Bansal Wire Industries Limited , a leading manufacturer of steel wires, has received a significant reprieve in its GST assessment for the financial year 2018-19. The company's tax liability has been drastically reduced from Rs 126.93 crore to Rs 6.35 crore, marking a 95% reduction in the original assessment.

Revised Assessment Details

The revised GST assessment order breaks down the liability as follows:

This substantial reduction comes as a relief for Bansal Wire Industries, potentially easing financial pressures and improving its fiscal outlook.

Case Background

The GST case against Bansal Wire Industries involved alleged violations related to:

1. E-way bill issues
2. Availment of blocked and excess Input Tax Credit
3. Non-payment of tax on the sale of RODTEP (Remission of Duties and Taxes on Exported Products) license

Company's Response

Despite the significant reduction in liability, Bansal Wire Industries plans to file an appeal with the appropriate appellate authority. The company believes that certain aspects of the assessment require further review, indicating its commitment to ensuring a fair and accurate tax assessment.

Impact on Operations

In its communication to stakeholders, Bansal Wire Industries has stated that this development has no material impact on its financial, operational, or other activities. This suggests that the company's day-to-day operations and overall financial health remain stable despite the ongoing tax matter.

Looking Ahead

As Bansal Wire Industries prepares to file its appeal, the final outcome of this tax case remains to be seen. The substantial reduction in tax liability, however, is likely to be viewed positively by investors and market analysts.

The company's proactive approach in addressing tax issues and its plans for further appeal demonstrate a commitment to financial transparency and responsible corporate governance. This aligns with Bansal Wire Industries' broader strategy of maintaining strong financial health while pursuing growth opportunities in the steel wire sector.

Investors and stakeholders will be watching closely as this tax matter unfolds, particularly for any potential impacts on the company's future financial statements and growth plans.

Bansal Wire Industries Limited , a key player in the wire manufacturing sector, has announced impressive financial results for the second quarter of fiscal year 2026, showcasing robust growth and operational achievements.

Financial Highlights

The company reported a significant 27.00% year-on-year increase in revenue, reaching ₹1,055.00 crores for Q2 FY26. This growth was accompanied by a 20.00% rise in EBITDA to ₹81.58 crores. However, the Profit After Tax (PAT) saw a slight decline of 4.30%, settling at ₹38.30 crores, primarily due to higher subsidization.

Operational Performance

Bansal Wire Industries achieved its highest ever quarterly volume at 1.14 lakh tons, compared to 1.04 lakh tons in the previous quarter. This record-breaking production volume underscores the company's operational efficiency and growing market demand.

H1 FY26 Performance

For the first half of FY26, the company's performance remained strong:

Strategic Developments

Product Approvals

Bansal Wire received two sample approvals from major tire companies for steel cord products, with commercialization expected by mid-next year.

B2C Segment Penetration

The company has successfully entered the B2C segment, which now contributes 5% of total revenue with better margins compared to the B2B segment.

Capacity Utilization

With a total installed capacity of 6.18 lakh tons, the company is operating at 74% capacity utilization.

Future Outlook

Bansal Wire Industries has set the following targets:

• 30-40% volume growth for the current fiscal year
• Over 20% EBITDA growth
• Aim to achieve 25% Return on Capital (ROC) by 2027
• Target of ₹600.00 crores positive cash flow over the current and next fiscal year combined

The company's strong performance in Q2 FY26, coupled with its strategic initiatives and future targets, positions Bansal Wire Industries for continued growth in the wire manufacturing sector. The focus on expanding into the B2C segment and potential commercialization of new products for the tire industry could further diversify its revenue streams and enhance profitability.