Synopsis: Bansal Wire reported mixed Q1FY27 results, but management remains confident of a stronger FY27, backed by a 20% volume growth target, expansion in specialty wires, steel cord, B2C business, and improving margins following operational normalisation.
The shares of one of India’s leading steel wire manufacturers, engaged in the production of a wide range of steel wires catering to industries such as automotive, infrastructure, power & transmission, agriculture, consumer durables, and general engineering are in the spotlight after its management reiterated its target of achieving around 20% volume growth in FY27.
With a market capitalisation of Rs. 4,862 cr, the shares of Bansal Wire Industries Ltd closed at Rs. 310.60 per share, down from its previous close of Rs. 317.00 per share. The stock has declined 25% over the past year, while delivering returns of 1.5% year-to-date, 11.5% over the last six months, and down by 7% in the past month.
Financial Performance
On the financial front, Bansal Wire Industries Ltd reported a mixed performance in Q1FY27. Revenue increased 24% YoY to Rs. 1,168 crore from Rs. 939 crore in Q1FY26. However, EBITDA declined 22% YoY to Rs. 56.4 crore from Rs. 71.8 crore, while net profit fell 48% YoY to Rs. 20.5 crore from Rs. 39.3 crore. EPS also declined 48% to Rs. 1.31 from Rs. 2.51.
Despite a temporary cost spike during the quarter, profitability improved as operations stabilised. Operating cash flow stood at Rs. 121 crore, with free cash flow of around Rs. 120 crore, reflecting strong cash generation.
Business Performance
The company’s installed production capacity currently stands at 680,000 tons. During the quarter, it secured its first trial order for the steel cord business, while approvals for IHT (Induction Heat Treatment) products progressed well and OHT (Oil Heat Treatment) commissioning is expected shortly. The B2C business continued to gain traction, contributing around 10% of total sales, supported by improving demand across end-user industries.
The management stated that Q1 FY27 was temporarily impacted by a disruption in gas supply, which affected operations and profitability during the quarter. However, operations normalised by the end of the quarter, margins recovered, and the company remains confident of delivering strong growth in FY27. Management also highlighted improving demand trends, continued market share gains, healthy customer relationships, and steady progress in its specialty businesses.
Growth Drivers
Management reiterated its target of achieving around 20% volume growth in FY27, driven by continued market share expansion and rising demand from the automotive sector. The company expects specialty wires, steel cord import substitution, scaling up of IHT and OHT capacities, expansion of its B2C brand, and new product launches to remain the key growth drivers over the coming quarters.
It plans to invest Rs. 200–250 crore annually as capital expenditure to expand its specialty wire portfolio, scale up the steel cord business, and strengthen its B2C segment. The company is also focused on improving working capital efficiency by reducing receivable days, maintaining 20–25% excess capacity to support future demand, and enhancing return on capital employed (ROCE).
Management Guidance
For FY27, the company expects around 20% volume growth, with EBITDA growth broadly in line with volume expansion. Management expects EBITDA per kg to normalise at Rs. 7–8, capacity utilisation to exceed 85%, and IHT facilities to reach optimal utilisation during the year. Specialty products are expected to generate EBITDA of Rs. 10–20 per kg, while operating cash flows are projected to strengthen further alongside planned annual capex of Rs. 200–250 crore.
Despite a weak start to FY27 due to temporary operational disruptions, Bansal Wire appears well positioned for a stronger second half. With management targeting 20% volume growth, expanding its specialty wire portfolio, scaling up steel cord, IHT and OHT businesses, and increasing B2C penetration, the company expects margins and profitability to improve. The successful execution of these growth initiatives will be key to determining whether Bansal Wire can deliver a strong FY27.
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