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.

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 manufacturer of steel wires saw revenue from operations increase 24.4% to ₹11,678.91 million from ₹9,390.07 million in Q1 FY26. However, profitability was impacted by rising input costs and operational disruptions, which narrowed EBITDA margins. The Board of Directors approved the unaudited standalone and consolidated financial results on July 22, 2026.

Q1 FY27 Financial Performance

The company's standalone net profit for the quarter stood at ₹164.81 million, a decrease from ₹302.79 million in the same period last year. Total income for the standalone entity rose to ₹11,358.17 million. On a consolidated basis, 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. The following table summarises the key consolidated financial metrics for the quarter:

*EBITDA Includes Other Income

Operational Highlights and Expenses

The increase in revenue was accompanied by a significant rise in operational costs. Cost of materials consumed in the consolidated results increased to ₹9,208.79 million from ₹7,309.73 million. Employee benefits expense rose to ₹469.49 million, and finance costs increased to ₹154.65 million. Depreciation and amortization expenses also grew to ₹152.05 million. These factors collectively contributed to the contraction in overall profitability despite higher topline growth. The company delivered 1,11,962 MT during the period, reflecting a strong recovery in execution after geopolitical tensions in West Asia impacted demand and industrial gas supplies in the first half of the quarter.

Strategic Developments and Capacity Expansion

In post-results concall updates, Bansal Wire Industries outlined detailed financial targets for its specialty wire ambitions. The company expects its 200,000-tonne specialty wire business to generate ₹600–800 crore in EBITDA, backed by a planned investment of ₹2,000–2,500 crore, with a target of 25% ROCE across both specialty and current operations. The following table captures the key parameters of this strategic plan:

The capacity scale-up is anchored by a 20,000 TPA pilot project with customer approvals currently underway. The company also stated its broader goal to create between 25 to 250 new products, signalling a significant expansion of its product portfolio. Bansal Wire reported annual growth of approximately 20%, outpacing the industry growth rate of 7–8%, while declining to renegotiate current orders even at the cost of accepting financial losses. The company had already secured its first trial purchase order for its product "Steel Tyre Cord" from a leading Indian tyre manufacturer, marking a step towards commercialisation in an import-dependent market. The IHT Wire business continued to progress with customer approvals underway, and the company broadened its B2C footprint by introducing new products in the farming, fencing, and poultry segments.

Management Guidance and Outlook

Management provided updated guidance across multiple business dimensions during the post-results concall. On the B2C front, the segment's ambition is to contribute 50% of the low-carbon business volume, equating to 25% of total sales, with 20–30% higher EBITDA per ton compared to B2B low-carbon. For IHT/OHT wires, management aims for 50% capacity utilization next month, with optimum utilization targeted within the year—specifically 60–80% by year-end for IHT. The following table summarises the key guidance parameters:

Management raised its combined free cash flow guidance from operating activities to ₹800 crore for FY27 and FY28, up from the previous ₹600 crore guidance. The company is targeting 20% volume growth for the remainder of the year, supported by market share gains, specialty portfolio contributions, and sufficient installed capacity. EBITDA is expected to grow by at least 20%, aligning with volume growth, despite starting the quarter with a higher EBITDA base.

Financial Strength and Cash Flow

The company reported an operating cash flow of ₹1,211 million for Q1 FY27, compared to ₹975 million in Q1 FY26. The operating cash flow to EBITDA ratio stood at 214% for the quarter. The net debt to EBITDA ratio improved to 1.68 in FY26 from 4.53 in FY24, while the debt to equity ratio reduced to 0.39 in FY26 from 1.48 in FY24. The Return on Capital Employed (ROCE) for Q1 FY27 was 10.15%, moderating from 15.37% in Q4 FY26 due to temporary disruptions.

Board Approvals and Auditor Appointments

During its meeting on July 22, 2026, the Board approved the appointment of M/s Ashish & Associates, Cost Accountants, as Cost Auditors for the financial year 2026-27. Additionally, M/s S N Garg & Co., Chartered Accountants, were appointed as Internal Auditors for FY27. The statutory auditors, Prateek Gupta & Company, provided an unmodified opinion on the unaudited financial results. The company has two wholly owned subsidiaries, Bansal Steel & Power Limited and BWI Steel Private Limited.