Bansal Wire Industries Limited

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.

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.

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.

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.

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.

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.