Bansal Wire Industries Limited — Q3 FY26 earnings call

Call held 20 Jan 2026

Management summary

Bansal Wire Industries Limited reported a strong Q3 FY26, marked by record sales volumes and robust EBITDA growth, driven by sustained demand across key sectors. The company successfully launched new high-value products like IHT wires and is actively expanding capacity for both IHT/OHT and LRPC. While facing minor delays in steel cord production and an apparent typo in reported Q3 revenue, management remains confident in achieving its ROCE and market share targets through strategic product mix upgrades and capacity utilization improvements.

Highlights

  • Achieved strongest ever operating performance with record Q3 sales volume of 121,000 metric tons, a 32% YoY increase.

  • 9-month sales volume grew 38% YoY to 340,000 metric tons, demonstrating consistent growth.

  • Q3 EBITDA increased 19% YoY to INR 87 crores, with an 8.4% margin.

  • Successfully launched IHT wires, stabilizing production within the first month and commencing commercial sales, with capacity expanding from 9,000 to 15,000 tons.

  • Generated INR 85 crores in operating cash flow in Q3, contributing to INR 233 crores for the 9-month period.

Concerns

  • Q3 revenue figure stated as INR 29 crores in the transcript appears to be a significant typo, making direct Q3 revenue analysis difficult.

  • Production for steel cord was delayed by approximately one month due to insurance approval processes following a fire incident.

  • Experienced labor shortages in October and November due to early Diwali and Bihar elections, impacting Q3 volumes.

Key financials

2 periods

Q3

  • Sales Volume
    1,21,000 metric tons
    YoY +32% QoQ +6%
  • EBITDA
    ₹87 Cr
    YoY +19%
  • EBITDA Margin
    8.4%
  • Net Profit
    ₹43 Cr
    YoY +4%
  • Operating Cash Flow
    ₹85 Cr

9M FY26

  • Sales Volume
    3,40,000 metric tons
    YoY +38%
  • Revenue
    ₹3,023 Cr
    YoY +18%
  • Operating Cash Flow
    ₹233 Cr

What they filed

Q1 FY27: revenue up 24.4%, net profit down 48.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue825 925 940 939 1,055 +28%1,029 +11%1,136 +21%1,168 +24%
EBITDA64 72 70 72 77 +20%85 +18%76 +9%56 −22%
Net profit40 42 33 39 38 −5%43 +2%40 +21%20 −49%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    • IHT wire capacity expansion
    • OHT wire Phase 2 expansion
    • LRPC wire capacity at Dadri
    • Low carbon and stainless steel expansion at Sanand
    • Additional capacity at Dadri (60,000 tons)
    • Additional capacity at Sanand (90,000 tons)
    During Q3, we made a significant strategic move by strengthening our specialty wire added portfolio. We have successfully launched induction hardened and tempered, IHT wires, by adding 9,000 tons of high-performance capacity. Looking at the response we are seeing from our customers, we have also started Phase 2 of expansion by adding another 6,000 tons of OHT wire, which would also come on stream within the next 2 to 3 quarters. Alongside this, we continue to see strong traction from LRPC, which was launched at our Dadri facility with a capacity of 18,000 tons. So as of now, the capex that we have planned is 60,000 tons additional for Dadri and about 90,000 tons for Sanand. So from 6.2, we should be able to go to about 7.7.
  • Liquidity Liquidity disclosed The company generated INR 85 crores in operating cash flow in Q3 FY26 and INR 233 crores for the 9-month period. Management also stated they generated almost INR 240 crores of free cash from operations, which was near their full year target, and aim for INR 350 crores next year.
    The operating cash flow generated during the 9 months period, INR233 crores and the company generated cash flow from the operation during this quarter that is INR85 crores. For the 9 months period ended financial '26, revenue grew by 18% year-on-year to INR3,023 crores, while the EBITDA came in INR243 crores, reflecting an increase of 19% year-on-year. Net profit of 9 months for financial '26 stood at INR121 crores, higher by 7% on a year-on-year basis. I think we have a quarter left, we should be seeing similar trend in Q4 as well. For the next year, we our target was INR350 crores. I think that is still intact. Looking at what we did in this year, we should be able to achieve that easily as well.

Guidance & targets

Profitability

  • Return on Capital Employed (ROCE) Profitability · by end of next year · High confidence 25%
    Our ROCE has also been consistently improving every quarter. And I believe we are on track to achieving 25% ROCE by the end of next year.

    — Pranav Bansal

  • EBITDA Growth Profitability · every year · High confidence 20% to 25%
    So I think the standard 20%, 25% kind of growth we would like to achieve every year.

    — Pranav Bansal

  • EBITDA per ton Profitability · next 1 or 2 years · Medium confidence INR 8 to 9

    From INR 7 to 7.1 today

    gradually, the target, of course, is to increase this to 8, 8.5 or 9 over the next 1 or 2 years.

    — Pranav Bansal

Volume

  • Volume Growth Volume · within this year · High confidence 40%

    Previously 30% → 40%

    So as I mentioned before, our target for this year was a growth of about 30%, which we revised to maybe towards 40% within this year. I think we've done more than 35% growth till now. So that should remain positive for the fourth quarter as well.

    — Pranav Bansal

Capacity Utilization

  • IHT Capacity Utilization Capacity Utilization · this year · High confidence 40%
    Our now target -- revised target for this year is to reach about 40% capacity utilization.

    — Pranav Bansal

  • Overall Capacity Utilization Capacity Utilization · within next 2 to 3 quarters · High confidence 90%

    From 78% today

    As far as capacity utilization go, our target is always to achieve 90% kind of a capacity utilization. ... current trajectory, we are already at 78%. So within this capacity that we have of 6.2 lakh tons, I think we should be able to do that within the next 2 quarters, 2 or 3 quarters, I think.

    — Pranav Bansal

Capacity

  • IHT/OHT Capacity Expansion Capacity · next 2 to 3 quarters · High confidence 15,000 tons

    Previously 9,000 tons → 15,000 tons

    So the capacity was 9,000 tons, which we are now expanding to 15,000 tons. This should be done in the next 2 to 3 quarters.

    — Pranav Bansal

Product Mix

  • Specialty Wire Contribution to EBITDA Product Mix · going forward · Medium confidence 15% to 20%
    But in terms of contribution towards EBITDA, I think this can be contributing about 15% to 20% of the total EBITDA going forward.

    — Pranav Bansal

Market Share

  • Market Share Market Share · next 2 to 3 years · High confidence 10%

    From 6% or 7% today

    I think we were at about 6% or 7% kind of a market share. ... in the very near future in the next 2 to 3 years, I think we should be able to go to a 10% kind of a market share.

    — Pranav Bansal

Sales Mix

  • B2C Sales Percentage Sales Mix · next year · High confidence 12% to 15%

    From 7% today

    in the third quarter itself, we have already crossed 7% B2C sales. And our target for next year is to achieve a 12% to 15% kind of a number.

    — Pranav Bansal

Capex

  • Dadri 60,000 tons capacity commissioning Capex · in another 3, 4 days (from Jan 20, 2026) · High confidence commissioned
    for the 60,000 ton capex for Dadri, I think now we have -- I think we will be commissioning it in another 3, 4 days.

    — Pranav Bansal

  • Sanand 90,000 tons capacity commissioning Capex · by end of next year / third or fourth quarter, next fiscal year · Medium confidence commissioned
    For 90,000 tons, I think the time lines are still intact by end of next year is when we are expecting that to happen. ... Yes. Third or fourth quarter, yes.

    — Pranav Bansal

What to watch in Q4 FY26

Dadri 60,000 tons capex commissioning

Q4 FY26
Current Expected in 3-4 days from Jan 20, 2026
Target Commissioned and operational

Why it matters

Timely commissioning of this capacity is crucial for immediate volume growth and operational efficiency.

for the 60,000 ton capex for Dadri, I think now we have -- I think we will be commissioning it in another 3, 4 days.

Risks & concerns

  • Typo in Q3 Revenue Reporting

    medium

    The reported Q3 revenue of INR 29 crores is inconsistent with other financial metrics and 9-month figures, suggesting a typo in the transcript.

    Analyst not addressed

  • Delay in Steel Cord Commercial Sales

    low

    Commercial sales for steel cord are delayed by approximately one month due to insurance approval processes following a fire incident, but the Q2/Q3 next year target remains.

    Management acknowledged

  • Labor Shortages Impacting Q3 Volumes

    low

    Labor shortages in October and November due to early Diwali and Bihar elections impacted volumes in the first two months of Q3.

    Management acknowledged

  • Slower-than-expected Dadri Ramp-up

    low

    The ramp-up at the Dadri facility has been slower than initially expected, impacting the shift of production from older plants.

    Management acknowledged

Q&A highlights

7 direct
Resolution of GST-related demand Direct
So basically, I think these were some unrealistic demand that came from the GST department, which I think we've already settled to the tune of we have reduced it to the tune of 98%, 99% and the remaining will also be squashed very soon. ... No, almost nothing [impact on financials].

Clarified that a significant INR 206 crore GST demand is largely resolved with minimal financial impact, removing a potential overhang.

Asked by Kunal Sharma

IHT/OHT capacity expansion and utilization targets Direct
the capacity was 9,000 tons, which we are now expanding to 15,000 tons. This should be done in the next 2 to 3 quarters. ... revised target for this year is to reach about 40% capacity utilization.

Provided specific numbers and timelines for the expansion of high-value IHT/OHT products and their expected utilization, indicating future growth drivers.

Asked by Kunal Sharma

PAT not reflecting EBITDA growth due to capitalization Direct
in the last quarter, we have capitalized all interest costs. We have capitalized all investments. Therefore, you see a jump in depreciation as well as interest. Although our cash profit has increased by 15%, 20%, but PAT level does not reflect that because of higher depreciation. But we don't have any more interest or depreciation cost that we are capitalizing anymore. So any growth here on in EBITDA should also reflect in PAT.

Explained the discrepancy between strong EBITDA growth and lower PAT, attributing it to accounting for capitalized interest and depreciation, and indicated future PAT will align better with EBITDA.

Asked by Kunal Sharma

Timeline for steel cord commercial sales after fire incident Partial
I think we are behind by a month because of some approvals that we have now received from the insurance companies to start production. ... So Q2, Q3 is our target still for starting supplies of steel cord.

Provided an updated timeline for the high-margin steel cord product, acknowledging a slight delay but maintaining the overall target for commercial sales.

Asked by Veenit

Consolidation of related party entities and older plants Direct
on financials, that has been consolidated last year. ... there is still some production happening in those 2 entities in the older plants, but that is only being done for Bansal Wire. ... those 2 entities have to just shut down. ... The plant and equipment, all of it was already purchased by Bansal Wire. So they're just operating on lease as of now.

Clarified the status of related party entities, confirming financial consolidation and the eventual shutdown of older, unviable plants as production shifts to Dadri, streamlining operations.

Asked by Adityapal

Capacity breakdown and future roadmap for product mix Direct
out of our capacity of 620,000 tons, I would say about 55%, 60% is low carbon, 20% would be stainless steel and the rest will be high carbon. ... going forward also, we are looking at similar numbers. The only difference could be in low carbon where we expect at least 60%, 62% of the total capacity.

Provided a detailed breakdown of current and future product mix by capacity, highlighting the strategic shift towards higher-value segments like specialty wires while maintaining a strong low-carbon base.

Asked by Parthiv Jhonsa

Commercialization timeline for Dadri and Sanand capex Direct
for the 60,000 ton capex for Dadri, I think now we have -- I think we will be commissioning it in another 3, 4 days. ... For 90,000 tons, I think the time lines are still intact by end of next year is when we are expecting that to happen. But again, I mean, these are very modular things. So we keep on adjusting it.

Gave specific, near-term commissioning dates for significant capacity additions at Dadri and Sanand, crucial for future volume growth.

Asked by Deepak

Impact of product mix on EBITDA per ton and B2C sales strategy Direct
our thought process on EBITDA is to grow at 20%, 25% on the absolute number. ... in low carbon, our EBITDA per ton is also increasing. ... our target for next year is to achieve a 12% to 15% kind of a number [for B2C sales].

Addressed concerns about EBITDA per ton trends, explaining that while product mix shifts, B2C growth in low carbon and specialty additions will drive overall EBITDA per ton improvement.

Asked by Deepak

3 min read 6 chapters

Detailed narrative

Strong Operational Performance and Volume Growth

Bansal Wire Industries Limited delivered its strongest ever operating performance in Q3 FY26, achieving a record sales volume of 121,000 metric tons, representing a 32% year-on-year and 6% sequential growth. For the nine months ended December 31, 2025, total sales volume reached 340,000 metric tons, a healthy 38% year-on-year increase. This growth was supported by robust demand across automotive, infrastructure, and general engineering sectors, despite initial challenges in October and November due to labor shortages.

Strategic Product Mix Upgrade and Capacity Expansion

The company is actively upgrading its product mix towards higher-value segments. It successfully launched Induction Hardened and Tempered (IHT) wires, adding 9,000 tons of high-performance capacity, which is now expanding to 15,000 tons within the next 2-3 quarters. Additionally, Phase 2 expansion for OHT wire, adding 6,000 tons, is expected to come online within the next 2-3 quarters. The Dadri facility continues to see strong traction for LRPC wires, with 18,000 tons capacity catering to infrastructure applications.

Financial Performance and Profitability Drivers

For Q3 FY26, EBITDA increased by 19% year-on-year to INR 87 crores, achieving an 8.4% margin. Net profit for the quarter was INR 43 crores, up 4% YoY. For the nine-month period, revenue grew 18% YoY to INR 3,023 crores, with EBITDA at INR 243 crores (up 19% YoY) and net profit at INR 121 crores (up 7% YoY). Management clarified that PAT growth lagged EBITDA due to capitalized interest and depreciation from recent investments, but future PAT is expected to align more closely with EBITDA growth as capitalization ceases.

Capital Allocation and Cash Flow Generation

The company generated INR 85 crores in operating cash flow during Q3, contributing to INR 233 crores for the nine-month period. Management highlighted generating approximately INR 240 crores of free cash from operations, nearly achieving their full-year target, and set a target of INR 350 crores for the next fiscal year. Capex plans include 60,000 tons additional capacity at Dadri and 90,000 tons at Sanand, with the Dadri expansion expected to be commissioned within days of the call.

Market Share and Future Outlook

Bansal Wire Industries aims to increase its market share from the current 6-7% to 10% within the next 2-3 years, driven by a volume growth target of 20-25% annually. The company is also focusing on increasing its B2C sales, targeting 12-15% for the next year, up from 7% in Q3 FY26. Management expects EBITDA per ton to gradually increase to INR 8-9 over the next 1-2 years, supported by a favorable product mix and B2C growth in low carbon wires.

Resolution of GST and Fire Incident Impacts

The company addressed a significant GST-related demand of INR 206 crores, stating that the issue is largely resolved with minimal financial impact, as most of the demand has been settled or appealed. A fire incident in the specialty wire shed resulted in an exceptional loss of INR 1.5 crores due to inventory, but all other assets were insured, and no material impact is expected in Q4. Production for steel cord was delayed by about a month due to insurance approvals but is on track for commercial sales by Q2/Q3 of next year.

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