Bansal Wire Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Sales volume reached 1.29 lakh metric tonnes (L MT) in Q2 FY27, representing a 12.5% year-on-year increase and a 15.1% quarter-on-quarter increase over Q1 FY27.
  • Overall plant utilization increased to 74% in Q2 FY27, up from 68% in FY26.
  • The improved performance was driven by a richer product mix and more efficient operations at the Dadri plant.
  • Value-added products gained traction: IHT wire is commissioned and started adding to revenue, while Steel Tyre Cord received trial orders and is under customer evaluation.
  • The OHT line is under installation, with expansion planned to take combined IHT and OHT capacity from 9,000 MT to 15,000 MT by Q4 FY2027.

Financial Highlights

Q2 FY27 Performance (₹ crore):

  • Revenue from Operations: ₹1,308.1
  • Total Income: ₹1,308.6
  • EBITDA: ₹105.0 (85.2% QoQ growth, 28.7% YoY growth)
  • Profit Before Tax: ₹71.8 (175.8% QoQ growth, 40.9% YoY growth)
  • Profit After Tax: ₹52.9 (158.6% QoQ growth, 38.0% YoY growth)
  • Basic and diluted EPS: ₹0.68 (adjusted for stock split)

H1 FY27 Performance (₹ crore):

  • Revenue from Operations: ₹2,476.0 (24.1% YoY growth)
  • Total Income: ₹2,476.8 (23.7% YoY growth)
  • EBITDA: ₹161.7 (3.7% YoY growth)
  • Profit Before Tax: ₹97.8 (-3.1% YoY)
  • Profit After Tax: ₹73.4 (-5.5% YoY)
  • Basic and diluted EPS: ₹0.94

Margins:

  • EBITDA per tonne reached ₹8,150 in Q2 FY27, the highest in company history.

Drivers of financial performance: Higher utilization at Dadri plant, richer product mix, and operational efficiencies that lowered operating cost per tonne.

Cash Flow and Capital Efficiency

  • Operating Cash Flow for H1 FY27: ₹339 crore (surpassed full-year FY26 OCF of ₹333 crore)
  • Working capital days reduced to 49 in H1 FY27 from 75 over the last two quarters
  • ROCE improved to 22.3% for Q2 FY27 against 15.4% in FY26
  • Company targeting ROCE of 25%+

Balance Sheet Snapshot (H1 FY27, ₹ crore)

  • Total Assets: ₹2,626.3
  • Property, plant and equipment: ₹884.1
  • Capital Work in Progress: ₹198.1
  • Inventories: ₹648.8
  • Trade receivables: ₹652.1
  • Equity and Reserves: ₹1,504.4
  • Borrowings (non-current + current): ₹333.4
  • Trade payables: ₹627.6
  • Net Debt-to-Equity: 0.2x (improved from 1.6x in FY24)

Capex & Cash Flow Health

  • Capital Expenditure in H1 FY27: ₹87 crore
  • Planned annual capex: ₹200-225 crore through internal accruals for each of next 5 years
  • Free Cash Flow: Not Specified
  • Operating Cash Flow: ₹339.1 crore (H1 FY27)
  • Investment Rationale: Focus on capacity expansion, technology upgrades, and higher-margin products

Strategic & R&D Initiatives

Five Strategic Priorities:

1. ROCE and Cash Flow Generation: Targeting 25%+ ROCE through disciplined working capital management

2. Specialty Wire Ramp-up: Driving specialty wires portfolio (tyre cord, IHT, OHT, Brass coated Hose Wire)

3. B2C Farming, Fencing and Poultry: B2C segment achieved ~10% of sales with higher margins

4. Expansion Into New Geography: Secured land at Sanand, Gujarat for greenfield expansion

5. Brownfield Expansion & New Product Development: Product development for Auto and Infra sectors

Investments in Innovation:

  • Advanced in-house testing facilities including metallurgical, fatigue, mechanical, and chemical analysis
  • Rubber lab, stress-strain properties, material characterization, and ageing simulation
  • Team of 10+ including metallurgists
  • IATF certified manufacturing unit

Expected impact on growth: Expansion will take combined IHT and OHT capacity from 9,000 MT to 15,000 MT by Q4 FY2027

Future Expansion Plans

Capacity Enhancement:

  • Current capacity: 6.8 lakh MT
  • Dadri expansion: 60K MT ongoing brownfield expansion (expected completion Q4 FY2027)
  • Sanand expansion: 90K MT planned greenfield expansion (target commissioning FY2028)
  • Total future capacity: 8.3 lakh MT

Future Returns and Growth:

  • Targeted ROCE of 25%+
  • Cumulative OCF of ₹800+ crore over FY27 & FY28
  • ~20% EBITDA growth CAGR

Industry Trends & Business Environment

Macro/Industry Trends: Broad-based India Capex, Grid, Mobility, Industrialization Cycle and Rural growth expanding addressable market for steel wire

Impact on Company: Supports deeper participation in higher-value specialty applications; Large TAM for Steel Tyre Cord as India imports ~2L MT

Management Commentary & Growth Outlook

Strategic Outlook: "For H2FY27, we will stay with what worked this half. Our priorities are higher utilisation at Dadri and a richer mix, funded largely from internal accruals." - Mr. Pranav Bansal, MD & CEO

FY Guidance: Targeting ~20% EBITDA growth CAGR; aiming for 25%+ ROCE; planned capex of ₹200-225 crore per annum

Market Share Targets: No. 1 in stainless steel wire segment by volume; No. 2 in steel wire player in India by volume

Risks and Opportunities: Expanding into specialty wires with large import substitution opportunity (India imports ~2L MT of steel tyre cord)

ESG Updates

  • Environment: 7.5 MW Rooftop solar (Dadri + Bahadurgarh); Zero liquid discharge; ETP-400 KLD at Dadri; 90% reduction in acid use in strand pickling; Acid-free sand-belt surface preparation for steel cord; 60 lakh L Rainwater harvesting pond
  • Social: 5,848 People (4,798 permanent, 1,050 contract); ₹2.67 crore CSR spend FY26; Health initiatives including oncology unit, medical university, dialysis support; Skills vocational training programme
  • Governance: 4 of 7 Board members independent (FY26 year-end); 3 of 3 Audit Committee members independent; A+/Stable CRISIL long-term rating, reaffirmed Oct 2025; 6 Board committees

Market Snapshot & Shareholding Pattern

  • BSE/NSE Ticker: 544209 / BANSALWIRE
  • Stock Price (₹): 323.45 (Pre-Split), 64.69 (Post-Split)
  • Market Cap (₹ Crore): 5,063.8
  • Outstanding Shares: 15,65,55,952 (Pre-Split), 78,27,79,760 (Post-Split)
  • Face Value (₹): 5 (Pre-Split), 1 (Post-Split)
  • 52 Week High/Low (₹): 370.0/222.5 (Pre-Split), 74.0/44.5 (Post-Split)
  • Stock split: 1:5 approved on 12 Aug 2026, effective 16 Oct 2026