Bansal Wire Industries Limited , a manufacturer of steel wires, has received a significant Show Cause Notice (SCN) from the SGST authorities on December 1, 2025. The notice, issued under the SGST/CGST Act, 2017, raises concerns over the company's tax practices for the financial year 2020-21.

Details of the Show Cause Notice

The SCN primarily addresses three key issues:

1. E-waybill issues
2. Input Tax Credit (ITC) availment
3. Non-payment of tax on the sale of RODTEP (Remission of Duties and Taxes on Exported Products) license

Financial Implications

The total claim outlined in the notice amounts to ₹2,027.70 crore, broken down as follows:

Company's Response

Bansal Wire Industries has stated that the Show Cause Notice is "untenable." The company is currently reviewing the SCN and evaluating its compliance obligations. In its disclosure, the company expressed confidence that there would be no material impact on its financial, operational, or other activities.

Next Steps

The company has confirmed that it will prepare an appropriate response to the notice. This approach demonstrates Bansal Wire Industries' commitment to addressing regulatory concerns and maintaining transparency with its stakeholders.

Market Implications

While the potential financial liability is significant, the company's stance and expectation of no material impact may help mitigate immediate market concerns. However, investors and market analysts will likely monitor how this situation develops, as it could potentially affect the company's financial position and market perception.

Bansal Wire Industries , a prominent player in the wire manufacturing industry, has released its quarterly financial results, showcasing a mixed performance with notable revenue growth but a slight dip in profitability.

Revenue and EBITDA Show Positive Momentum

The company reported a significant increase in its quarterly revenue, demonstrating strong top-line growth:

The substantial 27.88% year-over-year increase in revenue indicates robust demand for Bansal Wire Industries' products and potentially an expansion in market share or product lines.

Profitability and Margin Analysis

Despite the impressive revenue growth, the company faced some challenges in maintaining its profit margins:

The EBITDA margin saw a slight decline of 0.44 percentage points, dropping from 7.74% to 7.30%. This suggests that while the company managed to grow its operations significantly, it faced some pressure on operational efficiency or increased costs.

Bottom Line Performance

The consolidated net profit for the quarter stood at ₹383 million, marking a 3.28% decrease from the ₹396 million reported in the same period last year. This decline in profitability, despite higher revenue and EBITDA, could be attributed to various factors such as increased financial costs, higher depreciation, or tax implications.

Conclusion

Bansal Wire Industries' Q2 results paint a picture of a company experiencing strong growth in its core business, as evidenced by the substantial increase in revenue. However, the slight erosion in EBITDA margin and the dip in net profit suggest that the company may be navigating through a phase of expansion or facing industry-wide cost pressures.

Investors and analysts will likely keep a close eye on how Bansal Wire Industries manages to balance its growth trajectory with profitability in the coming quarters. The company's ability to improve operational efficiency and translate top-line growth into bottom-line results will be crucial for its financial performance moving forward.