Bansal Wire Industries Q4 FY26 earnings call
In brief
Bansal Wire posts Q4 revenue ₹1,136 cr (+21% YoY); commits to 20% growth in FY27 once gas/geopolitical disruption normalizes.
- Management's tone
- Cautious
- What was said
- Even-handed
- Guidance
- Guidance held
- Analyst pushback
- Medium
- Stock, next session
- −3.01% (Nifty 50 −0.74%)
- FY26 cash flow of ₹333 cr exceeded target of ₹250 cr; on track for ₹600 cr total by 2027.
- FY26 volume grew 33% YoY to 4.58 lakh metric tons; revenue +19% to ₹4,160 cr; EBITDA +17% to ₹325 cr.
- Q4 March production cut to 35% from gas/geopolitical disruption; blended gas prices still ~50% higher in Q1.
- Steel Cords first trial order expected from top four tire companies in India; first commercial output may begin in H2 FY27.
- Capacity at ~6.8 lakh tons to expand to 8-8.6 lakh tons by end FY27; FY27 CAPEX guided at ₹150-200 cr.
An AI read of the company's transcript · the filing
The numbers
The quarter, Q4 FY26
| This quarter | A year ago | Last quarter | Margin | |
|---|---|---|---|---|
| Revenue | ₹1,136 cr | +20.9% | +10.4% | |
| EBITDA (excl. other income) | ₹75 cr | +4.2% | −10.2% | 6.6% (7.7% a year ago) |
| Net profit | ₹40.1 cr | +21.0% | −7.4% | 3.5% (3.5% a year ago) |
| EPS (₹) | ₹2.56 | +20.8% | −7.2% |
From the company's filed results for the quarter ended 31 Mar 2026 (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
- Q4 EBITDA: said ₹80 cr, margin 7%; filed ₹74.99 cr (excl. other income), margin 6.6%. Stated figure likely includes ₹4 cr other income; filed EBITDA excludes it.
What moved the numbers, as management explained it
- Q4 EBITDA per ton compressed by ₹4,000-5,000/ton gas cost spike absorbed on 30-40 day order book during last 15 days of March.
- March production cut to 35% on gas supply disruption triggered by Iran-Israel geopolitical tensions — a one-off. (one-off)
- FY26 volume +33% YoY to record 4.58 lakh tons, supported by 1.2 lakh ton capacity addition at Dadri and broad-based demand.
- Q4 revenue +21% YoY far outpaced EBITDA growth on cost-led margin compression in late March.
- Product mix stable: low carbon ~55%, high carbon ~25%, stainless ~20%, with IHT Wire and Steel Cords ramping.
The numbers management led with
- FY26 volumes: 4.58 lakh metric tons (+33% YoY); highest annual sales volume
- Operating cash flow: Rs 333 crore in FY26 (vs target Rs 250 crore); Rs 600 crore target by 2027
- Capacity target FY27: 8 lakh tons by FY27-end (from 6.8 lakh currently); Sanand to add 0.9 lakh tons by end FY28
- Annual capex: Rs 150-200 crore annually for next 2-3 years
- Steel Cords total investment: Rs 2,000-2,500 crore over 5-7 years for 2 lakh tons capacity
Guidance
Guidance on this call
| What | For | What management said |
|---|---|---|
| 20% growth | FY27 | 20% volume growth for FY27 once conditions normalize |
| 20% EBITDA growth | FY27 | 20% EBITDA growth in line with volume growth once normalized |
| FY27 CAPEX | FY27 | CAPEX guided at ₹150-200 cr for FY27 (60-70% of cash flows) |
| Total cash flow target | FY27 | ₹600 cr total cumulative cash flow target by 2027 |
| Capacity by end FY27 | FY27 | Capacity to reach 8 lakh tons, or 8.5-8.6 lakh with Sanand, by end FY27 |
| Capacity utilization FY27 | FY27 | Targeting 70-85% capacity utilization for best return ratios in FY27 |
| Long-term annual growth | — | Long-term goal of 20-25% growth each year (volume and EBITDA) |
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 |
| FY26 EBITDA growth | FY26 | at least 20% (on the Q2 FY26 call) | 14.4%, below the range |
| Long-term revenue/EBITDA growth | FY26 | 20–25% (on the Q2 FY26 call) | 18.6%, below the range |
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
Balance sheet, capex and funding
- FY26 cash flow of ₹333 cr generated; tracking to ₹600 cr total by 2027.
- Capital work-in-progress of ₹213 cr covers 60,000 tons installed-but-not-commissioned and ongoing Dadri expansion.
- FY27 CAPEX guided at ₹150-200 cr (60-70% of cash flows).
- FY26 capacity utilization at 67-68% (overall); FY27 target range 70-85%.
- Payable days rose from purchase invoice discounting facility; may extend further as working capital days reduced.
- Backward integration project at Sanand (90,000 tons) deferred; balance 50% land to be sold.
The industry, as management sees it
Automotive segment remains resilient and is the only sector showing growth. Consumer durable and infrastructure segments are sluggish due to steel price increases and geopolitical uncertainty. Situation is improving daily but near-term demand visibility remains limited. Management expects demand to normalise before pursuing 20% growth trajectory.
Risks management named
- Gas prices remain elevated 50-300% above normal; blended escalation ~50% in Q1 FY27
- Demand sluggish across non-auto segments (consumer durables, infra) due to steel price hikes
- Steel Cords market entry barriers may erode if major competitors (Tata Steel) enter
- Working capital days increasing due to inverse discounting; interest costs to rise
Q&A
Q&A dominated by three themes: (1) Q1 FY27 gas disruption and demand softness—analysts pressed hard for Q1 EBITDA quantification but MD declined repeatedly, citing dynamic conditions, only confirming April EBITDA per ton at Rs 1,500-2,500 for the order-book lag window before recovery; (2) Steel Cords timeline—multiple analysts (Parthiv, Deepak, Poojan) probed the trial order, customer identity, and capacity ramp, with management confirming imminent trial order from a top-4 OEM after Phase-II waiver, and 2 lakh tons / Rs 2,000-2,500 crore investment plan unchanged; (3) working capital and capex details—Deepak and Kunal probed payables spike (inverse discounting), CWIP composition, and FY27 capacity trajectory (6.8 → 8 lakh tons by FY27-end). One notable deflection: MD refused to break out EBITDA contribution by product stream, citing blended EBITDA per ton as the management KPI.
Not answered directly
- EBITDA contribution by product stream (low/high carbon/stainless)
- Q1 FY27 exact EBITDA impact quantification
Asked for a number, answered without one
- Q1 FY27 volume disruption: Said volumes were cut 35% in March, now back at 80-85%; called quantification difficult as situation is dynamic.
- Steel Cords first order quantum: Said it will be first trial order from top four tire companies; further quantum and customer detail not yet specified.
- EBITDA contribution by product: Said they would only show blended EBITDA per ton, not EBITDA split by product.
Every question, with its answer
1. Q1 Volume Outlook
Parthiv Jonsa, Anand Rathi
Question. You stated the year has started subdued. Can you quantify the gas availability issue and volume disruption for Q1 FY27?
Answer, Pranav Bansal, MD & CEO. Q1 started with volumes cut 35% in April, now recovering to 80-85%. Demand is also weak except automotive. It is difficult to quantify. Once we normalise, we still expect 20% growth.
Follow-up. Despite volume loss, steel prices have risen 10-15% post-year-start. Will that support revenue despite volume loss?
Answer. Steel prices can support revenue but won't translate to real earnings. Our business is driven by volumes and EBITDA per ton. At lower base, our cost is also higher so EBITDA per ton will take a hit.
Not answered directly.
2. Steel Cords Timeline
Parthiv Jonsa, Anand Rathi
Question. Steel Cords timeline: you mentioned trial order. What is the quantum, which customer, and has Phase-II trial been completed?
Answer, Pranav Bansal, MD & CEO. Order from top-4 companies in India. Phase-II trial completed with one customer; no further Phase-II needed—only sample and then trial order. Once supplied and approved, we can expect regular orders.
3. Product Mix & Margins
Parthiv Jonsa, Anand Rathi
Question. What is the product mix (low carbon/high carbon/stainless) in revenue and EBITDA percentage terms?
Answer, Pranav Bansal, MD & CEO. Product mix: ~55% low carbon, ~25% high carbon, ~20% stainless. This has not changed significantly. We cannot give separate EBITDA levels per stream—we focus on blended EBITDA per ton.
Follow-up. Low carbon has lower EBITDA contribution. What is the EBITDA mix?
Answer. Correct. We would not give separate EBITDA levels for all streams. We focus on blended EBITDA per ton.
Not answered directly.
4. Competitive Position
Pratik Singh, IIFL Capital
Question. Is the gas problem faced by smaller competitors, and can you gain market share despite weak demand?
Answer, Pranav Bansal, MD & CEO. Automotive sector has been doing well and we are still growing there. Every other sector—consumer durable, infra—sees very sluggish demand due to steel price increases and geopolitical situation. Situation is improving daily.
Follow-up. To gain market share previously you took margin hit. Is that phase behind us?
Answer. No negative impact on EBITDA foreseen from this year. At 20% growth, EBITDA should also grow 20%. Once normal, EBITDA per ton should be same if not better.
5. Unit Consolidation
Pratik Singh, IIFL Capital
Question. Update on Balaji Wire and Bansal High Carbon units planned for shutdown?
Answer, Pranav Bansal, MD & CEO. Those two units operating at almost negligible capacity utilisation. All shifted to Bansal Wire. Remaining 4-5% will shift in another 6-8 months.
6. Q1 Volume Guidance
Disha, Sapphire Capital
Question. Operating at 80-85% volume. How confident are you to maintain 20% guidance? Is there downside given auto is only 22% of revenue?
Answer, Pranav Bansal, MD & CEO. Difficult to give a number in a dynamic situation. Situation is getting better every day. Once it returns to normal, we have capacity available to grow at 20%.
Follow-up. Fair to say you are confident of 20% growth?
Answer. Once we return to normal, yes, 20% growth is what we should be able to do.
7. IHT Wire Ramp-up
Disha, Sapphire Capital
Question. IHT Wire capacity utilisation in Q4 and EBITDA per ton at current levels?
Answer, Pranav Bansal, MD & CEO. March alone at 25% capacity utilisation; should increase 10-15% every month. Not contributing much to EBITDA yet. Once it touches 50% utilisation, it should turn positive EBITDA.
8. Capex & Product Mix
Disha, Sapphire Capital
Question. FY27 capex guidance and expected product mix stability?
Answer, Pranav Bansal, MD & CEO. Capex focused on cash flows: 60-70% of cash flows reinvested. Rs 150-200 crore annually. Product mix expected stable at 55% low carbon, 25% high carbon, 20% stainless. Speciality should also start appearing in product mix this year.
9. Working Capital Management
Deepak, Sundaram Mutual Fund
Question. Sharp spike in payables days. Structural change in sourcing—more dealer procurement with better credit terms via inverse discounting?
Answer, Pranav Bansal, MD & CEO. Still buying from main suppliers and paying them advance. Inverse discounting facility added this year is driving higher payables. Vendor still gets advance from bank; we pay bank later. Working capital days being reduced overall so payables could go higher.
Follow-up. Will higher payables lead to increased interest expense?
Answer. Interest expense will increase but not disproportionately. We are already paying this interest through regular limits—no further increase expected.
10. Capital Work-in-Progress
Deepak, Sundaram Mutual Fund
Question. Rs 213 crore CWIP despite 60,000 tons capacity added—what is this?
Answer, Pranav Bansal, MD & CEO. CWIP includes 60,000 tons installed but not commissioned (to be commissioned in April) plus ongoing Dadari enhancements. Planning to add 1.2 lakh tons at Dadari this year to be ready for FY28 growth.
Follow-up. So FY27 capacity: 1.2 lakh at Dadri + 0.9 lakh at Sanand?
Answer. The 0.9 lakh Sanand will come towards end of FY27, usable only in FY28. Ongoing IHT expansion of 6,000 tons happening now plus low/high carbon expansions for capacity headroom to grow at 20% for 2-3 years.
11. Capacity Guidance
Deepak, Sundaram Mutual Fund
Question. By end FY27, capacity will increase from 6.8 lakh to what number?
Answer, Pranav Bansal, MD & CEO. From 6.8 lakh should be at least 8 lakh. With Sanand, might be 8.5 or 8.6 lakh tons. Capex capped at Rs 200 crore annually for this growth pace.
Follow-up. New Dadri 1.2 lakh tons split across product categories?
Answer. Similar to current product mix. Not a big change. Maybe some Speciality increases disproportionately.
12. Steel Cords Approval
Deepak, Sundaram Mutual Fund
Question. Steel Cords field trials status—completed or ongoing? First commercial supply timeline?
Answer, Pranav Bansal, MD & CEO. Some customers waived field trial due to strong sample results; expecting trial order from them. Once supplied and tested, regular supply can begin. Fire-related delay of 6 months largely covered by expedited approval. Expecting other customers in line by end of this year.
13. Sanand Land Monetisation
Heet Shah, Dalal & Broacha Stock Broking
Question. Decision on Sanand balanced 50% land after scrapping backward integration plan?
Answer, Pranav Bansal, MD & CEO. Will try to sell the land to get cash in. Backward integration deferred for at least 2 years. Speciality Wire has turned very well and focus is on high/low carbon market.
14. Q4 EBITDA Per Ton
Heet Shah, Dalal & Broacha Stock Broking
Question. Q4 EBITDA per ton was lowest in 8 quarters. Was it volume mix or gas impact?
Answer, Pranav Bansal, MD & CEO. No major volume mix change. EBITDA impact due to last 15 days in March—gas prices increased by INR 4,000-5,000 per ton. We had 30-40 day order book so increase absorbed with lag. 10-15 days inventory also helped partially.
Follow-up. FY27 total capacity 8 lakh tons and expected utilisation?
Answer. Depends on how the year goes. At 4.6 lakh tons this year, expecting 20% increase if normal. 1.2 lakh tons capacity available towards end of year; first half not needed given situation.
15. Capacity Split
Samay Shah, Nuvama Wealth Management
Question. Capacity split between high/low carbon and stainless? Capacity utilisation in FY26?
Answer, Pranav Bansal, MD & CEO. Capacity/utilisation split: MS (low carbon) 55-60%, high carbon 20-30% average 25%, stainless ~20%, Speciality less than 3-4%. Overall capacity utilisation 67% for FY26. New Dadri 1.2 lakh tons will be in same ratio.
16. Steel Cords Competitive Position
Poojan Shah, Molecule Ventures
Question. Steel Cords: industry ~2.5 lakh tons growing 11%. Bekaert expanding, Chinese entering Thailand. Are you still planning 2 lakh tons capacity?
Answer, Pranav Bansal, MD & CEO. Correct on all assumptions. Still planning to go ahead with capacity. We are the only and first Indian company. Calculations still support it. 10% import duty arbitrage exists. Once approved, our goal is still 2 lakh tons.
Follow-up. Your math shows Rs 2,500-2,700 crore revenue, 25% margin, Rs 600 crore EBITDA, 5-6 year payback. Correct?
Answer. Absolutely correct. Total investment Rs 2,000-2,500 crore over 5-7 years. EBITDA range Rs 600-800 crore at maturity.
17. Steel Cords Moat
Poojan Shah, Molecule Ventures
Question. What gives confidence you will be market share leader when competitors like Tata Steel could also enter?
Answer, Pranav Bansal, MD & CEO. Barriers to entry: technology (exclusive supplier collaborations), trained manpower (60 people already trained), long approval process (no domestic competitor), and low capex per ton due to in-house machinery division and 85-year industry experience. Our capex per ton is at least 50% lower than alternatives.
Follow-up. On approval side, will OEMs use Steel Cords in new product launches or replace existing Bekaert models?
Answer. Main consumption will be in existing models. In newer models, OEMs prefer established players first. We will initially serve regular tires. Key driver is domestic supply chain security—everyone currently imports.
18. Growth Guidance
Kunal, Veritas Research and Advisors
Question. More conservative on 20% guidance given current issues vs 30% earlier? Thoughts on FY27/FY28?
Answer, Pranav Bansal, MD & CEO. In last 10 years, we have grown at 20%, not 30%. 30% last year was due to pent-up demand after capacity constraints. Goal is to grow at 20-25% each year. Some years less, some more. Growth means both volume and EBITDA.
Follow-up. FY26 capacity utilisation and FY27 target?
Answer. FY26 utilisation was 67-68%. 80-85% gives best return ratios. But need capacity for 20% growth next year. 70% minimum.
19. Depreciation & PAT Outlook
Kunal, Veritas Research and Advisors
Question. Previous call said most capex done, depreciation/interest capitalised, PAT growth ahead. Q4 PAT driven by lower tax. Is reading correct?
Answer, Pranav Bansal, MD & CEO. Majority of depreciation already taken. Future depreciation increase will only follow actual EBITDA growth. Interest should also grow at same range as EBITDA—not higher or lower. If EBITDA grows 20%, depreciation and interest grow ~20%.
20. FY27 Capex
Pratik Singh, IIFL Capital
Question. Clarification: 1.2 lakh tons addition this year capex ~Rs 150 crore?
Answer, Pranav Bansal, MD & CEO. Broad range Rs 150-200 crore every year. Base will keep growing so investment should also increase 20% annually if growing at 20%. When Steel Cords capex kicks in, volume growth may slow as capital goes there.
Follow-up. When do you expect 20 kilotons run rate in Steel Cords?
Answer. Fire caused 6-month pushback but expedited approval may give some numbers within this financial year. Currently selling hose wire from facility to cover main costs.
21. Gas Price Impact
Parthiv Jonsa, Anand Rathi
Question. Current gas price scenario—escalation levels? Blended Q1 impact?
Answer, Pranav Bansal, MD & CEO. Gas prices still elevated—50% in some units, 300% in others. Blended Q1 escalation ~50%. April EBITDA per ton at Rs 1,500-2,500 only for 30-40 day order book window. Not entire quarter—50 days of standard EBITDA should be achievable as situation improves.
Follow-up. What discount is needed to gain Steel Cords market share from established global brand?
Answer. Too early to judge exact pricing. We do not expect very big difference. As first Indian company we should get advantage without large price reduction.
Partly answered.
What was said
Topic by topic, in the order it was spoken
FY26 Annual Performance · Pranav Bansal (MD & CEO)
- Full-year volumes 4.58 lakh metric tons (+33% YoY), highest annual sales achieved
- EBITDA and revenue grew ~20% reflecting underlying business strength despite Q4 disruption
- Cash flow of Rs 333 crore generated, exceeding Rs 250 crore initial target; Rs 600 crore target by 2027 maintained
Steel Cords Breakthrough · Pranav Bansal (MD & CEO)
- Major breakthrough: first trial order from top-4 Indian OEMs expected very soon
- Phase-II trial process waived for one customer due to strong sample results; only sample and then trial order required
- 2 lakh tons capacity planned for Steel Cords; total investment Rs 2,000-2,500 crore over 5-7 years; EBITDA Rs 600-800 crore expected
- 10% import duty arbitrage advantage for Indian manufacturer; domestic supply chain security key OEM driver
IHT Wire & Speciality Products · Pranav Bansal (MD & CEO)
- IHT Wire Phase-I ramping in-line and exceeding expectations; March 2026 at 25% capacity utilisation
- 10-15% monthly increase in IHT Wire utilisation expected; positive EBITDA at 50% utilisation
- LRPC wire (18,000 tons capacity) started at year-end generating positive EBITDA
- Stainless steel at ~20% of product mix; Speciality to increase disproportionately in new capacity
Gas Disruption Impact · Pranav Bansal (MD & CEO)
- Geopolitical tensions (Iran-Israel) disrupted natural gas supply; production cut to 35% in March
- Gas prices elevated 50-300% above normal across units; blended Q1 escalation ~50%
- INR 4,000-5,000 per ton cost increase absorbed due to 30-40 day order book lag
- April volumes at 80-85% of normal; demand also sluggish except automotive segment
Capacity & Manufacturing Footprint · Pranav Bansal (MD & CEO)
- Installed capacity 6.8 lakh metric tons; Dadari facility anchoring growth with 1.2 lakh tons added
- FY27 capacity target 8 lakh tons (from 6.8 lakh); Sanand 0.9 lakh tons by end-FY28
- Capex strategy tied to cash flows: 60-70% of operating cash flow reinvested; Rs 150-200 crore annual capex
- Sanand surplus land to be sold; backward integration deferred for at least 2 years
B2C Expansion · Pranav Bansal (MD & CEO)
- B2C segment strengthened with focused distribution network expansion and brand visibility
- 16 new product offerings launched for Western and Southern India
- Balaji Wire and Bansal High Carbon units operating at negligible capacity; 95% shifted to Bansal Wire
- Remaining 4-5% capacity shift expected in 6-8 months
Q4 Financial Results · Ghanshyam Gujrati (CFO)
- Q4 revenue Rs 1,136 crore (+21% YoY); EBITDA Rs 80 crore (7% margin); net profit Rs 40 crore (+21% YoY)
- Q4 volumes 1.17 lakh metric tons (+20% YoY); slightly lower sequentially due to gas disruption
- FY26 revenue Rs 4,160 crore (+19%); EBITDA Rs 325 crore (+17%); net profit Rs 161 crore (+10%)
In their words
Every day is a new day. Every day we have different challenges. It is definitely getting better. But yes, we will still have to see how long this happens.
Our capex per ton is at least 50% lower than alternatives because we have our own machinery division and have been in this industry for about 85 years.
There is only one company in India today making this [Steel Cords]. We are the only and the first Indian company to start. Therefore, we see a good traction in this product.
To check next time
What management committed to on this call, or the dates they gave.
- Q1 FY27 volume trajectory once gas supply and demand normalize (per 20% growth guidance).
- Receipt of first Steel Cords trial order from top four tire customers and customer test results.
- Whether blended gas price hike falls below the current ~50% level in Q1.
- Commissioning of the 60,000 tons capital work-in-progress in April 2026.
- Progress on 1.2 lakh ton Dadri expansion in H2 FY27 and sale of surplus Sanand land.
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 Thu 30 Apr 2026 | ₹296.46 | −3.01% | −0.74% |
| 5 sessions Thu 7 May 2026 | ₹326.35 | +6.77% | +0.62% |
| 20 sessions Fri 29 May 2026 | ₹318.25 | +4.12% | −2.61% |
From the close of Wed 29 Apr 2026, ₹305.66: 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.