Bansal Wire Industries has received a BUY rating from Anand Rathi with a target price of ₹360, as the brokerage remains optimistic about the company's expansion strategy and presence across the steel-wire value chain.

Capacity Expansion Plans

The company is undertaking significant expansion through greenfield and brownfield projects at its Sanand and Dadri facilities. These initiatives are designed to augment the installed capacity by approximately 24% to 0.77 million tonnes over the next 2-3 years.

New Production Units and Timeline

Bansal Wire Industries has commissioned a 9,000-tonne IHT specialty wire unit, which is expected to achieve 40% utilisation by FY26. Additionally, the company plans to establish a 6,000-tonne OHT facility, likely to be commercialised by Q3FY27.

Steel Tyre Cord Development

The company expects Phase-I approval for steel tyre cord from one tyre manufacturer within the next two weeks, while Phase-II field trial is likely to begin soon. This unit is expected to commercialise by mid-FY27, representing a delay of approximately 1-2 months due to a recent fire incident at the Dadri unit.

Revised Financial Estimates

Due to the phased rollout of enhanced capacities over the next two years, Anand Rathi has adjusted its financial projections. The brokerage has trimmed EBITDA estimates for FY27/28 by 5.60%/8.10% and APAT estimates by 12%/14%, primarily due to higher depreciation and finance costs associated with the expansion activities.

Investment Outlook

Anand Rathi continues to maintain a positive outlook on Bansal Wire Industries, citing the company's presence across the steel-wire value chain and focus on high RoCE segments. The brokerage notes management's guidance for surpassing ₹8,000 EBITDA per tonne, supporting the BUY rating with a target price of ₹360, valuing the stock at 1.15x FY28 PEG.

Bansal Wire Industries reported steady Q3 financial performance with net profit rising 3.8% year-on-year to ₹43.2 crore, while simultaneously addressing a significant GST notice from tax authorities. The steel wire manufacturer demonstrated operational resilience with strong EBITDA growth despite regulatory challenges.

Q3 Financial Performance Overview

The company delivered consistent growth across key financial metrics for the December quarter. Revenue increased 11.4% year-on-year to ₹1,029 crore from ₹924 crore in the corresponding period last year, reflecting stable demand across its steel wire product portfolio.

Strong Operating Performance and Margin Expansion

Operating performance showed significant improvement with EBITDA rising 19.7% year-on-year to ₹85.5 crore, up from ₹71.4 crore in the previous year. The company achieved EBITDA margin expansion of 60 basis points to 8.3% compared with 7.7% in Q3 last year. The margin gains indicate better operating leverage and cost efficiencies amid a challenging input cost environment for metal manufacturers.

GST Notice and Regulatory Challenge

In December 2025, the company received a show-cause notice from the Joint Commissioner, SGST, Ghaziabad, seeking ₹202.77 crore for FY21. The notice breakdown includes:

The notice pertains to issues related to e-way bills, availment of blocked and excess input tax credit, and alleged non-payment of tax on the sale of RODTEP licences. The company has maintained that the claims are untenable and will file an appropriate response within prescribed timelines.

Management Response and Market Impact

Management stated there is no material impact on the company's financials, operations or ongoing activities arising from the notice. The company referenced that a similar notice for FY20 was resolved with negligible outflow, providing confidence in their ability to contest the current notice effectively.

Shares of Bansal Wire Industries closed down at ₹300.00 on the NSE, declining by ₹4.45 or 1.46%, reflecting market concerns over the regulatory development despite strong operational performance.