Bansal Wire steel cord: trial orders, FY27 sales path

What changed in the steel cord story

Bansal Wire Industries Ltd has indicated that its steel cord initiative has moved faster than expected on approvals and is now close to a first trial order. Management described the development as a major breakthrough on the steel cord front. The discussion points to progress after a period of headwinds that had delayed approvals earlier. The company also linked the operating context to a fire incident that slowed the start of the year before momentum improved. While near-term volumes are not quantified, the message is that the next step is no longer only lab validation, but actual customer trials. For investors tracking new-product ramps, the key takeaway is the shift from “approval expectation” to “trial order expectation.”

Trial order: who the customer set is

On the expected first trial order, the company said it would be from the “top four” companies in India. The management commentary places these customers within the automotive value chain, and the broader context repeatedly references tyre companies in relation to steel cord approvals. The company did not name specific customers in the remarks provided. It also clarified that this would be its first trial order, and that moving from trial to regular orders depends on customer validation after supply. Management said it is hard to predict the exact timing of regular orders today, even if a trial order is received and supplied. That uncertainty is consistent with how qualification-heavy auto and tyre supply chains typically operate.

Sample approval vs field trial: the approval process

Management explained that steel cord approvals generally run in two phases. The first is lab or sample approval, where samples are tested in the customer’s lab. The second phase is the field trial, where the product is tested in real-world conditions. In the company’s case, sample approvals have been received from two major tyre companies, and it is now in the second phase of testing. The field trial phase was described as typically taking about 7 to 8 months, depending on factors such as the vehicle used for testing. Importantly, management also said it is slightly ahead of schedule on this path.

A faster-than-expected approval and an altered trial path

The company referenced receiving a faster-than-expected approval, without specifying the customer or the exact approval type in the excerpt. It also added an operational nuance: for some customers, strong sample results can lead them to remove the field trial step. In those cases, management said the company could receive a trial order directly after sample approval. One customer was referenced where the phase two trial process would not be required and the next step would be a sample followed by a trial order. After the customer tests the supplied trial lot, the relationship can move to regular supply levels. This sequencing matters because it can shorten the time between technical clearance and commercial repeat orders, even if it does not eliminate customer validation.

Timelines management has guided to

Management commentary included multiple time markers for when commercial production and sales could begin. It said it is looking to start commercial production by November or December of this year, after successful trials, and to begin selling within the same month. The company also said it would first focus on hose wire and then steel cord, noting that steel cord can involve a one-year approval process.

Separately, steel tyre cord commercial sales were indicated as expected by Q2 or Q3 of FY27. Another update stated the project is delayed by about 1 to 1.5 months, with lab trials nearly complete, and field trials expected to begin once the plant is back online. In addition, management has described commercialization as expected by mid-next year, and elsewhere the timeline is referenced as mid-2026. These statements collectively indicate a ramp that is still trial-dependent, with sales timing tied to successful completion of customer testing.

Capacity and market sizing shared by the company

The company said it has a 20,000-tonne pilot project for steel cord. It described the market size for steel cord as about 3,00,000 tonnes. Management also stated a longer-term target of about 2,00,000 tonnes of complete wire capacity in steel as it moves forward. These figures provide a sense of how management views addressable demand versus its initial capacity. It also underlines that the near-term project is positioned as an entry and validation phase, rather than a full-scale rollout from day one.

Current product mix and utilisation levels

Beyond steel cord, the company shared a snapshot of its broader product mix and utilisation. It said its product mix has remained broadly the same at about 55 percent low carbon, 25 percent high carbon, and 20 percent stainless steel. On utilisation, management said mild steel (MS) capacity or utilisation generally remains within 55 to 60 percent. It added that high carbon remains around 25 percent on average, with a stated range of roughly 20 to 30 percent. Stainless steel was referenced as the remaining category, though the excerpt does not provide a single utilisation range for it in the same way.

What the company is positioning beyond steel cord

Management highlighted innovations tied to automotive applications. It said Bansal Wire becomes the first Indian company to manufacture steel cord for the tyre industry. It also referenced IHT Wire, described as a high-strength, import-substitute solution for automotive suspension systems, and said it is the second company in India to start doing that product. The company also mentioned it is looking at 23 major products in the future. These points indicate that steel cord is being presented as part of a broader product expansion agenda rather than a standalone bet.

Key facts snapshot

Market impact and why investors are tracking this

The immediate market relevance is that steel cord is moving along the approval funnel toward trial orders, which is the step that typically precedes repeat commercial supply in auto and tyre procurement. The company’s commentary also shows how operational disruptions such as the fire incident can slow early-year performance, even as approvals and customer qualification continue in parallel. Investors will likely track two operational signals going forward: whether trial orders translate into regular orders, and whether timelines like November-December commercial production and FY27 sales milestones remain intact. Management’s emphasis on being slightly ahead of schedule on approvals contrasts with the mention of a 1 to 1.5 month project delay, suggesting different parts of the program may be moving at different speeds.

Conclusion

Bansal Wire’s latest updates suggest steel cord is past the “expectation” stage and is now nearing trial orders, supported by sample approvals from major tyre companies. The next visible checkpoints are completion of field trials where applicable, the first trial supplies, and then the conversion to regular orders. Management has guided to commercial production starting around November or December of this year, with steel tyre cord commercial sales expected by Q2 or Q3 of FY27, subject to successful trials and customer approvals.