Bansal Wire Inds Q1 FY27 Results (NSE: BANSALWIRE)
Signal: Margin pressure
The read
Revenue growth remained robust at 24.4% YoY despite a challenging quarter, but profitability suffered a sharp setback due to one-off headwinds (geopolitical tensions, gas supply disruptions, input cost). The strategic milestone of a Steel Tyre Cord trial order signals long-term growth potential. Management expects normalisation and reaffirms full-year volumes and EBITDA targets.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,167.89 Cr | 24.4% | 2.8% |
| EBIT | ₹56.71 Cr | -23.8% | |
| Net profit | ₹20.46 Cr | -47.9% | |
| EBIT margin | 4.9% |
P&L walk
Revenue grew 24.4% YoY to ₹11,678.9 Mn, but EBITDA margin contracted 300bps to 4.9% due to input cost pressures and operational disruptions from geopolitical tensions; PAT declined 47.9% YoY.
Key positives
- Revenue grew 24.4% YoY to ₹11,678.9 Mn, despite challenging conditions.
- Secured trial purchase order for Steel Tyre Cord from a leading Indian tyre manufacturer, a key import substitution opportunity.
- Volume of 1,11,962 MT delivered even with operational disruptions.
- New B2C product launches in farming, fencing, poultry segments.
Key concerns
- EBITDA margin contracted 300bps YoY to 4.9%, the lowest in recent quarters.
- PAT declined 47.9% YoY to ₹204.6 Mn.
- Geopolitical tensions and gas supply disruptions impacted production and volumes.
- Input cost pressures persisted during the quarter.
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