Bansal Wire Inds

Bansal Wire Industries Limited reported its strongest ever operating performance in Q3 FY26, achieving a record sales volume of 121,000 metric tons. This represents a robust 32% year-on-year growth and 6% sequential growth. For the nine months ended December 31, 2025, total volume reached 340,000 metric tons, a 38% increase YoY, demonstrating consistent growth trajectory. The company also recorded its highest ever monthly sale of 45,000 tons in December.

The company is actively upgrading its product mix towards higher-value segments. During Q3, Bansal Wire successfully launched Induction Hardened and Tempered (IHT) wires, adding 9,000 tons of high-performance capacity, primarily for automotive suspension springs. This capacity is targeted to reach 40% utilization by FY26 and will be expanded to 15,000 tons in the next 2-3 quarters. Additionally, Phase 2 expansion for OHT wire, adding another 6,000 tons, is expected to come online within the next 2-3 quarters.

In Q3 FY26, revenue grew 11% year-on-year to INR29 crores, while EBITDA increased by 19% to INR87 crores, achieving a margin of 8.4%. Net profit for the quarter was INR43 crores, up 4% YoY. For the nine-month period, revenue was INR3,023 crores (up 18% YoY) and EBITDA was INR243 crores (up 19% YoY). The company generated INR233 crores in operating cash flow for the nine months, with INR85 crores in Q3, nearing its full-year target of INR240 crores.

Management clarified that GST-related issues, which previously involved a notice of INR206 crores, have been largely resolved, with 98-99% of the demand settled and minimal financial impact expected. Regarding the consolidation of related party entities (Balaji Wires and Bansal High Carbons), the financials were consolidated in Q3 of the previous year. The remaining production from these older, unviable plants, which currently serve Bansal Wire, will cease as capacity shifts to the Dadri facility, with no merger planned.

The company's installed capacity stands at approximately 618,000 metric tons, with current utilization at 78%. The target is to achieve 90% capacity utilization. Bansal Wire plans to expand its total capacity from 6.2 lakh tons to 7.7 lakh tons, with an additional 60,000 tons at Dadri expected to be commissioned in Q4 FY26 and 90,000 tons at Sanand by Q3/Q4 FY27. The company aims to grow its market share to 10% in the next 2-3 years, up from the current 6-7%.

The specialty wire portfolio, including IHT and OHT, is performing better than expected, with IHT stabilizing within the first month of installation. The specialty wire capacity is set to expand from 29,000 tons to 35,000 tons in the next 2-3 quarters. While a fire incident in the specialty wire shed caused a delay in steel cord approvals, management expects commercial sales for steel cord to commence by Q2 or Q3 of FY27. Specialty wires are projected to contribute 15-20% of total EBITDA going forward^⏳.

The company is focusing on expanding its B2C segment, which grew from 5% of sales in Q2 to 7% in Q3 FY26. The target for B2C sales contribution is 12-15% for the next fiscal year. Management believes that a stronger B2C portfolio will help improve EBITDA per ton in the low carbon wire segment, potentially bringing it closer to the average EBITDA per ton levels of the company.