Bansal Wire margins recover to ₹7-8/kg; guides 20% volume growth
Q1 EBITDA fell 26% YoY on gas cost spike, but MD says profitability bounced back from mid-May. Trial order from tyre major in hand, B2C now 10% of sales.
— 2 earlier stories on Bansal Wire Industries Ltd. →What's new
- Operating profit recovered to ₹7-8/kg from mid-May after gas cost spike hit Q1.
- Management reiterated 20% volume growth guidance for rest of FY27.
- First trial steel-cord order received from leading Indian tyre maker during the quarter.
Why this matters
The Q1 miss was a gas-cost one-off, not a demand problem. The recovery in margins from mid-May and the 20% volume guidance signal that the underlying demand story remains intact. The trial order from a top tyre maker is a tangible step in diversifying into steel cord, a higher-value product.
What we're watching
- Whether trial orders convert into regular supply contracts with tyre majors.
- Execution of 20% volume growth amid broader industrial demand trends.
- Any follow-up on the B2C segment's path from 10% to a higher share of sales.
The full read
Bansal Wire's Q1 was rough: EBITDA fell 26% to ₹45 crore as gas costs spiked and non-automotive demand stayed soft. But the bad news is backward-looking. From mid-May, operating margins recovered to ₹7–8 per kilogram, and management stuck by its 20% volume growth guidance for the rest of FY27, citing a broad demand revival and market share gains. The call also confirmed a first trial order from a leading tyre maker for steel cord, a new, higher-margin product. The transcript adds nothing the market didn't already hear live, but it reinforces that the temporary margin squeeze is behind the company. The question now is conversion: trial orders into contracts, and volume guidance into delivery.
Questions answered
- Why did Bansal Wire's Q1 EBITDA fall 26% despite revenue growth?
- The first half of the quarter saw a temporary spike in industrial gas costs and other consumables, compressing margins. Management said profitability recovered to ₹7-8/kg from mid-May onward.
- What is the status of the steel cord business?
- Bansal Wire received its first trial order from a leading Indian tyre manufacturer during the June quarter, following qualification delays after a fire at its Dadri shed in October 2025.
- Is the 20% volume growth guidance for FY27 new?
- No, it was reiterated on the call as consistent with prior guidance. The transcript confirms management's confidence in demand revival, market share gains, and new product ramp-up.
Bansal Wire Industries Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on BANSALWIRE →- 28 Jul 2026 · 5:54 PM IST Bansal Wire margins recover to ₹7-8/kg; guides 20% volume growth
- 34d ago Bansal Wire promoter to sell 2.99% stake to meet public shareholding norms
- 45d ago Bansal Wire lands trial order from leading tyre maker