Bansal Wire Industries Q2 FY26 earnings call
In brief
Q2 FY26 revenue +27% YoY at ₹1,055 cr; raises FY26 volume guidance to 30-40%, commits to 25% ROC by FY27
- Management's tone
- Confident
- What was said
- Leaned positive
- Guidance
- Guidance raised
- Analyst pushback
- Medium
- Stock, next session
- −4.66% (Nifty 50 −0.64%)
- Q2 FY26 revenue ₹1,055 cr (+27% YoY), EBITDA ₹81.58 cr (+20%); PAT fell 4.3% YoY to ₹38.3 cr as Dadri depreciation and interest fully capitalised.
- Targets 25% ROC by FY27 and ₹600 cr cumulative positive cash flow over FY26-FY27; ₹150 cr free cash flow already booked in H1 FY26.
- Raised FY26 outlook to 30-40% volume growth and >20% EBITDA growth, well above the ~10% EBITDA growth feared at the start of the year.
- Steel cord: two of three major tyre customers have cleared sample approvals; commercialisation still targeted for mid-FY27.
- Dropped stainless-steel backward integration plan; Sanand investment of ~₹150 cr to add 90,000-100,000 tons of wire capacity.
An AI read of the company's transcript · the filing
The numbers
The quarter, Q2 FY26
| This quarter | A year ago | Last quarter | Margin | |
|---|---|---|---|---|
| Revenue | ₹1,055 cr | +27.9% | +12.4% | |
| EBITDA (excl. other income) | ₹76.8 cr | +20.3% | +6.8% | 7.3% (7.7% a year ago) |
| Net profit | ₹38.3 cr | −3.3% | −2.4% | 3.6% (4.8% a year ago) |
| EPS (₹) | ₹2.46 | −13.7% | −2.0% |
From the company's filed results for the quarter ended 30 Sept 2025 (consolidated), not from the call. EBITDA here excludes other income, so it can differ from the figure management quotes.
Where management's figures differ from the filing
- EBITDA Q2 FY26 (incl. other income as stated): said ₹81.58 cr (+20% YoY); filed ₹76.78 cr (excl. other income), margin 7.3%. Management's stated EBITDA includes other income of ~₹4.81 cr; filed EBITDA excludes other income, defining EBITDA strictly as PBT + finance costs + depreciation − other income.
What moved the numbers, as management explained it
- Volume grew 27% YoY to 1.14 lakh tons (highest ever), the main driver of revenue growth, aided by Dadri stabilising and a 50% QoQ volume jump from Dadri.
- PAT fell 4.3% YoY despite EBITDA growth because Dadri capex was 100% capitalised, pushing depreciation roughly 3x YoY; cash profit still rose 17% to ₹56 cr. (accounting)
- Other expenses (job work, freight, power, fuel) and employee cost rose sharply as production shifted from older job-work entities into own Dadri facility.
- EBITDA per ton held near ₹7,100 (not the sub-7,000 feared) as premiumisation in non-replaceable products offset the planned mix shift toward lower-margin low-carbon wire.
- B2C low-carbon ramp-up contributed ~5% of revenue at higher EBITDA per ton than B2B, helping blended margin even as mix shifted.
- Finance costs rose as Dadri capex was no longer capitalised — full-year interest/depreciation impact in P&L going forward.
The numbers management led with
- Free cash flow generated in H1 FY26: Rs 150 cr
- Cumulative positive cash flow target (FY26+FY27): Rs 600 cr
- ROC target by 2027: 25% ROC
- Total installed capacity: 6,18,000 tons (4,20,000 at Dadri); rising to ~6,80,000 tons by end Q3 FY26
- FY26 volume growth guidance: 30-40%
- FY26 EBITDA growth guidance: 20%+
Guidance
Guidance on this call
| What | For | What management said | Filed |
|---|---|---|---|
| FY26 volume growth | FY26 | now looking at about 30% to 40% volume growth within this year | — |
| FY26 EBITDA growth | FY26 | more than 20% EBITDA growth as well | 14.4%, below the range |
| ROC target | FY27 | set a target for ourselves to achieving 25% ROC by 2027 | — |
| Cumulative positive cash flow | FY26-FY27 | (+600) crores of positive cash flow within this year and next year combined | — |
| Sanand greenfield capex | FY26-FY27 | In Sanand itself, we will be investing about Rs. 150 crores apart from the land | — |
| Annual capex envelope for 20-25% growth | FY26 | to grow at 20%-25%, I need maybe 1.5 lakhs in the year, which should be done within 150-200 crores | — |
| Long-term revenue/EBITDA growth | FY26 | Our long-term thought process to grow at 20%-25% every year remains intact | 18.6%, below the range |
| Speciality wire EBITDA margin target | — | we would want to look at about 20% to 25% EBITDA [in speciality wire] | — |
| B2C volume growth | — | it will grow at more than 30%-35% every year for us now | — |
| EBITDA per ton to double digits | FY29-FY30 | EBITDA per ton to maybe go to double digits within the next 3 to 4 years | — |
| Low carbon share of total volume | — | we are targeting 60% share of low carbon wire business | — |
| Capacity utilisation sweet spot | — | we would want to operate at 80%-85% capacity utilization | — |
| Steel cord commercialisation | FY27 | commercialize our product by mid of next year | — |
| IHT wire commercialisation | H2 FY26 | expect commercialization of this product within the second half of this year | — |
Filed figures are summed from the company's own quarterly results for the whole period (EBITDA excludes other income); where one sits against what was guided is arithmetic, not a judgement.
What changed since the Fri 19 Sept 2025 call
| What | On the Fri 19 Sept 2025 call | On this call |
|---|---|---|
| Volume / EBITDA growth guidance for FY26 (raised) | Management aspired to 20-25% growth; earlier feared FY26 EBITDA growth could be only ~10% as product mix shifted to low-carbon | 30-40% volume growth and >20% EBITDA growth targeted for FY26 |
| Capital allocation priority (restated) | Maintain disciplined capital allocation balancing growth capex and shareholder returns | Doubled down on core business; ₹600 cr positive cash flow over FY26-FY27; no debt for 20-25% growth |
| Stainless steel backward integration (not repeated) | Implied future capex direction at the time of listing | Cancelled/deferred; supply chain now adequate, focus back on core stainless wire |
| Speciality wire portfolio (raised) | Speciality wire vertical launched (tyre bead, hose wire, steel cord) | Added induction-hardened & tempered wire (IHT) with 9,000 tons capacity; steel cord has 20,000 tons capacity and 2 of 3 sample approvals |
| 25% ROC target (new) | Not stated as a specific target | 25% ROC target set for FY27 (within next year) |
| ESG / sustainability agenda (not repeated) | Featured priority: acid-free pickling, ZLD plant, 7 MW rooftop solar at Dadri | Not discussed on this call |
| Dadri facility status (restated) | Dadri fully operational post ₹650 cr investment; total capacity 6 lakh tons | Dadri 4.20 lakh tons (overall 6.18 lakh tons), still stabilising at 35-45% utilisation, volumes up ~50% QoQ |
| Western India expansion (held) | Priority to expand geographic footprint beyond Dadri into western India | Sanand ₹150 cr investment for 90,000-100,000 tons of wire capacity outlined |
Guided on earlier calls, and what was filed
| What | For | Guided | Filed |
|---|---|---|---|
| EBITDA growth | FY26 | 10% (on the Q1 FY26 call) | 14.4%, above the figure guided |
Filed figures are summed from the company's own quarterly results for the whole period (EBITDA excludes other income); where one sits against what was guided is arithmetic, not a judgement.
The business
By business
Speciality wire (steel cord + IHT)
Steel cord: 2 of 3 tyre majors cleared sample approvals, commercialisation by mid-FY27. IHT wire capacity of 9,000 tons launched with H2 FY26 commercialisation. Target 20-25% segment EBITDA.
Steel cord capacity 20,000 tons · IHT wire capacity 9,000 tons · Specialty wire EBITDA target 20-25%
Outlook: Commercialisation of steel cord by mid next year; speciality wire EBITDA per ton to lift blended margins from FY27
B2C (low-carbon applications)
B2C contributed ~5% of Q2 revenue/volume after 5 years of development; fetches ~50% higher EBITDA per ton than B2B low-carbon; targets nearly double B2B EBITDA per ton.
B2C ~5% of Q2 revenue · EBITDA per ton ~50% above B2B low-carbon
Outlook: Expected to grow >30-35% per year going forward
Low carbon wire (core)
Volume share at 50-55% in Q2, targeted at 60% as it delivers best ROC; serves power & cable, agriculture, fencing, poultry; near 90% capacity utilisation in cable armour product.
Cable armour capacity utilisation ~90% · Low-carbon volume share 50-55% in Q2
Outlook: Target 60% volume share; further growth capex every quarter
Stainless steel wire
Stainless sales up >20% QoQ in Q2 after supply-chain streamlining; backward-integration project cancelled; growth funded within existing capex envelope.
Stainless steel sales up >20% QoQ in Q2
Outlook: Backward integration dropped; will grow in core stainless wire only
Dadri facility & overall capacity
Dadri sales volume up ~50% QoQ; capacity 4.20 lakh tons at Dadri, 6.18 lakh tons overall; quarter utilisation 74%, Dadri 35% (45% by quarter-end). 60,000 tons addition underway this quarter, lifting total to 6.8 lakh tons.
Total installed capacity 6,18,000 tons · Dadri capacity 4,20,000 tons · Overall utilisation 74% · Dadri utilisation 35% (45% end-Q2) · Q2 volume 114,000 tons
Outlook: Wind down other two entities in 4-6 quarters; aim for 80-85% blended utilisation
Balance sheet, capex and funding
- Capex envelope reset: ₹150-250 cr per year, fully fundable from internal cash accruals; no incremental debt required for 20-25% growth.; capex
- Sanand greenfield: ~₹150 cr for 90,000-100,000 tons of wire capacity (land already acquired).; capex
- Debt level reduced YoY in Q2 (per management); commitment not to increase borrowings for organic growth, though absolute debt reduction not guaranteed.; debt
- H1 FY26 free cash flow from operations: ~₹150 cr; cumulative FY26-FY27 cash flow target ₹600 cr to fund growth and lift ROC.; cash
- Working capital: inventory days improved, receivables steady, payables extended; channel financing to be scaled up over next two quarters and more meaningfully next year.; working_capital
- Dadri fire incident: ~₹6 cr of finished-goods inventory impacted in steel cord shed; production restart within a week, no other P&L impact.; one_off
The industry, as management sees it
Management views the domestic steel wire industry as highly supportive through H2, citing sustained demand from infrastructure, automotive and industrial sectors coupled with India's expanding manufacturing footprint as drivers of volume and pricing gains.
Risks management named
- PAT growth lagging revenue growth due to ~3x rise in depreciation from full Dadri capitalization
- Low carbon mix ramp to 60% may keep EBITDA per ton flat in next two quarters before rising
- Fire incident at Dadri speciality warehouse (steel cord shed) caused ~Rs 6 cr finished goods loss; plant restarting
- Wind-down of two older entities (running at FY25 run-rate of 70,000 tons) will take 4-6 quarters and inflate near-term employee/other costs
Q&A
Q&A was dominated by discussions of steel cord commercialization timeline, the rationale for dropping backward integration, EBITDA per ton trajectory through the low carbon mix shift, and the Dadri plant ramp. Pushback was strongest from DAM Capital and Dalal & Broacha on cost inflation and ROC mechanics, while Anand Rathi and Asian Market probed capacity buildout, working capital and B2C. Management was largely direct with specific numbers; the only notable evasions were on Bansal Aradhya financials and whether existing debt will be actively repaid. The fire incident at Dadri was disclosed proactively without analyst prompting.
Not answered directly
- Active debt reduction commitment
- Bansal Aradhya financial details
Asked for a number, answered without one
- Exact loss from Dadri fire: Confirmed ~₹6 cr of finished-goods inventory in the speciality warehouse area; exact loss still being estimated.
- Sanand plant P&L impact: Said ₹150 cr investment at Sanand for 90,000-100,000 tons capacity; did not quantify EBITDA or margin contribution.
- EBITDA per ton glide path: Said per-ton should remain constant and rise only once speciality wire kicks in; declined a specific number for FY27-28.
- Market share: Gave an indicative 7-8% share estimate based on 4.2-4.5 lakh tons of expected volumes vs ~7 lakh ton market; said numbers are not exact.
Every question, with its answer
1. Steel cord approvals
Prateek Singh, DAM Capital
Question. On steel cord approvals — when you say sample approvals received, has the customer cleared the lab sample and progressed to field trial, or are some still under evaluation? How does the process work?
Answer, Pranav Bansal, Managing Director & CEO. The approval process is in two phases: first, lab/sample approval where the customer runs extensive testing of parameters; second, field trial where they make a tyre from supplied material and run it for ~25,000 km. We are in discussion with three major tyre companies — two have cleared the sample (lab) approval and we have entered the second stage, supplying quantities for field trial. The third is still evaluating samples.
Follow-up. How long does the field-trial phase typically take?
Answer. Generally 7-8 months, but depends on factors like commercial vs passenger vehicle usage, taxi vs private. We are tracking ahead of our mid-2026 commercialization target by about a month or two.
2. EBITDA per ton & cost analysis
Prateek Singh, DAM Capital
Question. Selling prices and gross margins rose QoQ but EBITDA fell — driven by employee costs (up ~Rs 500/ton) and other expenses (up ~Rs 1,500/ton). What caused the sharp rise in other expenses (job work, freight, power) and is employee cost stable given likely hiring?
Answer, Pranav Bansal, Managing Director & CEO. EBITDA per ton has been consistent — we expected a decline below Rs 7,011 but did not see it because of premiumization on products where Bansal Wire is non-replaceable. Employee costs are up roughly in proportion with volume and will keep rising as volume grows. Other expenses reflect shift of production from older entities to Dadri; this is a reclassification from job work (other expenses) to in-house labor costs.
Partly answered.
3. Backward integration & CAPEX
Aditya Bhartia, Investec
Question. On backward integration into stainless steel rods being dropped — what is the rationale and how does this reshape CAPEX over the next 2 years?
Answer, Pranav Bansal, Managing Director & CEO. Backward integration was incompatible with the Rs 600 cr cash flow and 25% ROC targets; it also moved us away from our 85-year core competency. Dropping it removes major CAPEX and finance cost from the balance sheet. To grow at 20-25% in the existing portfolio we need only Rs 150-250 cr/year, which is fully fundable from internal accruals — so the balance sheet will not need further leveraging.
4. EBITDA growth confidence
Aditya Bhartia, Investec
Question. Earlier you feared EBITDA per ton could drop sharply and guided EBITDA growth at ~10% for the year. Now you sound more confident. What changed — strategy, product mix focus, or macro?
Answer, Pranav Bansal, Managing Director & CEO. We always try to be conservative when committing numbers. Additionally, in H1 we shifted focus to higher-ROC businesses — B2C, low carbon (which turns out to be the best ROC business despite lower per-ton EBITDA), and other higher-ROC B2B lines. So it is a mix of intentional product mix recalibration and conservative commitments.
5. Operating leverage & growth target
Aditya Bhartia, Investec
Question. At 74% capacity utilization ramping up further, should we model operating leverage gains? And is the 20-25% growth target on revenue or EBITDA?
Answer, Pranav Bansal, Managing Director & CEO. There will be some operating leverage, but we do not want to factor that into guidance because of demand/margin uncertainty. EBITDA per ton should stay flat this year, but from next year the mix shift to speciality wire will gradually lift it. The 20-25% growth target applies to both revenue and absolute EBITDA.
6. Profitability gap & debt
Yash Sharma, Veritas Research & Advisors
Question. Revenue and volume are strong but profitability is not — is that driven by interest/depreciation? Debt also rose QoQ. Any technical reason like lower realization?
Answer, Pranav Bansal, Managing Director & CEO. Debt has actually reduced YoY (though marginally). PAT is lagging because depreciation and interest have risen — Dadri is now 100% capitalized, so depreciation is up ~3x. That is why we now highlight cash profit (Rs 56 cr in Q2, +17% YoY) as a better indicator of underlying performance.
7. Market share & segment growth
Yash Sharma, Veritas Research & Advisors
Question. What is the market share trajectory YoY and the volume growth split by segment, especially on the speciality wire side?
Answer, Pranav Bansal, Managing Director & CEO. Market size is ~7 lakh tons; we are targeting 4.2-4.5 lakh tons implying ~7-8% market share. We have already recalibrated volume mix in H1, which changed blended EBITDA per ton, but per-product EBITDA is intact. Speciality wire (20,000 tons steel cord + 9,000 tons IHT = 29,000 tons built) addresses a 3 lakh+ ton market and will start contributing from H2 next year.
Partly answered.
8. EBITDA per ton guidance
Prakhar, Anand Rathi Share & Stock Brokers
Question. Current EBITDA per ton is around Rs 6,700 — what is the target for this year and FY27-28?
Answer, Pranav Bansal, Managing Director & CEO. EBITDA per ton in Q2 is ~Rs 7,100, not Rs 6,700. We initially expected per-ton EBITDA to fall due to mix change, but that did not happen because Bansal Wire is non-replaceable in several products and we were able to pass through margins while still growing volume (~40% in H1). We do not see per-ton EBITDA rising further this year; with speciality wire from next year, per-ton EBITDA should start moving up.
9. Installed capacity mix
Prakhar, Anand Rathi Share & Stock Brokers
Question. What is the expected installed capacity split across high carbon, low carbon, speciality and stainless?
Answer, Pranav Bansal, Managing Director & CEO. Total installed capacity is 6.2 lakh tons including the 60,000 tons added last quarter; another 60,000 tons is underway, taking capacity to ~6.8 lakh tons by end of Q3. We want to operate at 80-85% utilization. Broadly, the target mix is 60% low carbon, 25% high carbon, 15% stainless — but it varies with demand.
10. Speciality wire EBITDA per ton
Prakhar, Anand Rathi Share & Stock Brokers
Question. What is the average EBITDA per ton across bead wire, steel cord and IHT?
Answer, Pranav Bansal, Managing Director & CEO. For speciality wire as a business (steel cord + IHT), the target is 20-25% EBITDA margin — this can differ between products. Bead wire sits within high carbon wire and carries the same EBITDA per ton as other high carbon products.
11. Sanand CAPEX & stainless strategy
Akash, Dalal & Broacha
Question. Backward integration for stainless steel is fully cancelled — confirming only the Rs 150 cr stainless steel wire investment remains, not rods?
Answer, Pranav Bansal, Managing Director & CEO. Correct. Backward integration would have hurt return ratios and forced leverage; we want surplus cash for steel cord investments. Separately, supply chain for stainless steel raw material has been streamlined in the last 6 months — stainless steel sales grew 20%+ QoQ. So we no longer see the original constraint that motivated backward integration.
12. Double-digit EBITDA margin timeline
Akash, Dalal & Broacha
Question. Earlier the goal of these measures was double-digit EBITDA margin within 2-3 years — by when is that achievable now that focus is on existing business and speciality wire?
Answer, Pranav Bansal, Managing Director & CEO. Double-digit EBITDA per ton margin is a 3-4 year target. Dropping backward integration has freed up management bandwidth for the core business, and speciality wire commercialization may even be 1-2 months ahead of plan. ROC of 25% by next year is a more important milestone than absolute margin level.
13. Path to 25% ROC
Akash, Dalal & Broacha
Question. How will you achieve 25% ROC — through debt reduction funded by improved cash flow?
Answer, Pranav Bansal, Managing Director & CEO. We have a Rs 600 cr cash flow target; Rs 150 cr already done in H1, with room to do more in the next 6 quarters. With investments recalibrated to Rs 200-300 cr over 2 years, there is enough headroom. We are also working with vendors and customers to reduce inventory and receivables. 25% ROC remains on track.
14. Debt reduction plan
Akash, Dalal & Broacha
Question. Will the cash accrual be used to retire existing borrowings?
Answer, Pranav Bansal, Managing Director & CEO. What we can guarantee: for the 20-25% growth requirement, we will not need incremental debt. Whether we can actively reduce existing debt — six quarters is still a long period and there could be changes, so I cannot commit to that today.
Not answered directly.
15. Interest & depreciation trajectory
Akash, Dalal & Broacha
Question. Interest and depreciation both tripled YoY on Dadri capitalization — what is the FY26 shape and the next 2-year trajectory?
Answer, Pranav Bansal, Managing Director & CEO. Depreciation rose because the prior comparison was ex-Dadri and other entities were consolidated only by end of Q2/Q3 last year. Going forward we do not plan another Dadri-scale CAPEX every 1-2 years. To grow 20-25% we need ~Rs 150-200 cr/year of investment — we should not see another 3x step-up.
16. Low carbon volume share target
Mayank Bhandari, Asian Market Securities
Question. Is 60% of total revenue being targeted from low carbon?
Answer, Pranav Bansal, Managing Director & CEO. 60% is a volume target, not revenue. Currently we are at 50-55% in Q2; pushing to 60% is needed to achieve the blended 25% ROC because low carbon has the best return ratios in the portfolio.
17. Low carbon end-markets
Mayank Bhandari, Asian Market Securities
Question. Where does low carbon wire go and how fast is that market growing?
Answer, Pranav Bansal, Managing Director & CEO. Three to four end-segments. Main: power and cable industry (cable armour) where we run ~90% utilization and are adding capacity every quarter. Second: B2C for agriculture, fencing and poultry cages — strong traction in the last 2 years. B2C has grown from negligible to 5% of total volume.
18. B2C size
Mayank Bhandari, Asian Market Securities
Question. How big is B2C for you today?
Answer, Pranav Bansal, Managing Director & CEO. B2C contributes ~5% of total volume currently, and is all low carbon. We expect it to grow at 30-35% per year from here.
19. Dadri utilization
Mayank Bhandari, Asian Market Securities
Question. What is Dadri capacity utilization currently?
Answer, Pranav Bansal, Managing Director & CEO. Dadri ran at ~35% for the full Q2 and reached 45% by end of quarter, on the expanded capacity base.
20. Working capital & channel financing
Mayank Bhandari, Asian Market Securities
Question. Working capital has improved on inventory days, but receivables are flat and payables up. Are you leveraging channel financing?
Answer, Pranav Bansal, Managing Director & CEO. Channel financing is not meaningfully in use yet — we plan to scale it over the next two quarters and meaningfully from next year. Independently, we are also reducing absolute receivable days through follow-ups.
21. Exports
Mayank Bhandari, Asian Market Securities
Question. What was the export contribution this quarter?
Answer, Pranav Bansal, Managing Director & CEO. About 9%.
22. Dadri fire incident
Prakhar, Anand Rathi Share & Stock Brokers
Question. On the recent fire incident at Dadri — what was the impact on Q3 production volume and the estimated financial loss?
Answer, Pranav Bansal, Managing Director & CEO. Incident was in the speciality warehouse area (steel cord shed). No significant operational impact; finished goods inventory loss was ~Rs 6 cr and is still being estimated. No other impact on numbers; approval process is on track; plant restarts next week.
23. B2C EBITDA per ton
Prakhar, Anand Rathi Share & Stock Brokers
Question. What is the EBITDA per ton in the B2C business?
Answer, Pranav Bansal, Managing Director & CEO. Almost 50% higher than B2B in low carbon today; marketing initiatives are targeting nearly double the B2B EBITDA per ton in B2C going forward.
24. EBITDA per ton trajectory
Prateek Singh, DAM Capital
Question. Is mix rationalization now largely behind us — so from Q3 EBITDA per ton should improve on a like-to-like basis, or are a few more quarters of softness likely?
Answer, Pranav Bansal, Managing Director & CEO. Improvement is more likely from next year, not the next two quarters. We are pushing low carbon to 60% of volume — a lower per-ton business — so per-ton EBITDA may still see small pressure for two quarters. That is why we are guiding 20-25% EBITDA growth vs 30-40% volume growth. From next year per-ton EBITDA should hold, and in FY28 EBITDA growth should exceed volume growth.
Follow-up. So when EBITDA growth surpasses volume growth, you mean FY28?
Answer. Yes, FY28 should be the year EBITDA growth exceeds volume growth.
25. Cost reclassification
Prateek Singh, DAM Capital
Question. On a QOQ basis, employee cost was up 26% and other expenses up 30% on only 10% volume growth — was there a one-off in Q2 and does employee cost peak here?
Answer, Pranav Bansal, Managing Director & CEO. This is a reclassification rather than a true cost increase. Earlier Dadri was under-utilized and we ran job work at the two older entities; now that Dadri is stable we are shifting production in-house. So other expenses (job work) are being reclassified into employee benefit expenses as the in-house labor cost rises. Trend will continue until the older entities are wound down.
26. Wind-down of older entities
Prateek Singh, DAM Capital
Question. The two older entities did ~70,000 tons last year — how much in H1 this year and when do you plan to close them?
Answer, Pranav Bansal, Managing Director & CEO. H1 run rate is similar to last year but from the last month of Q2 we have started shifting again. This quarter should see significant Dadri growth and corresponding reduction at the older entities; full wind-up should take 4-6 quarters.
27. PAT growth vs revenue
Dhruv Agrawal, Swastika Investment
Question. Top-line grew 21.4% — why is PAT percentage down, when PAT should grow much more?
Answer, Pranav Bansal, Managing Director & CEO. PAT growth lags revenue because of the higher depreciation from full Dadri capitalization. Cash profit (which strips out the depreciation effect) grew 17% YoY and is the more relevant indicator of underlying earnings power.
28. Group company Bansal Aradhya
Dhruv Agrawal, Swastika Investment
Question. On group company Bansal Aradhya in South India — what is its product mix, revenue contribution, EBITDA and net profit margins?
Answer, Pranav Bansal, Managing Director & CEO. Bansal Aradhya does ~25,000-30,000 tons vs Bansal Wire's 4,50,000 tons — under 4-5% of company size. Limited product overlap — mainly bead wire, which they sell in South India while we sell only in North India. Bead wire is also not a major product for us.
Not answered directly.
29. Sanand investment status
Dhruv Agrawal, Swastika Investment
Question. Status of the new Gujarat (Sanand) investment — land acquired, production start date, and impact on top line/EBITDA/PAT?
Answer, Pranav Bansal, Managing Director & CEO. To support 20-25% annual growth we plan Rs 150-250 cr of investment per year. At Sanand alone we will invest ~Rs 150 cr (excluding land) for 90,000-1,00,000 tons of wire capacity. Overall target remains 20-25% volume growth.
Partly answered.
What was said
Topic by topic, in the order it was spoken
Q2 Performance & Strategic Reset · Pranav Bansal (MD & CEO)
- 5th consecutive quarter of higher revenue, volume and EBITDA post-listing; highest ever quarterly numbers delivered despite heavy monsoon and labor shortages
- Defining first half for the company marked by a complete pivot toward cash flow positivity and higher ROC; recalibrated lower-ROC investments
- Target set: 25% ROC by 2027 and Rs 600 cr positive cash flow across FY26+FY27; H1 already generated Rs 150 cr free cash flow from operations
- Shift to a self-sustaining model: reinvest free cash, reduce market dependency
Steel Cord, B2C & IHT Progress · Pranav Bansal (MD & CEO)
- Steel cord: 2 of 3 major tyre companies have cleared sample (lab) approvals; entered field-trial phase with commercialization targeted mid-2026
- B2C segment now 5% of total revenue with better margins than B2B; grew from negligible to 5% in ~2-3 years; product worked on for 5 years
- New induction hardened and tempered (IHT) wire launched under speciality wire division with 9,000 ton capacity; used in automotive suspension and valve springs
- Commercialization of IHT expected in H2 FY26; already received encouraging customer response
Capacity, Dadri & Volume Outlook · Pranav Bansal (MD & CEO)
- Total installed capacity 6,18,000 tons including 4,20,000 tons at Dadri; capacity utilization 74% in Q2
- Dadri sales up ~50% QoQ as facility stabilizes; will be the consolidated production base going forward
- Long-term growth target unchanged at 20-25% annually but now paired with ROC and cash flow discipline
- Looking at 30-40% volume growth in FY26 and 20%+ EBITDA growth — better than Q1 guidance
Q2 & H1 FY26 Financial Highlights · Ghanshyam Das Gujrati (CFO)
- Q2 revenue Rs 1,055 cr (+27% YoY); EBITDA Rs 81.58 cr (+20% YoY); PAT Rs 38.3 cr (-4.3% YoY) due to higher depreciation from full Dadri capitalization
- Cash profit for Q2 up 17% YoY to Rs 56 cr; viewed as more relevant given rising depreciation
- H1 revenue Rs 1,994 cr (+21% YoY); EBITDA Rs 156 cr (+19.7%); PAT Rs 77.6 cr (+8.4%); H1 cash profit Rs 106 cr (+24%)
- Volume at 1,14,000 tons in Q2 vs 1,04,000 tons in Q1; exports contributed 9.1% of revenue
In their words
we have set a target for ourselves to achieving 25% ROC by 2027 and (+600) crores of positive cash flow within this year and next year combined. Of this, the first step we have already taken this first half by realizing almost 150 crores of free cash flow from operations
we are confident that we will be able to achieve better numbers than our guidance in Q1. We are now looking at about 30% to 40% volume growth within this year and more than 20% EBITDA growth as well
When we actually worked on it, we realized that there were a lot of areas in which Bansal Wire was just not replaceable. So, even after increasing our margins in a lot of businesses, we were still able to grow at a certain level of volume
To check next time
What management committed to on this call, or the dates they gave.
- Q3 FY26 completion of 60,000-ton capacity addition taking total to 6.8 lakh tons
- H2 FY26 commercialisation of induction-hardened & tempered (IHT) wire
- Progress of steel cord field trials with two tyre majors (7-8 month cycle)
- Dadri volume ramp toward closure of other two entities over next 4-6 quarters
- Free cash flow progress toward ₹600 cr FY26-FY27 target after ₹150 cr in H1
- Channel financing rollout to bring down receivable days and Sanand capex execution
Transcript
We have not transcribed this call's recording. Read the company's transcript (PDF).
The stock after the call
| After the call | Close | Stock | Nifty 50 |
|---|---|---|---|
| Next session Tue 4 Nov 2025 | ₹308.00 | −4.66% | −0.64% |
| 5 sessions Tue 11 Nov 2025 | ₹312.95 | −3.13% | −0.27% |
| 20 sessions Tue 2 Dec 2025 | ₹317.95 | −1.58% | +1.04% |
From the close of Mon 3 Nov 2025, ₹323.05: the close before the call day (the call's time is not on file). Adjusted daily closes; the move includes everything else that happened in those sessions.