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.
BANSALWIRE / bear-case history
Track the concerns that keep returning.
Bansal Wire Industries · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
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.
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.
Execution risk in capacity expansion
The 90,000-ton Sanand greenfield project may face delays; management has flexibility but timelines could slip.
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.
Weak demand outside automotive segment
Consumer durables and infrastructure demand sluggish due to steel price hikes and geopolitical uncertainty.
Steel cord approval delays and competition
Fire incident caused 6-month delay; global players like Bekaert expanding, and new entrants could pressure pricing.