 it began manufacturing steel at Mandi Gobindgarh, Punjab, later adding rolling mills and adopting the Engineering name.
Domestic steel consumption grew from roughly 100 million tonnes in FY20 to about 169 million tonnes by FY26, a 9.1% CAGR. The National Steel Policy targets 300 million tonnes capacity by 2031, expanding demand for rolling mill consumables.
FY26 revenue split: alloy steel products 45.81%, metal rolls 26.35%, engineering castings 19.54%, and forging ingots 4.40%. Customized high-value products exceeded 91.7% of revenue, marking the shift away from commoditized mild steel.
Revenue rose from ₹446.08 crore in FY24 to ₹534.03 crore in FY26, a 9.41% CAGR. Profit after tax grew at 34.38% CAGR to ₹64.64 crore, while raw material costs fell from 70.7% to 52.6% of sales.
The ₹301.62 crore IPO ran August 12–14, 2026: fresh issue ₹93 crore, offer for sale ₹208.62 crore. QIB portion subscribed 165.33x, retail 53.27x. Shares listed at ₹458 on BSE and ₹465 on NSE.
Behari Lal estimates its domestic metal roll market share at 10.0%–11.5%, serving rolling mills and heavy machinery makers. Metal rolls contributed 26.35% of FY26 revenue, while repeat customers generated 84.69% of revenue.
Backward integration from scrap melting to CNC machining helps capture margin at every stage and avoid commoditized steel pricing. Order book was ₹178.57 crore in May 2026, and exports reached 21 countries since April 2024.
Net working capital rose from ₹119.64 crore in FY24 to ₹192.45 crore in FY26; inventory days stretched from 34 to 57. Operating cash flow dropped from ₹61.89 crore in FY25 to ₹27.54 crore in FY26. Raw materials are bought on spot, without fixed-price contracts.
Behari Lal's transformation is validated by margin expansion and listing demand, but sustaining its rerating will depend on cash conversion and inventory discipline. Read the full deep dive for the complete analysis.
Read the full analysis →