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Bansal Wire Industries Ltd — Q4 FY26
Bansal Wire reported Q4 FY26 revenue of ₹1,136 crore (+21% YoY) and PAT of ₹40 crore (+21% YoY), with EBITDA margin at 7.0%.
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Bansal Wire reported Q4 FY26 revenue of ₹1,136 crore (+21% YoY) and PAT of ₹40 crore (+21% YoY), with EBITDA margin at 7.0%. Volume grew 20% YoY to 1.17 lakh MT, though sequential decline due to natural gas supply disruption in March. Full-year volume hit a record 4.58 lakh MT (+33% YoY). Management highlighted a subdued start to FY27 due to ongoing gas issues and sluggish demand outside automotive, but reiterated a 20% growth target once conditions normalize. Steel cord trial orders are expected soon from top tire companies, with commercial ramp-up possible in H2. Capex guided at ₹150-200 crore for FY27, adding ~1.2 lakh MT capacity at Dadri. Key risk: sustained gas price escalation and demand weakness could pressure near-term margins.
Promises0 met · 2 missedRisks3 trackedTranscriptfull text
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0 delivered, 0 close, 2 missed.
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Risk Intelligence
Natural gas supply disruption and price escalation
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Transcript
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Sales Volume (Q4)
1.17 lakh MT
+20% YoY
Quarterly volume grew 20% YoY despite gas disruption in March.
Annual Sales Volume (FY26)
4.58 lakh MT
+33% YoY
Record annual volume, driven by broad-based demand across segments.
Capacity Utilization (FY26)
67%
Overall capacity utilization for FY26; target 80-85% in normal conditions.
Product Mix (Low Carbon)
55%
Low carbon steel wires constitute ~55% of product mix; high carbon 25%, stainless 20%.
What Changed vs Last Quarter
NEW
20% volume and EBITDA growth target once conditions normalize
Management expects to return to 20% growth trajectory after geopolitical and gas supply disruptions subside.
NEW
Capex of ₹150-200 crore for FY27
Majority of cash flow to be reinvested; capacity to increase from 6.8 lakh MT to ~8.5 lakh MT by year-end.
NEW
Steel cord trial order expected soon; commercial ramp-up in H2 FY27
First trial order from top tire company; regular supply expected later in the fiscal year.
DROPPED
Volume growth of 35-40% for FY26
Management expects to achieve 35-40% volume growth for the full year, with Q4 likely to be better than Q3.
DROPPED
EBITDA per ton to improve to ₹8-8.5/kg over 1-2 years
As specialty wire (IHT, OT, steel cord) ramps up, EBITDA per ton is expected to increase from current ~₹7/kg to ₹8-8.5/kg in the next 1-2 years.
DROPPED
Free cash flow target of ₹350 crore for FY27
Management targets ₹350 crore of free cash flow from operations in FY27, driven by discounting, channel financing, and operational improvements.
DROPPED
Capacity expansion to 7.7 lakh tons by FY27-end
60,000-ton brownfield expansion at Dadri to be commissioned in Q4 FY26; 90,000-ton greenfield at Sanand by Q3/Q4 FY27.
NEW RISK
Natural gas supply disruption and price escalation
Gas prices remain elevated (50-300% increase), impacting production and margins; Q1 FY27 volumes expected at 80-85% of normal.
NEW RISK
Weak demand outside automotive segment
Consumer durables and infrastructure demand sluggish due to steel price hikes and geopolitical uncertainty.
NEW RISK
Steel cord approval delays and competition
Fire incident caused 6-month delay; global players like Bekaert expanding, and new entrants could pressure pricing.
RISK GONE
GST demand of ~₹206 crore
A GST notice of ~₹206 crore was received; management claims 98-99% has been settled and the rest will be squashed, but residual risk remains.
RISK GONE
Fire incident at specialty wire shed
A fire in the specialty wire shed caused inventory loss of ₹1.5 crore and delayed steel cord approvals by about a month.
RISK GONE
EBITDA per ton dilution from product mix shift
Increasing low-carbon wire share (from 55% to 60%) could pressure blended EBITDA per ton, though management expects specialty wire to offset.
RISK GONE
Execution risk in capacity expansion
The 90,000-ton Sanand greenfield project may face delays; management has flexibility but timelines could slip.
Fast read
Guidance and risk preview
Management expects to return to 20% growth trajectory after geopolitical and gas supply disruptions subside.
Gas prices remain elevated (50-300% increase), impacting production and margins; Q1 FY27 volumes expected at 80-85% of normal.
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