Bansal Wire Inds Q1 FY27 Earnings Call — Analysis (NSE: BANSALWIRE)

Management absorbed a sudden gas-cost spike to protect customer relationships, expects margins back to ₹7-8/kg and guides 20% volume growth for the rest of FY27.

28 Jul 2026 · Analysis by Alpha Inflection

The take

Q1FY27 Revenue ₹1,168 Cr ( +~25% YoY ) . New guidance — FY27 fy27 volume growth 20% . New story: Speciality wire pipeline (Steel Cord, IHT, OHT) .

Results

Q1FY27 revenue ₹1,168 Cr (+25% YoY); EBITDA ₹57 Cr, PAT ₹20 Cr; sales volume 112k tonnes (104k tonnes Q1FY26) but margins were hit by a temporary gas shortage and cost absorption.

Financial highlights

Guidance

FY27 volume growth of 20% with EBITDA growth also at 20%, supported by a ₹200-250 Cr annual capex cap and specialty ramp.

What management committed to

• We are looking at a 20% volume growth [for FY27]. — 20%, FY27
• Our EBITDA guidance would also still remain 20% [growth for FY27]. — 20%, FY27
• We will cap our CAPEX at about INR 200 crore-INR 250 crore every year... this year also will be INR 200 crore-INR 250 crore in total. — INR 200 crore-INR 250 crore, FY27
• [IHT] next month we are targeting 50% capacity utilization. — 50%, Q2FY27
• Within this year, we will reach to an optimum utilization level [in IHT] (60%-80% capacity utilization). — 60%-80%, FY27
• OHT wire product to commission shortly; combined IHT+OHT capacity will be 15,000 tonnes by end of this year. — 15,000 tonnes, FY27
• [Steel Cord]... it can take up to six to eight months [for the first customer trials to conclude]. — 6-8 months, FY27
• Our ambition is to reach 50% [of low-carbon volume] through B2C... 25% of our total sales should come from B2C. — 25%
• In the Speciality wire front (Steel Cord, hose wire), we are expecting INR 600-800 Cr EBITDA on an investment of INR 2,000-2,500 Cr for 2 lakh tonnes capacity. — INR 600-800 Cr
• Our target is 25% ROCE in current business in a very short while. — 25%, in a very short while

Key themes

Recovery from gas shock, B2C/specialty ramp, 20% growth machine

How the narrative shifted

• Recovery from gas cost shock: Temporary geopolitical gas shortage caused a 45-day margin hit; absorbed to protect customers; margins recovered by mid-May; elevated costs now passed on.
• B2C segment scaling: New B2C range already 10% of sales; margins 20-30% higher than B2B; ambition to reach 25% of total sales; a structural margin and brand lever.
• Speciality wire pipeline (Steel Cord, IHT, OHT): IHT/OHT scaling fast with high customer approval rates; Steel Cord first trial validates import-substitution thesis; targeted EBITDA ₹10-20/kg at optimum utilization; long runway.
• 20% volume growth engine intact: Historical 20% CAGR driven by one-third market share gains, one-third existing customers, one-third new products; starting year with 20-25% excess capacity.
• Working capital discipline and cash flow focus: Generated ₹121 Cr OCF in Q1 despite margin stress; reducing receivable days, using channel/vendor financing; structural improvement expected over 1-2 years.
• Geopolitical uncertainty and input cost risk: Gas prices remain elevated with no near-term decline; war-driven supply disruption a recurring risk, but cost-plus model now reflects higher input costs.

Operational commentary

• Steel Cord: received first trial order from a leading Indian tire manufacturer; some customers skipped field trial to bulk trial; trial cycle estimated at 6-8 months for the first customer.
• IHT wire: customer approvals progressing well; next month targeting 50% capacity utilization; optimum utilization (60-80%) expected within FY27.
• OHT wire: commissioning expected shortly; combined IHT+OHT capacity to reach 15,000 tonnes by end-FY27.
• B2C segment (Farming, Fencing, Poultry): contributed ~10% of Q1 sales; ambition to reach 25% of total sales (50% of low-carbon volume) over time.
• Core business gaining market share across all end-markets; demand returning in auto, infra, exports, and B2C.
• R&D develops 20-25 new SKUs per month, targeting 250 new products per year to sustain growth.
• Cash flow focus: generated ₹120+ Cr operating cash flow in Q1 despite margin pressure; initiatives on receivables and channel financing underway.

Analyst Q&A

• Q. How do you rate Q1 performance, and how would a prolonged war affect growth/margins?

  Pranav Bansal explained the cost absorption strategy, margin drop to ₹2/kg for first 45 days, recovery to ₹7-8/kg from mid-May, and confidence in achieving full-year targets.

• Q. Can you break down the ₹26 Cr increase in other expenses between extra fuel cost and new plant costs?

  Pranav Bansal: 'I would not be actually able to give you some specific numbers here...'

• Q. Will you be able to book meaningful revenue from Steel Cord and B2C in FY27?

  Yes, B2C 10% revenue already; IHT/OHT targeting 60-80% utilization by year-end; Steel Cord still long process.

• Q. What gives conviction for 145k tonnes/quarter volume run-rate given Q1 was 112k?

  Historical 20% CAGR driven by market share gains, new products, existing customers; 85-90% utilization is sweet spot; starting with 25% excess capacity.

• Q. Why is payable financing being used instead of negotiating better payment terms with suppliers?

  We pay suppliers in advance to maintain leverage and pricing power; we are reducing receivables and expect structural improvement in working capital over 1-2 years.

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