Bansal Wire Industries reported a strong Q2 FY27 with revenue rising 24% to Rs 1,308 crore and net profit climbing 38% to Rs 53 crore. The company achieved record EBITDA per ton, successfully reduced debt by 40% in H1, and is aggressively expanding capacity at its Dadri and Sanand facilities. Management remains optimistic about 20% volume growth in H2, supported by new value-added segments like steel tyre cord, despite minor short-term raw material supply constraints.
Bansal Wire Industries Q2 Profit Climbs 38% Amid Capacity Expansion
Revenue reached Rs 1,308 crore; Net profit stood at Rs 53 crore.
Reader Takeaway: Strong operational efficiency and debt reduction are balanced by short-term raw material supply chain fluctuations.
What just happened
Bansal Wire Industries has delivered a robust performance for the quarter ended September 30, 2026. The company reported a 24% year-on-year increase in revenue to Rs 1,308 crore and a 38% surge in net profit to Rs 53 crore. EBITDA also saw a healthy 29% rise to Rs 105 crore. A significant highlight for the period was the 40% reduction in total debt over the last six months, bringing it down to approximately Rs 300 crore.
Why this matters
The company achieved its highest-ever EBITDA per ton of approximately Rs 8,150. Management credits this performance to economies of scale and improved operational efficiency at the Dadri facility. Shareholders are closely watching the successful ramp-up of this site and the upcoming greenfield project in Sanand, which will collectively push total capacity to 8.3 lakh tons by next year.
Capacity Expansion and Strategy
Bansal Wire is currently working on a 60,000-ton expansion in Dadri, expected to be completed by Q4. Simultaneously, the new 90,000-ton capacity project in Sanand is underway. A key strategic shift is the entry into the steel tyre cord segment, where the company has already received initial trial orders and expects commercialization within this fiscal year.
Risks to watch
Management noted a temporary shortage of wire rods in October, caused by supplier production shifts and minor facility breakdowns. While considered a short-term issue, it remains a factor for H2 production. Furthermore, margin guidance of Rs 7,000–Rs 7,500 per ton is susceptible to global geopolitical volatility affecting input costs.
What to track next
Investors should monitor the scaling of the steel tyre cord business and B2C offerings. Maintaining the 25% long-term Return on Capital Employed (ROCE) target remains the management's key performance indicator as the company balances a planned annual capital expenditure of Rs 200–225 crore.