BANSALWIRE - Bansal Wire Inds
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 42.2% YoY to INR 3,507.17 Cr in FY25. H1 FY26 revenue reached INR 1,994.4 Cr, a 21% increase YoY. Stainless steel wire sales specifically increased by more than 20% in Q2 FY26 compared to Q1 FY26.
Geographic Revenue Split
The company is primarily domestic-focused with exports contributing 9% of total revenue in Q2 FY26. The remaining 91% is generated within India.
Profitability Margins
Net Profit Margin was 4.16% for FY25. Return on Equity (ROE) stood at 16.92% for FY25, though it adjusted to 11.9% in H1 FY26 following the IPO equity infusion.
EBITDA Margin
EBITDA margin was 7.07% in FY25, with absolute EBITDA growing 86.4% YoY to INR 278.21 Cr. H1 FY26 EBITDA stood at INR 156 Cr, representing a 19.7% YoY increase.
Capital Expenditure
The company raised INR 745 Cr through an IPO in July 2024 to fund growth and debt reduction. Management aims for INR 600 Cr+ positive cash flow from operations over FY26 and FY27 combined to fund future requirements.
Credit Rating & Borrowing
CRISIL upgraded the long-term rating to 'CRISIL A+/Stable' from 'CRISIL A/Stable' and reaffirmed 'CRISIL A1' for short-term. Interest coverage ratio is healthy at 6.56x as of FY25.
Operational Drivers
Raw Materials
Key raw materials include stainless steel, high carbon steel, and low carbon steel. Specific percentage of total cost for each is not disclosed, but they are the primary input for all wire products.
Capacity Expansion
Current installed capacity is 6,18,000 MTPA across 5 manufacturing facilities. The Dadri plant, which started commercial operations in February 2024, is a key driver for future volume growth.
Raw Material Costs
Raw material costs are a significant portion of the cost structure; the company employs a pass-through mechanism to mitigate price volatility, though sudden spikes can impact short-term margins.
Manufacturing Efficiency
Capacity utilization stood at 74% in H1 FY26. The company is targeting higher utilization at the new Dadri plant to gain operating leverage.
Logistics & Distribution
Freight costs are identified as a monitorable risk factor that can impact operating margins if not managed effectively.
Strategic Growth
Expected Growth Rate
20-25%
Growth Strategy
Growth will be driven by ramping up the Dadri plant, commercializing specialty products like steel cord for the tire industry by mid-2026, and shifting the product mix toward high-margin specialty wires to achieve a 25% ROCE target by FY27.
Products & Services
Specific products include stainless steel wires, bead wires, high carbon wires, low carbon wires, and upcoming steel cord for tire reinforcement.
Brand Portfolio
Bansal Wire.
New Products/Services
Steel cord is in the sampling phase with two major tire companies, with commercialization expected by mid-2026.
Market Expansion
The company is doubling down on its core business and specialty wires, moving away from lower ROC investments to create a self-sustaining growth model.
Market Share & Ranking
Bansal Wire is the largest stainless steel wire manufacturer and the second largest steel wire manufacturer by volume in India.
External Factors
Industry Trends
The industry is seeing a shift toward value-added specialty wires. Bansal Wire has achieved a revenue CAGR of 19.8% over FY14-24, outpacing general industrial growth.
Competitive Landscape
The company competes in a fragmented market but maintains a top-2 position by volume in India.
Competitive Moat
The moat is built on massive scale (6.18 Lakh MTPA), a diversified base of 5,000+ customers, and market leadership in the stainless steel wire segment.
Macro Economic Sensitivity
Demand is linked to industrial growth and infrastructure spending; however, specific GDP sensitivity percentages are not disclosed.
Consumer Behavior
There is an increasing demand for high-quality specialty wires in the automotive and tire sectors, which the company is targeting with its new steel cord line.
Geopolitical Risks
CBAM (Carbon Border Adjustment Mechanism) compliance is critical for maintaining export competitiveness in European markets.
Regulatory & Governance
Industry Regulations
Operations are subject to standard manufacturing and pollution norms; the company maintains a robust internal financial control system to ensure compliance.
Environmental Compliance
The company holds a CBAM certificate, indicating compliance with international carbon reporting standards for steel products.
Taxation Policy Impact
Total tax expense for FY25 was INR 63.88 Cr on a consolidated basis.
Legal Contingencies
The secretarial audit noted minor procedural lapses, such as late filing of certain forms with the ROC, which management clarified as procedural only.
Risk Analysis
Key Uncertainties
Key risks include steel price volatility and freight cost fluctuations, which could impact the target of 20-25% absolute EBITDA growth.
Geographic Concentration Risk
91% of revenue is domestic, creating a concentration risk relative to the Indian economy, though mitigated by a 5,000+ customer base.
Third Party Dependencies
Low dependency on specific customers due to the large client base, but high dependency on steel suppliers for raw material consistency.
Technology Obsolescence Risk
Low risk in the wire drawing industry, but the company is upgrading technology for the specialty steel cord segment.
Credit & Counterparty Risk
Receivables are managed with a debtors turnover of 8.41x; the introduction of channel financing aims to further reduce credit risk.