Bansal Wire Inds Q2 FY27 Earnings Call — Analysis (NSE: BANSALWIRE)
Bansal Wire posts record Q2FY27 EBITDA of ₹105 Cr (+29% YoY) and outlines expansion to 8.3 lakh tonnes by FY28 alongside specialty wire commercialization.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹1,308 Cr ( +24% YoY ) . New guidance — Q4FY28 total manufacturing capacity 8.3 lakh tons . New story: Speciality wire pipeline (Steel Cord, IHT, OHT) .
Results
Revenue grew 24% YoY to ₹1,308 Cr with EBITDA up 29% YoY to ₹105 Cr and PAT up 38% YoY to ₹53 Cr on sales volume of 129,000 MT.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹1,308 Cr | +24% | yoy · Q2FY27 · vs Q2FY26 |
| EBITDA | ₹105 Cr | +29% | yoy · Q2FY27 · vs Q2FY26 |
| Net Profit (PAT) | ₹53 Cr | +38% | yoy · Q2FY27 · vs Q2FY26 |
| Sales Volume | 129,000 MT | +12.56% | yoy · Q2FY27 · vs 114,609 MT in Q2FY26 |
| Operating Cash Flow | ₹218 Cr | none · Q2FY27 · ₹339 Cr in H1FY27 | |
| Total Debt | ₹300 Cr | -40% | point_in_time · Q2FY27 · as of Sep-26, down 40% in H1 |
Guidance
Management reiterated 20% YoY volume growth for H2FY27, EBITDA/tonne guidance of ₹7,000-₹7,500, and cumulative OCF of ~₹800 Cr across FY27-FY28.
What management committed to
- We expect our overall manufacturing capacity will increase from 6.8 lakh tons and reach approximately 8.3 lakh tons by the end of next year. — 8.3 lakh tons, Q4FY28
- We are targeting cumulative operating cash flow generation of approximately Rs. 800 crores over FY '27 and '28 combined. — Rs. 800 crores, H1FY28? Actually cumulative over two years, so end of FY28
- We will add 60,000 tons of capacity at Dadri as a brownfield expansion. — 60,000 tons, FY28
Key themes
Capacity ramp-up and product mix enrichment
How the narrative shifted
- Recovery from gas cost shock: Shift from managing the shock to demonstrating recovery and normalization.
- B2C segment scaling: No change; confidence remains.
- Speciality wire pipeline (Steel Cord, IHT, OHT): Steel Cord timeline refined: commercialization possible within year; OHT capacity on schedule.
- 20% volume growth engine intact: The narrative shifted from full-year 20% to H2-only 20% growth, implicitly acknowledging full-year miss.
- Working capital discipline and cash flow focus: Quantified target with H1 achievement exceeding expectations.
- Geopolitical uncertainty and input cost risk: New dimension: raw material supply shortage beyond gas.
- Capacity expansion roadmap with disciplined capex: Dadri brownfield (+60k tons) and Sanand greenfield (+90k tons) progressing; total capacity to reach 8.3 lakh tons by end of FY28; capex at Rs.200-225 Cr/year.
Operational commentary
- Dadri brownfield expansion of 60,000 MT is nearing completion with most capital work already completed; expected capitalization in H2FY27.
- Southern Gujarat / Sanand greenfield project of 90,000 MT for stainless steel and low carbon wires underway with ₹150 Cr estimated capex excluding land.
- Overall manufacturing capacity is targeted to expand from 6.8 lakh tonnes to ~8.3 lakh tonnes by the end of next fiscal year.
- Specialty wire lines ramping up: IHT capacity at 9,000 MT is EBITDA-positive; adding 6,000 MT OHT line to reach 15,000 MT combined specialty capacity.
- Steel tyre cord pilot capacity of 20,000 MT is under customer validation with 3 accounts, targeting initial commercialization within FY27 and an ultimate scale of 200,000 MT.
- B2C segment contributed 10-12% of total volumes in Q2 despite seasonal softness, generating ~50% higher EBITDA per tonne than industrial B2B.
Analyst Q&A
Q. Clarification on raw material shortages and volume growth outlook for FY27.
Raw material suppliers diverted wire rod production to TMT alongside some supplier breakdowns, causing October production hits, but inventory buffer cushioned September and operations are back up; management affirmed 20% YoY volume growth for H2FY27.
Q. Sustainability of EBITDA per tonne exceeding ₹8,000 vs the guided range of ₹7,000-₹7,500.
Q2 benefited from ~₹200/tonne one-time inventory gain, better low-carbon/B2C mix, and Dadri scale economies; management maintains a conservative commitment of ₹7,000-₹7,500/tonne for H2FY27.
Q. Commercialization timeline and customer ramp-up for steel tyre cord.
One customer completed first trial order with a second round awaited; second customer visited and approved supplies pending formal PO; third customer sample approved. Initial ramp-up will be measured across multiple customers to avoid single-customer concentration above 20-25%.
Q. Bead wire customer approvals and capacity roadmap.
Bead wire nameplate capacity is 30,000 MT but running at 10,000-15,000 MT as management prioritized Dadri ramp-up over new OEM approvals; supply is currently to cycle and non-OEM tyre customers with formal OEM approval push planned over coming quarters.
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