Bansal Wire Industries: Forging Ahead with Record Performance and Strategic Clarity in Q2 FY26

Bansal Wire Industries Limited has reported a stellar performance for the second quarter and first half of Fiscal Year 2026, marking its fifth consecutive quarter of delivering higher revenues, volume, and EBITDA since its listing. The company achieved its highest-ever revenue, sales volume, and EBITDA, demonstrating remarkable resilience and operational excellence despite a challenging business environment characterized by heavy monsoons and labor shortages. This robust performance underscores the company's steadfast focus on innovation-led differentiation and disciplined execution.

For Q2 FY26, the company's consolidated revenue from operations stood at INR 1,055.40 crore, reflecting a significant 27.9% year-on-year (YoY) growth. EBITDA for the quarter increased by 19.8% YoY to INR 81.58 crore. While Profit After Tax (PAT) for Q2 FY26 was INR 38.32 crore, a slight decrease of 4.3% YoY, this was primarily attributed to higher depreciation and interest costs resulting from the capitalization of investments in the Dadri facility. However, cash profit for the quarter rose by a healthy 17% YoY to INR 55.91 crore, indicating strong underlying cash generation.

H1 FY26: A Half-Year of Strategic Transformation

The first half of FY26 has been a period of defining transformation for Bansal Wire Industries. The company's management has strategically recalibrated its investment decisions, shifting its focus entirely towards cash flow positivity and achieving a higher Return on Capital Employed (ROCE). This re-evaluation led to a doubling down on its core business, where it sees significant growth potential and competitive advantage.

For H1 FY26, consolidated revenue from operations reached INR 1,994.41 crore, growing 21.4% YoY. EBITDA for the half-year increased by 19.7% YoY to INR 156.04 crore. PAT for H1 FY26 stood at INR 77.60 crore, an 8.4% YoY increase, while cash profit surged by 24.3% YoY to INR 105.87 crore. The company has already realized almost INR 150 crore of free cash flow from operations in this half-year, a testament to its disciplined approach.

Financial Summary (INR Crore)

Strategic Initiatives and Future Outlook

The company's strategic roadmap is focused on sustaining its transformational drive and enhancing long-term value for shareholders. A key highlight is the launch of a new specialty product, "Induction Hardened and Tempered (IHT) Wire," with a capacity of 9,000 tonnes annually. This product caters to high-performance automotive spring applications and is expected to begin contributing to revenue within FY26. This move strengthens Bansal Wire's presence in the automotive value chain and expands its higher value-added product portfolio.

Significant progress has also been made in the Steel Tyre Cord segment, with two sample approvals received from major tire companies. The company is setting up a 20,000-tonne capacity for this product and expects commercialization by mid-next year. Furthermore, Bansal Wire has successfully penetrated the B2C segment, which contributed 5% of its total volume in Q2 FY26. This segment, serving agriculture, fencing, and poultry cages, offers better margins than the traditional B2B segment and is projected to grow by 30%-35% annually.

In terms of capacity expansion, the Dadri facility is now stabilizing and operating effectively, with its sales volume increasing by almost 50% compared to Q1 FY26. The company's total installed capacity stands at 6,18,000 tons, with a capacity utilization of 74% in Q2 FY26. An additional 60,000 tons of capacity has been commissioned in H1 FY26, and another 60,000 tons are underway for completion within Q3 FY26. Looking ahead, Bansal Wire plans a further investment of INR 150 crore in Sanand, Gujarat, to establish 90,000 tonnes of steel wire capacity by December 2027, aiming to strengthen its leadership in Western India.

Management's Vision for Sustainable Growth

Management is confident in the company's strategic positioning to capitalize on the expanding Indian economy and sustained growth momentum in key end-use sectors. The company anticipates a 35% growth in volume and 20% growth in EBITDA for the current fiscal year. The long-term vision is to achieve 20%-25% annual growth in both revenue and absolute EBITDA, with EBITDA per ton expected to increase from FY27 due to the growing contribution of specialty wires. The company aims for a self-sustaining growth model, targeting 25% ROC by 2027 and generating over INR 600 crore of positive cash flow in FY26 and FY27 combined. This disciplined approach to capital allocation and focus on profitable growth underscores Bansal Wire Industries' commitment to enduring value creation for its shareholders.