Bansal Wire Industries Limited reported a 48% decline in consolidated net profit to ₹204.61 million for the quarter ended June 30, 2026, compared to ₹392.79 million in the corresponding period of the previous year. The steel wire manufacturer saw revenue from operations increase 24.4% to ₹11,678.91 million from ₹9,390.07 million in Q1 FY26. Despite the profit contraction caused by rising input costs and operational disruptions from geopolitical tensions in West Asia, management raised its combined free cash flow guidance for operating activities to ₹800 crore for FY27 and FY28, up from the previous ₹600 crore target. This signals strong underlying cash generation capabilities despite short-term margin pressures.

Q1 FY27 Financial Performance

The company’s standalone net profit for the quarter stood at ₹164.81 million, down from ₹302.79 million in the same period last year. Total income for the standalone entity rose to ₹11,358.17 million, while consolidated total income reached ₹11,682.40 million. Profit before exceptional items and tax for the consolidated entity was ₹260.37 million, down from ₹500.04 million in Q1 FY26. EBITDA, which includes other income, declined to ₹567.07 million from ₹744.55 million. The following table summarises the key consolidated financial metrics:

*EBITDA Includes Other Income

Operational Disruptions and Cost Management

The profit decline was primarily driven by a temporary spike in industrial gas prices due to geopolitical tensions in West Asia, which impacted the first half of the quarter. Managing Director Pranav Bansal explained that consumable costs increased by approximately ₹5,000 per tonne on a blended basis. To support long-term customer relationships, the company chose not to renegotiate existing firm-rate orders covering a 30–40 day inventory cycle, absorbing the cost hit. This decision compressed EBITDA margins to ₹2 per kg during the first 45 days, compared to the normal ₹7–8 per kg.

However, new orders booked after the price hike were priced accordingly, restoring margins to ₹7–8 per kg in the latter half of the quarter. Sales volume reached 112,000 metric tonnes, up from 104,000 metric tonnes in Q1 FY26. Operating capacity currently stands at 680,000 tonnes, with operations returning to normal levels as gas availability stabilised.

Strategic Expansion and Specialty Wires

Bansal Wire continues to advance its specialty wire portfolio, aiming for a 200,000-tonne capacity with an investment of ₹2,000–2,500 crore. The company targets ₹600–800 crore in EBITDA from this segment, maintaining a 25% ROCE across both specialty and current operations. Key developments include:

• Steel Cord: Secured first trial order from a leading Indian tyre manufacturer, skipping field trials due to positive sample approvals. Commercialisation is expected within 6–8 months.
• IHT/OHT Wires: IHT capacity stands at 9,000 tonnes, expanding to 15,000 tonnes with OHT commissioning by year-end. Targeting 50% utilisation next month and 60–80% by year-end.
• B2C Segment: New products in farming, fencing, and poultry contributed ~10% of sales in Q1. The segment aims to reach 25% of total sales (50% of low-carbon volume), offering 20–30% higher EBITDA per tonne than B2B low-carbon wires.

Cash Flow and Balance Sheet Strength

Despite margin pressures, the company generated ₹1,211 million in operating cash flow for Q1 FY27, compared to ₹975 million in Q1 FY26. The operating cash flow to EBITDA ratio stood at 214%. Management attributed this to disciplined working capital management, including reduced inventory days and renegotiated receivable terms. The net debt to EBITDA ratio improved to 1.68 in FY26 from 4.53 in FY24, while debt to equity reduced to 0.39 from 1.48. ROCE for Q1 FY27 was 10.15%, moderating from 15.37% in Q4 FY26 due to temporary disruptions.

Outlook and Guidance

Management maintains its target of 20% volume growth for the remainder of FY27, supported by market share gains and specialty portfolio contributions. EBITDA is expected to grow by at least 20%. Capex for FY27 is capped at ₹200–250 crore, focusing on incremental capacity rather than large-scale expansions outside the specialty segment. The company plans to sustain ₹200–250 crore annual capex to support 20–25% volume growth, leveraging backward integration in machinery manufacturing for flexibility.

The Joint Commissioner of State Tax (Appeals), Cum-Appellate Authority in Rohtak has accepted an appeal filed by Bansal Steel & Power Limited (BSPL), a wholly owned subsidiary of bansal wire industries , reducing a Goods and Services Tax (GST) interest demand to NIL. The order, received on July 25, 2026, resolves a long-standing tax dispute concerning input tax credit (ITC) claims from the financial year 2017-18, eliminating a potential liability of ₹16,88,804 for the subsidiary. This outcome confirms that the case carries no residual financial, operational, or business impact on the parent company, providing clarity on a regulatory matter disclosed over a year ago.

The resolution follows a series of regulatory actions initiated by tax authorities against BSPL. In February 2025, Bansal Wire Industries Limited informed stock exchanges that BSPL had received a GST Notice in Form GST DRC-07 under Section 74 of the GST Act, 2017. The original notice imposed a penalty of ₹50,99,895 along with a tax liability of ₹57,77,896 and interest of ₹89,94,666. Subsequently, the tax authorities issued a rectification demand for ₹16,88,804 in interest, while reducing the principal GST liability to NIL. This rectification was previously disclosed by the company in its Integrated Corporate Governance Report submitted to the stock exchanges.

Regulatory Proceedings and Outcome

The final order was issued under Section 107 of the CGST/SGST Act, 2017 read with Section 20 of the IGST Act, 2017. The appellate authority reviewed BSPL’s appeal against the remaining interest demand of ₹16,88,804 and ruled in favor of the subsidiary. The order explicitly states that the interest demand is reduced to NIL and that the case is now closed. The company received the order at 10:44 A.M. IST on July 25, 2026.

Compliance Disclosure

Bansal Wire Industries Limited made this disclosure in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company emphasized that the closure of this matter ensures there are no pending liabilities related to this specific GST notice. Sumit Gupta, Company Secretary and Compliance Officer of Bansal Wire Industries Limited, signed the intimation, which was simultaneously made available on the company’s website. The successful resolution removes a contingent liability from the books of its subsidiary, reinforcing the company’s compliance standing with tax authorities.