Bansal Wire Q2 FY27: Profit Rises 38%, Capacity Expands

Bansal Wire Industries reported its highest quarterly revenue, EBITDA and profit after tax in Q2 FY27, supported by higher sales volume, operational efficiencies, cost management and an improved product mix. Revenue rose 24% year-on-year to INR 1,308 crore, while net profit increased 38% to INR 53 crore. Management also reiterated its volume growth and EBITDA-per-tonne targets for the second half of FY27 despite a recent shortage of wire rods.

Record quarterly financial performance

The company reported EBITDA of INR 105 crore for Q2 FY27, up 29% year-on-year. Sales volume rose to 129,000 metric tons from 114,609 metric tons in Q2 FY26. The improvement in profitability came alongside the company’s highest EBITDA margin to date, according to management.

Pranav Bansal, Managing Director and CEO, said the quarter benefited from better operational efficiency, cost management and a favourable product mix. The company also described Q2 FY27 as a landmark quarter because revenue, EBITDA and profit after tax reached record levels.

First-half numbers reflect a stronger second quarter

For H1 FY27, Bansal Wire reported revenue of INR 2,476 crore, EBITDA of INR 162 crore and net profit of INR 73 crore. The first-half EBITDA performance included the company’s highest EBITDA and EBITDA per tonne for an H1 period, management said.

The Q2 performance followed a weaker first quarter in which the company reported revenue of INR 1,168 crore, EBITDA of INR 57 crore and net profit of INR 20 crore. Q2 therefore accounted for a substantial part of the first-half operating profit and profit after tax.

Key Q2 FY27 financial data

EBITDA per tonne guidance remains unchanged

Management said EBITDA excluding inventory gains was about INR 7,800 to INR 7,900 per tonne. This was above the stated guidance of INR 7,500 per tonne, which the company remains confident of delivering in H2 FY27.

Over the longer term, Bansal Wire is targeting EBITDA of INR 8,000 to INR 10,000 per tonne as specialty products form a larger share of its business. The stated margin objective is linked to the ongoing ramp-up in higher-value product categories rather than to a change in the company’s near-term guidance.

Specialty IHT and OHT wires offer higher margins

Management indicated that IHT and OHT wires generate EBITDA of about INR 15,000 to INR 20,000 per tonne. These products are part of the specialty business that the company expects to support its long-term EBITDA-per-tonne target.

The difference between specialty-wire profitability and the company’s overall EBITDA guidance highlights the importance of product mix in the planned margin expansion. Management did not provide a specialty volume contribution or revenue split during the call.

Steel tyre cord approvals move forward

Bansal Wire received its first steel tyre cord trial order in the preceding quarter. Pranav Bansal said the company expected a second trial order from another customer within 10 to 15 days of the October 23 earnings call.

The company said second-stage approvals with other customers were progressing. Management expects commercialisation in the steel tyre cord business could begin within FY27, subject to the customer approval process.

Wire rod shortage affects operations

Management flagged an acute shortage of wire rods during the previous one-and-a-half to two months. According to the company, some suppliers diverted production towards TMT products, while breakdowns at certain supplier facilities added to the shortage.

The raw-material constraint is relevant because wire rods are a key input for Bansal Wire’s operations. Management maintained its H2 FY27 volume-growth target despite the disruption, while noting that volume lost in Q1 cannot be recovered.

H2 volume target and capacity addition

Bansal Wire retained its target of 20% year-on-year volume growth for H2 FY27. The company’s operating capacity stood at about 680,000 tonnes as of Q1 FY27, and management expects total capacity to increase to about 830,000 tonnes by the end of the following year.

The planned capacity addition is intended to support growth across the company’s product portfolio. Its ability to translate capacity into volumes will also depend on raw-material availability, customer approvals in new categories and demand conditions.

Capital expenditure and cash-flow plan

Management has guided for annual capital expenditure of INR 200 crore to INR 225 crore. The company expects to fund this spending largely through internal accruals.

Bansal Wire is targeting cumulative operating cash flow of about INR 800 crore across FY27 and FY28. This target sits alongside the capacity expansion plan and indicates that the company intends to support growth investments mainly from operating cash generation.

Return metrics and investor relevance

Annualised return on capital employed, based on Q2 performance, was approximately 22%, according to management. This moves the company closer to its near-term ROCE target of 25%.

For investors, the central factors to track are the delivery of H2 volume guidance, stability in wire rod supplies, the pace of specialty-product ramp-up and customer approvals in steel tyre cord. The Q2 results showed stronger financial performance, while the second half will test whether the company can maintain margins and volume growth amid input constraints.

Outlook for the remainder of FY27

Bansal Wire has maintained its operational targets rather than revising them after the stronger Q2. Management expects to deliver EBITDA of INR 7,500 per tonne in H2 FY27 and 20% year-on-year volume growth during the period.

The next updates on the second steel tyre cord trial order, customer approvals and capacity additions will provide further visibility on the company’s specialty-business progress. The company’s subsequent earnings disclosures will also indicate whether wire rod availability has normalised.