Bansal Wire Q4 FY26: Record volumes, cash flow turnaround, and a cautious FY27 start

Bansal Wire Industries Limited closed FY26 with its highest annual sales volume to date, alongside a sharp improvement in operating cash flow. For FY26, the company reported revenue from operations of INR 4,159.8 crore, EBITDA of INR 323.5 crore, and PAT of INR 160.9 crore. Volumes grew faster than revenue, rising 32.9% year-on-year to 4,58,055 metric tons, reflecting the benefits of capacity additions and a diversified customer base.

Q4 FY26 continued the growth trend, but profitability softened sequentially. Revenue rose 10.4% quarter-on-quarter to INR 1,136.4 crore, while EBITDA declined 7.5% to INR 80.4 crore. Management attributed the margin pressure largely to disruptions in March linked to geopolitical tensions and natural gas supply challenges, which raised costs and impacted production schedules.

FY26 performance: volume-led growth, steady margins

Across FY26, revenue from operations increased 18.6% year-on-year to INR 4,159.8 crore, while EBITDA rose 17.3% to INR 323.5 crore. EBITDA margin for FY26 was reported at 7.8% in the presentation, broadly stable versus FY25. PAT grew 10.0% to INR 160.9 crore.

The company highlighted its diversified end-market exposure and low concentration risk. The FY26 sector presence shared in the investor presentation showed automotive at 21.9% of sales, miscellaneous at 23.0%, general engineering at 12.0%, and infrastructure at 10.5%, with no single sector above 25%.

Cash flow inflection and balance sheet improvement

A key feature of FY26 was operating cash flow. The consolidated cash flow statement shows net cash from operating activities of INR 3,330.8 million, equivalent to about INR 333.1 crore, compared with a negative INR 153.3 crore in FY25. Management linked this shift to a sharper focus on ROCE, tighter working capital, and a reassessment of capital allocation priorities, including deferring a backward integration project.

Leverage metrics improved in FY26 as well. Net debt to EBITDA reduced to 1.68 in FY26 from 2.18 in FY25, and debt to equity declined to 0.39 from 0.48. The company also explained that payables increased because of purchase discounting arrangements, where vendors receive upfront payment while the company benefits from extended credit terms.

Specialty wires, capacity roadmap, and near-term disruptions

The company’s strategic direction remains centered on moving toward higher-value wire products. Management described IHT specialty wire as gaining traction, with Phase I ramp-up exceeding expectations and Phase II expansion adding 6,000 tons of capacity over the existing 9,000 tons. In the concall, management stated IHT utilization was about 25% in March and is expected to rise by 10 to 15 percentage points each month, with positive EBITDA expected after reaching about 50% utilization.

Steel cord remains a longer-cycle initiative. Management disclosed a fire incident in the steel cords shed that delayed approvals, but stated it expects a first trial order soon from one of the top four tire companies in India. Commercial scale-up is dependent on customer trial outcomes and approvals.

For FY27, management signaled a subdued start. It said production was temporarily impacted by natural gas disruptions and that demand weakness is visible across most segments except automotive. While it did not quantify a full-year impact, management reiterated that once conditions normalize it expects to return to a targeted ~20% growth trajectory.

Capex guidance has been reframed around cash flows. Management indicated annual capex is intended to be broadly INR 150 to 200 crore, with about 60 to 70% of operating cash flows reinvested into capex. It also indicated installed capacity could increase from about 6.8 lakh MTPA to at least 8.0 lakh by end of FY27, with the Sanand expansion contributing later and largely usable in FY28.

Takeaways

FY26 strengthened the core investment case around scale, diversified end markets, and improving cash conversion. The sharp turnaround in operating cash flow and the reduction in leverage are meaningful, particularly in a volume-driven, working-capital-intensive manufacturing business.

The near-term swing factor is the operating environment in early FY27. Management described elevated gas costs and demand softness outside automotive, which could pressure utilization and blended EBITDA per ton in the short run. Beyond that, the focus shifts back to execution: delivering steady volume growth from added capacity, ramping IHT wires to profitable utilization, and translating steel cord trials into repeat commercial orders.