Bansal Wire Industries Limited — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Bansal Wire Industries Limited delivered strong Q4 and FY26 results, driven by 33% volume growth and healthy revenue and EBITDA increases. The company exceeded its cash flow generation target and expanded capacity, particularly at its Dadari facility. While the Steel Cords segment shows promising progress, management expects a subdued Q1 FY27 due to external headwinds like geopolitical tensions and gas supply issues, which also pressured Q4 EBITDA per ton. The company remains committed to its 20% long-term growth trajectory.

Highlights

  • FY26 volumes grew 33% YoY to 4.58 lakh metric tons, marking the highest annual sales volume for the company.

  • FY26 revenue increased 19% to INR 4,160 crore, and EBITDA grew 17% to INR 325 crore.

  • Cash flow generation reached INR 333 crores, exceeding the initial target of INR 250 crores and remaining on track for INR 600 crores by 2027.

  • Installed capacity expanded by 1,20,000 tons at Dadari, contributing to a total of approximately 6,80,000 metric tons.

  • The B2C segment strengthened with 16 new product offerings and expanded distribution, showing positive momentum.

Concerns

  • Q1 FY27 is anticipated to have a subdued start due to geopolitical tensions and temporary natural gas disruptions.

  • Q4 FY26 EBITDA per ton was impacted by a significant increase in gas prices (INR 4,000-5,000 per ton) in the last 15 days of March.

  • Demand remains sluggish in most sectors, excluding automotive, contributing to volume uncertainty in the near term.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹1,136 Cr
    YoY +21%
  • EBITDA
    ₹80 Cr
  • EBITDA Margin
    7%
  • Net Profit
    ₹40 Cr
    YoY +21%

FY26

  • Volumes
    4,58,000 metric tons
    YoY +33%
  • Revenue
    ₹4,160 Cr
    YoY +19%
  • EBITDA
    ₹325 Cr
    YoY +17%
  • Net Profit
    ₹161 Cr
    YoY +10%

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.

Segment breakdown

  • Product Mix (General Split)
    55% Low Carbon (MS)25% High Carbon20% Stainless Steel3% Speciality

Order book

medium confidence
The company operates with a 30-40 day order book, which influences its ability to pass on cost increases immediately.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹200 Cr majority of or maybe 60-70% of our cash flows
    • Capacity expansion to support 20% growth
    FY27, or in fact, even in the year later, I think our CAPEX strategy is now focused on our cash flows. So, what we are expecting is majority of or maybe 60-70% of our cash flows, we will put back into CAPEX. So, maybe INR 150 crores - INR 200 crores, something like that, to generate enough capacities to grow at 20%.
  • Debt Debt disclosed
    • New borrowing Included discounting limits for purchases, leading to higher payables and potential increase in interest expense, but not disproportionately.
    Yes. So, sir, we are still buying from our main suppliers. And with most of those suppliers, we are still paying advance. But we have also included a lot of discounting limits from this year, which is where you are seeing the payable going high. So, this is part of the discounting facility that we have done in purchases. Our vendor is still getting advance payment, whereas we get that kind of a credit.
  • Liquidity Liquidity disclosed Generated a cash flow of INR 333 crores, exceeding initial target of INR 250 crores, and remains on track for INR 600 crores by 2027.
    And as a result, we were able to generate a cash flow of INR 333 crores exceeding our initial target of INR 250 crores and we remain on track for achieving our total target of INR 600 crores by 2027.

Guidance & targets

Growth

  • Overall Growth Trajectory Growth · long-term · High confidence 20%
    But once conditions stabilize, we still expect us to return on our targeted 20% growth trajectory, supported by our strategic initiatives and already available capacity.

    — Pranav Bansal

Cash Flow

  • Cash Flow Generation Cash Flow · by 2027 · High confidence INR 600 crores
    And as a result, we were able to generate a cash flow of INR 333 crores exceeding our initial target of INR 250 crores and we remain on track for achieving our total target of INR 600 crores by 2027.

    — Pranav Bansal

Capacity

  • Installed Capacity Capacity · by end FY27 · High confidence 8 lakh metric tons

    From 6.8 lakh metric tons today

    From 6.8 lakh, it should be at least 8 lakhs. And with Sanand coming in, it might be 8.5 or 8.6, something like that.

    — Pranav Bansal

Capex

  • Annual CAPEX Capex · FY27 · High confidence INR 150-200 crores
    So, our CAPEX investment side should be capped at INR 200 crores or something like that. We should not be going higher than that for a year to be growing at this pace.

    — Pranav Bansal

Profitability

  • EBITDA per ton Profitability · post normalization · Medium confidence same or better
    But once we turn back to normal, I think our EBITDA per ton should be same, if not better.

    — Pranav Bansal

Capacity Utilization

  • IHT Capacity Utilization Capacity Utilization · ongoing · High confidence increase by 10-15% monthly

    From 25% in March today

    But, yes, I would say in the month of March alone, we were at about 25% capacity utilization in IHT and which should increase by 10-15% every month.

    — Pranav Bansal

  • Overall Capacity Utilization Capacity Utilization · FY27 · High confidence 80-85%

    From 67-68% (FY26) today

    Sir, yes, I think 80-85% is where I get the best return ratios for my investment.

    — Pranav Bansal

Steel Cords

  • Regular Supply Level for one customer Steel Cords · H2 FY27 · Medium confidence achieved
    Okay. And that is expected to happen in H2 of this fiscal year, correct? Yes, that's the thought process. But that's only one customer. Overall, we are still expecting the other customers to be in line by the end of this year.

    — Pranav Bansal

What to watch in Q1 FY27

Q1 FY27 Volume Recovery and Normalization

Next quarter
Current 80-85% volume, 20% production cut in April
Target Return to 20% growth trajectory

Why it matters

Indicates recovery from demand and gas disruptions, crucial for overall performance.

Q1, we started with, of course, lesser volumes. In fact, last month, our volumes were cut to an extent of 35%. However, those are back. We are now expecting about 80-85% kind of our volumes to be there... But, yes, what I can say is that once we normalize, I think overall we are still expecting 20% kind of a number to be there.

Risks & concerns

  • Geopolitical Tensions and Supply Chain Volatility

    medium

    Geopolitical tensions involving Iran and Israel led to volatility in global energy markets and supply chain challenges, contributing to a subdued Q1 FY27 outlook.

    Management acknowledged

  • Temporary Natural Gas Disruption

    medium

    A temporary disruption in natural gas supply caused production to be cut to 35% in March, impacting Q4 production and EBITDA per ton.

    Management acknowledged

  • Sluggish Demand in Key Sectors

    medium

    Demand remains sluggish in consumer durable and infrastructure sectors, with only the automotive segment showing resilience, leading to uncertainty in Q1 FY27 volumes.

    Management acknowledged

  • EBITDA per ton Pressure from Gas Prices

    medium

    A significant increase in gas prices (INR 4,000-5,000 per ton) in late Q4 and early Q1, combined with a 30-40 day order book at old pricing, resulted in a hit to EBITDA per ton.

    Management acknowledged

Q&A highlights

5 direct
Q1 FY27 Outlook, Gas Availability, and Volume Disruption Partial
Q1, we started with, of course, lesser volumes. In fact, last month, our volumes were cut to an extent of 35%. However, those are back. We are now expecting about 80-85% kind of our volumes to be there. But other than volume, there is also an issue in demand as of now.

Analyst sought quantification of Q1 headwinds, and management provided current volume status and acknowledged demand issues, indicating near-term uncertainty.

Asked by Parthiv Jonsa

Steel Cords Business Progress and Trial Orders Direct
So, the order we would be receiving would be from the top four companies in India. Yes, our year started slowing because of the fire incident, but we picked up. It will be our first trial order. Once we supply that order and if the customer finds everything to be intact, then we can expect a regular order from these customers.

Clarified the status of the Steel Cords segment, confirming an imminent first trial order from a major customer and outlining the path to regular supply.

Asked by Parthiv Jonsa

Product Mix and EBITDA Contribution Partial
Yes, so overall our product mix has remained the same. I think 55%-ish of low carbon, 25 high carbon and 20 percent stainless steel in general. This is the broad start process that we have and there has not been a major change here. Sir, we would not be able to give you separate EBITDA levels for all streams. What we would be showing to you is the EBITDA per ton on a blended basis, this is where we focus on.

Management provided the overall product mix but declined to give segment-specific EBITDA, indicating a focus on blended profitability.

Asked by Parthiv Jonsa

Payables Increase and Impact on Interest Expense Direct
Yes. So, sir, we are still buying from our main suppliers. And with most of those suppliers, we are still paying advance. But we have also included a lot of discounting limits from this year, which is where you are seeing the payable going high. So, this is part of the discounting facility that we have done in purchases. Our vendor is still getting advance payment, whereas we get that kind of a credit. That will definitely lead to increase in our interest expense, but not disproportionately.

Explained the reason for increased payables (discounting facility) and its expected, non-disproportionate impact on interest costs, clarifying working capital strategy.

Asked by Deepak

Capital Work-in-Progress (CWIP) and Future Capacity Direct
So, this capital work-in-progress is part of the 60,000 tons also, which we have installed but not commissioned till date. That will happen in this month, month of April. And second, this is also part of some ongoing investment to further enhance our Dadri facility. So, from this 6.8 lakh tons, we would want to this year add another 1.2 lakh tons so that we are prepared for the year after this.

Clarified the composition of CWIP, detailing commissioning timelines for existing capacity and plans for further expansion at Dadri to support future growth.

Asked by Deepak

Steel Cords Barriers to Entry and Market Confidence Direct
Sure, sir. So, sir there are, what we at least feel, a lot of barriers to entry in this product. Technology is one. To get the right people is another. We already have about 60 trained people in this field. And it is not very easy to get the right set of people. Technology also, we have exclusive collaborations, exclusive tie-ups with our suppliers. And there are probably very limited turnkey solution providers in this product.

Management articulated key competitive advantages and barriers to entry for the Steel Cords business, reinforcing confidence in their market position.

Asked by Poojan Shah

FY27 CAPEX Strategy and Flexibility Direct
Sir, we have a lot of flexibility here because we have our own machinery division. So, we have a lot of flexibility as to when, which month, and which quarter we need to invest looking at our utilization levels. Our thought process overall is to generate 20% capacity every year and grow at 20% keeping at a good utilization level.

Highlighted the company's flexible CAPEX approach, leveraging internal capabilities to align investments with utilization levels and growth targets.

Asked by Heet Shah

Gas Price Escalation and Q1 FY27 EBITDA Impact Partial
Sir, gas prices have still not returned to normal. They are still escalated. In some units it is about 50%. In some units it has gone up to 300% as well. Blended I would say would be at least about 50%. Sir, it depends, right now we are only you know in the first month and we are seeing demand coming back. So, I don't think the whole of the 1st Quarter should go to that extent. I am sure we will see some recovery happening and this INR 2,000 to INR 2,500 a ton level is only for the 30 to 40 days of order book.

Provided specific figures for gas price escalation in Q1 FY27 (blended 50%) and clarified its temporary impact on EBITDA per ton due to existing order book pricing.

Asked by Parthiv Jonsa

3 min read 7 chapters

Detailed narrative

Q4 & FY26 Financial Performance Overview

Bansal Wire Industries Limited reported robust financial results for Q4 and FY26. For the full year FY26, volumes grew by 33% to 4.58 lakh metric tons, marking the highest annual sales volume. Revenues for FY26 stood at INR 4,160 crore, a 19% increase over FY25, while EBITDA grew 17% to INR 325 crore, and net profit rose 10% to INR 161 crore. In Q4 FY26, the company delivered a sale of 1.17 lakh metric tons, reflecting a 20% year-on-year increase, with revenues of INR 1,136 crore and a net profit of INR 40 crore.

Strategic Focus and Cash Flow Generation

The company emphasized its improved focus on ROCE and cash flow generation, deferring its backward integration project to realign strategy towards core competencies. This approach resulted in a cash flow of INR 333 crores, exceeding the initial target of INR 250 crores. Bansal Wire Industries remains on track to achieve a total cash flow target of INR 600 crores by 2027, positioning it to fund growth ambitions while maintaining financial discipline.

Capacity Expansion and Product Portfolio Development

Bansal Wire Industries' installed capacity now stands at approximately 6,80,000 metric tons. The Dadari facility saw an addition of 1,20,000 tons of capacity, completing its first phase of expansion, which supports volume growth and enhances operational efficiency. The company also made meaningful progress in its speciality and value-added wire portfolio, with IHT Wire showing strong momentum and the LRPC wire product (18,000 tons capacity) starting to generate positive EBITDA.

Q1 FY27 Outlook and Headwinds

Management anticipates a relatively subdued start to Q1 FY27, primarily due to geopolitical tensions involving Iran and Israel, which caused volatility in global energy markets and supply chain challenges. A temporary disruption in natural gas supply also led to a production cut to 35% in March, impacting Q4 production and EBITDA per ton. Despite these headwinds, the company is proactively taking measures to mitigate impacts and remains confident in its ability to navigate near-term challenges and return to a targeted 20% growth trajectory.

Steel Cords Business Development

The Steel Cords segment achieved a major breakthrough, with the company expecting its very first trial order soon from one of the top four companies in India. Management highlighted significant barriers to entry in this product, including technology, specialized personnel, exclusive collaborations, and a lengthy approval process, which provide a competitive advantage. Regular supply for one customer is expected by H2 FY27, with other customers potentially coming online by the end of FY27.

Capital Expenditure and Future Growth Plans

The company's CAPEX strategy for FY27 is focused on utilizing cash flows, with an estimated INR 150-200 crores allocated to generate sufficient capacity for 20% growth. Current capital work-in-progress (INR 213 crores) includes 60,000 tons installed but not yet commissioned (expected April) and ongoing investments at Dadari to add another 1.2 lakh tons this year. Total installed capacity is projected to reach 8-8.6 lakh metric tons by the end of FY27, with an overall capacity utilization target of 80-85%.

Working Capital Management and Payables

The company observed a spike in payables, which was attributed to the implementation of discounting limits for purchases. This strategy allows vendors to receive advance payments while Bansal Wire Industries benefits from extended credit terms. Management acknowledged that this could lead to a non-disproportionate increase in interest expense but is part of an effort to reduce total working capital days.

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