Summary
Bansal Wire Industries Limited - Q3 FY 2026 Earnings Call Summary Tuesday, January 20, 2026 4:00 PM
Event Participants
Executives 2 Ghanshyam Das Gujrati (CFO), Pranav Bansal (MD & CEO)
Analysts 5 Adityapal (MSA Capital Partners), Deepak (Sundaram Mutual Fund), Het Shah (Dalal & Broacha), Kunal Sharma (Veritas Research & Advisors), Parthiv Jhonsa (Anand Rathi)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Sales Volume | 121,000 metric tons | +32% YoY and +6% QoQ; highest quarterly volume recorded to date. |
| Revenue | ₹1,029 crores | +11% YoY; growth driven by volume expansion despite product mix shifts. |
| EBITDA | ₹87 crores | +19% YoY; margin stood at 8.4% reflecting stable operating execution. |
| Net Profit (PAT) | ₹43 crores | +4% YoY; impacted by higher depreciation and interest capitalization from recent capex. |
| Free Cash Flow (9M) | ₹233-240 crores | Significant improvement; already achieved near full-year target of ₹250 crores. |
| Installed Capacity | 618,000 metric tons | Expanded manufacturing base supporting 38% volume growth for 9M FY26. |
| ROCE | ~20% (Trailing) | Management targeting 25% ROCE by the end of next fiscal year. |
Geographic & Segment Commentary
- Automotive & Specialty Wires: Successful launch of Induction Hardened and Tempered (IHT) wires with 9,000 tons capacity for suspension springs; Phase 2 expansion to 15,000 tons is underway. Utilization reached 20% in the first month with a target of 40% by year-end.
- Infrastructure (LRPC): Traction in LRPC wires (18,000 tons capacity) at the Dadri facility, catering to bridges and concrete structures. This segment is key to repositioning the company toward high-growth infrastructure pipelines.
- B2C Segment: Low carbon wire B2C sales increased from 5% in Q2 to 7% in Q3. Management targets 12-15% B2C mix next year to drive higher blended EBITDA per ton.
Company-Specific & Strategic Commentary
- Capacity Expansion: Total capacity is set to rise from 6.2 lakh tons to 7.7 lakh tons via a 60,000-ton brownfield expansion at Dadri and a 90,000-ton project at Sanand.
- Specialty Wire Recovery: Following a fire incident in the specialty wire shed (₹1.5 crore inventory loss), operations are resuming after insurance approval. Steel tire cord commercial sales are expected by Q2/Q3 FY27.
- Market Leadership: With current capacities, management claims the position of the largest wire manufacturer in India, targeting a 10% market share in the next 2-3 years.
- Operational Consolidation: Older, unviable facilities (Balaji Wires/Bansal High Carbons) now only perform job work for the listed entity and will be shut down as Dadri ramps up.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Volume Growth | 35% - 40% for FY26 | Revised upward from 30% due to strong demand and December sales run-rate. |
| Free Cash Flow | ₹350 crores (FY27) | Expected from improved working capital, channel financing, and higher margins. |
| ROCE | 25% by end of FY27 | Driven by higher capacity utilization (targeting 90%) and value-added product mix. |
| EBITDA per ton | ₹8,000 - ₹9,000 | Long-term target (1-2 years) as specialty wires like IHT/OHT and steel cord contribute 15-20% of EBITDA. |
Risks & Constraints
| Risk | Context |
|---|---|
| Labor Shortage | Early Diwali and Bihar elections caused temporary shortages in Oct/Nov, though December saw a record recovery. |
| Execution Delay | The Dadri facility ramp-up has been described as “slower than expected,” delaying the closure of older, inefficient plants. |
| Asset Utilization | A major capex cycle has kept utilization at 78%; management must maintain high sales velocity to reach the 90% efficiency target. |
Q&A Highlights
Approval Cycles & Specialty Wires
- Question: What is the status of the steel cord approval cycle following the fire? (Veenit, Investec)
- Answer: The project is delayed by 1-1.5 months; lab trials are nearly complete, and field trials will begin once the plant is back online. Commercial production is slated for Q2/Q3 FY27 (Pranav Bansal).
Taxation & Legal
- Question: What is the status of the ₹206 crore GST notice? (Kunal Sharma, Veritas)
- Answer: The demand was “unrealistic.” 98-99% of the amount has been squashed/settled, and the remainder is under appeal with no expected material financial impact (Pranav Bansal/G.D. Gujrati).
Margin Sustainability
- Question: Why hasn’t the 20% EBITDA growth reflected in PAT? (Kunal Sharma, Veritas)
- Answer: All interest and depreciation related to the new capex are now being fully charged to the P&L rather than capitalized. Future EBITDA growth will flow directly to PAT as capitalization concludes (Pranav Bansal).
Pricing Strategy
- Question: Did you sacrifice margins to gain 35% volume growth? (Deepak, Sundaram Mutual)
- Answer: No. Aggressive pricing was considered but not heavily implemented; volume growth was organic. Blended EBITDA per ton changes are strictly due to product mix (Pranav Bansal).
Key Takeaway
Bansal Wire Industries delivered a record-breaking performance in Q3 FY26, achieving its highest-ever quarterly sales volume of 121,000 metric tons (+32% YoY) and record monthly sales of 45,000 tons in December. Despite temporary labor disruptions and a minor fire incident in the specialty shed, the company is successfully pivoting toward high-margin segments, notably through the launch of IHT wires for the automotive sector. Management has effectively hit its annual free cash flow target of ₹240 crores ahead of schedule and is targeting 25% ROCE by FY27. Strategic focus remains on ramping up the Dadri and Sanand facilities to reach a 7.7 lakh ton capacity, cementing its position as India’s largest wire manufacturer. While PAT growth remains tempered by depreciation and interest from recent large-scale capex, the transition toward a higher B2C and specialty wire mix is expected to drive EBITDA per ton toward ₹9,000 in the coming years.
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