Bansal Wire absorbed gas shock but reversed steel cord and land strategy
Q1 revenue rose 25% as margin recovered to ₹7-8 per kg, but steel cord qualification was pushed out 6-8 months and Sanand land sale plans were softened — two reversals without explanation.
What's new
- Q1 revenue ₹1,168 cr, up 25% YoY; volume 1.1 lakh tons vs 1.0 lakh tons.
- Gas shock cut EBITDA to ₹2 per kg in first 45 days; recovered to ₹7-8 per kg on new orders.
- Steel cord now faces 4 trial stages, each 2-3 months, pushing commercial orders to H2 FY27 or later.
- B2C low-carbon wires hit 10% of sales; target is 25% of total sales.
Themes from the call
Demand
Demand recovered across most sectors late in Q1; automotive remained strong, exports improved, but infrastructure was seasonally weak.
Margins
EBITDA per kg swung from ₹2.0 in the gas-affected period to ₹8.0 in the second half as cost-pass-through on new orders kicked in.
Capital allocation
Management softened the Sanand land monetization plan — earlier said sell 50%, now says only excess part. Regular capex capped at ₹200-250 cr annually.
Guidance watch
- FY27 volume growth of 20% for remaining three quarters (specific point estimate).
- FY27 EBITDA growth of at least 20% (floor, not a target).
- FY27 operating cash flow target of ₹350 cr.
- IHT utilization targeted at 50% next month, OHT commissioning by year-end.
- Steel cord trial stages expected to take 6-8 months before commercial orders.
Risk flags
- Steel cord qualification timeline was reversed and extended without explanation, jeopardizing the import-substitution narrative.
- Sanand land monetization plan was softened, reducing a previously stated source of cash.
- IHT at 35-40% utilization generated no meaningful EBITDA; profitability depends on scaling.
- Gas prices remain elevated and availability is external, posing a recurring input risk.
Key quotes
-
"There will not be a Phase-II trial process. It will only be a sample and then sale of this."
— Pranav Bansal, MD & CEO, Apr 2026 call -
"There are four stages of trials to be held in this case. With a couple of months for each trial, I think we will get there."
— Pranav Bansal, MD & CEO, Jul 2026 call
The brief
Bansal Wire's Q1 numbers show a business that can absorb a shock. Revenue rose 25% to ₹1,168 crore and volume grew 10% despite a natural gas crisis that pushed costs up 1.5 times on a blended basis. EBITDA per kg collapsed to ₹2.0 during the first 45 days as the company honored fixed-rate orders, then rebounded to ₹8.0 once revised pricing took effect. Management now expects the three remaining quarters to deliver volume growth of 20% and EBITDA growth of at least 20%. The gas shock has been absorbed. But the call contained two material reversals that the company did not explain. The first is steel cord. In April management said a leading tyre customer had completed Phase II trials and that only a sample stood between the company and commercial sales. In July management described a four-stage trial process that will take 6-8 months. The second is the Sanand land. In April management said it would sell the remaining 50% of the land to raise cash. In July it said the site is part of expansion and only excess land might be sold. Both reversals undermine the credibility of prior guidance. The specialty wire portfolio — IHT, OHT, and steel cord — is central to the re-rating case. Each delay pushes that case further out. The core wire business is good but not special. Bansal Wire absorbed the gas shock. The strategy reversals are the open question that needs a bridge.
Bansal Wire absorbed the gas shock. The strategy reversals are the open question.