Bansal Wire Industries Limited has received a favorable outcome in its GST appeal, with the tax liability being completely eliminated for the financial year 2018-19. The company disclosed this development under Regulation 30 of SEBI Listing Regulations on February 10, 2026.

GST Appeal Outcome

The Additional Commissioner Grade-II Appeal (Appellate Authority) ruled in favor of the company on February 09, 2026. The appeal order has reduced the company's tax liability from ₹63,52,999 to nil, effectively eliminating any tax demand, penalty, or interest obligations.

Background of the Case

The GST assessment order was originally issued by the Joint Commissioner, SGST, Corporate Circle-I, Ghaziabad Zone-I for Tax, Interest and Penalty under Section 74 of the CGST/SGST Act, 2017. The alleged violations included:

• E-way bill related issues
• Availment of blocked and excess Input Tax Credit (ITC)
• Non-payment of tax on sale of RODTEP license

The company had previously informed the stock exchanges about its intention to file an appeal against this assessment order on November 08, 2025.

Financial and Operational Impact

The company has confirmed that this favorable order has no financial, operational, or other business impact on the listed entity. The elimination of the tax liability means no monetary outflow is required, and the company's financial position remains unaffected.

Compliance Framework Validation

The favorable appeal order reaffirms Bansal Wire Industries' strong compliance framework. The company emphasized that this outcome validates its adherence to regulatory requirements and proper tax compliance procedures. The ruling supports the company's position that the alleged violations were unfounded.

The company has made this disclosure available on its website at www.bansalwire.com and has fulfilled its regulatory obligations under SEBI Listing Regulations by informing both BSE and NSE about this development.

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.