Birla Corporation (BCORP)’s 2QFY26 EBITDA was above our estimates, led by lower-than-estimated opex/t and better performance in the Jute business. EBITDA increased ~72% YoY to INR3.0b (~31% beat). EBITDA/t grew ~61% YoY to INR717 (est. INR559). OPM expanded 4.7pp YoY to ~14% (est. ~11%). It reported a PAT of INR905m (~139% above our estimate, aided by higher other income and lower interest costs vs. our estimate).
OutlookWe estimate BCORP’s revenue/EBITDA/PAT CAGR of ~8%/17%/31% over FY25 28. Estimate EBITDA/t at INR758/INR833/INR879 in FY26/FY27/FY28E vs. INR672 in FY25. BCORP trades attractively at 7x/6x FY27E/FY28E EV/EBITDA and EV/t of USD52/USD50. We value the stock at 8x Sep’27E EV/EBITDA to arrive at our TP of INR1,600. Reiterate BUY.
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