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    Bansal Wire Industries Q1 FY27 earnings call

    BANSALWIRE
    Capital Goods·23 Jul 2026
    Management Summary

    Bansal Wire Industries Limited reported a robust 25% YoY revenue growth to ₹1,168 crores in Q1 FY27, despite initial profitability challenges from geopolitical tensions and higher input costs. The company generated a strong operating cash flow of ₹121 crores and made significant progress in strategic initiatives, including securing a first trial order for its Steel Cord business and seeing its B2C segment contribute 10% to sales. Management remains confident in achieving 20% volume growth for the rest of the year, supported by improving demand and easing industrial gas availability.

    Highlights

    5

    • Revenue of ₹1,168 crores, up 25% YoY, demonstrating strong top-line growth.

    • Operating cash flow stood at ₹121 crores, reflecting continued focus on working capital management.

    • First trial order received for the Steel Cord business, validating capabilities in a high-value segment.

    • B2C segment showed encouraging traction, contributing 10% of sales and strengthening the Bansal brand.

    • Management is confident of achieving 20% volume growth for the remainder of the year.

    Concerns

    2

    • Profitability in the first half of the quarter was impacted by higher input costs and operational disruptions due to geopolitical tensions and natural gas availability issues.

    • EBITDA margin was compressed to ₹2 per kg for the first 45 days of the quarter due to the company absorbing sudden cost increases on existing orders.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • Revenue
      ₹1,168 Cr
      YoY+25%
    • EBITDA
      ₹57 Cr
    • Net Profit
      ₹20 Cr
    • Sales Volume
      1,12,000 metric tonnes
      YoY+7.7%
    • Operating Cash Flow
      ₹121 Cr

    Q1 Blended

    1
    • EBITDA per kg
      ₹4.5

    Segment breakdown

    B2C Segment
    10% Sales Contribution20% EBITDA per tonne (vs B2B)
    Low Carbon Business
    50% Volume Contribution
    IHT/OHT Wires
    9,000 tonnes Capacity10 Rs EBITDA per kg
    List

    Order Book

    medium confidence

    Execution

    We generally carry about 30-40 days of orders with us.

    "The company received its first trial order for the Steel Cord business, which is currently in the trial stage with no confirmed order book yet. For its core business, the company typically carries 30-40 days of orders."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹200 crores

    Liquidity

    Liquidity disclosed

    Generated free cash flow from operating activities of INR 120 crore during the quarter and a healthy operating cash flow of INR 121 crore.

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    Volume Growth
    20%
    		High
    Profitability
    EBITDA Growth
    20%
    		High
    Profitability
    IHT EBITDA per kg
    INR 10-20
    		Medium
    Profitability
    ROCE (Current Business)
    25%
    		Medium
    Capacity
    IHT Capacity Utilization
    50%
    		High
    Capacity
    IHT/OHT Optimum Utilization
    60%-80%
    		Medium
    Market Share
    B2C Sales Contribution (Blended)
    25%
    		High
    Capex
    Annual CAPEX
    INR 200-250 crore
    		High

    What to watch in Q2 FY27

    5

    IHT Capacity Utilization

    next month
    Current~35-40%
    Target50%

    Why it matters

    Indicates ramp-up of new high-margin product and progress towards optimal utilization.

    In IHT, just to give you an example, next month we are targeting 50% capacity utilization.

    Risks & concerns

    3
    RiskSeverity

    Geopolitical Tensions and Natural Gas Disruption

    Geopolitical tension in West Asia created near-term volatility, disrupting natural gas availability and impacting Q1 profitability due to higher input costs. — Management acknowledged

    high

    Raw Material Price Volatility

    While the company generally passes on cost changes, drastic and sudden increases, as seen in Q1, can impact margins on existing firm orders. — Management acknowledged

    medium

    Uncertainty in EBITDA Growth

    Despite a 20% EBITDA growth target, management noted that 'a lot of uncertainty is still remaining here' regarding the exact trajectory. — Management acknowledged

    low

    Q&A highlights

    8

    “The first 45 days is when we saw an exponential increase in all our consumable prices, majorly gas and other packaging and other consumables to the tune of about INR 5,000 a tonne on a blended basis. ... That went with about INR 2 a kg EBITDA margin. ... After the 30-40 days, quarter two back to normal. ... we are back to the INR 7-8 INR a kg EBITDA levels.”

    Clarified the severe but temporary margin compression in early Q1 and the subsequent recovery to normal levels, explaining the quarter's financial performance.

    asked by Kunal Sharma

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance and Margin Recovery

    Bansal Wire Industries Limited reported a revenue of ₹1,168 crores for Q1 FY27, marking a 25% year-over-year growth. However, the first 45 days of the quarter saw profitability impacted by geopolitical tensions in West Asia, leading to natural gas disruptions and higher input costs, which compressed EBITDA margins to ₹2 per kg. The company consciously absorbed these costs on existing orders. By mid-May, conditions improved, and margins recovered to ₹7-8 per kg, bringing the blended Q1 EBITDA per kg to ₹4-4.5.

    02

    Strategic Growth Initiatives Progress

    The company made significant strides in its strategic initiatives. The Steel Cord business received its first trial order from a leading Indian tire manufacturer, validating its capabilities in this import-dominated segment. The IHT wire business continues to progress well, with customer approvals advancing, and the company targets 50% capacity utilization next month, aiming for 60-80% optimum utilization by year-end. The B2C segment, introduced for farming, fencing, and poultry, has shown encouraging response, contributing approximately 10% of sales in Q1 FY27 and offering 20-30% higher EBITDA per tonne compared to B2B.

    03

    Financial Highlights and Cash Flow Generation

    Beyond revenue growth, the company reported an EBITDA of ₹57 crores and a net profit of ₹20 crores for the quarter. Sales volume stood at 112,000 metric tonnes, up from 104,000 metric tonnes in Q1 FY26. A key highlight was the generation of ₹121 crores in operating cash flow and ₹120 crores in free cash flow from operating activities, demonstrating strong working capital management even amidst operational challenges.

    04

    Capital Allocation and Capacity Expansion Strategy

    Bansal Wire Industries Limited plans an annual CAPEX of ₹200-250 crores to support a 20-25% volume growth each year. This strategy is enabled by the company's ability to manufacture over 50% of its equipment in-house, providing flexibility in deploying capital. The company aims to start each year with 20-25% excess capacity to facilitate growth without disruption. Expansion is already underway at the Sanand facility, adding about 90,000 tonnes of wire CAPEX.

    05

    Working Capital and Market Share Focus

    The company continues its focus on tightening the working capital cycle, with inventory days already reduced and efforts underway to bring down receivable days over the next one to two years. Management emphasizes grabbing market share, having historically grown at 20% annually compared to the industry's 7-8%. The company's product diversification, including 20-25 new SKUs developed monthly, also contributes to its growth and market share gains.

    This is an AI-generated summary of a publicly available earnings call transcript.