Bansal Wire Posts Modest Profit, Faces ₹203 Cr GST Threat

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AuthorAnanya Iyer|Published at:
Bansal Wire Posts Modest Profit, Faces ₹203 Cr GST Threat
Overview

Bansal Wire Industries reported a 3.8% net profit increase to ₹43.2 crore for Q3, driven by 11.4% revenue growth. EBITDA surged nearly 20% to ₹85.5 crore, expanding margins to 8.3%. However, the company is contesting a ₹202.77 crore GST notice for FY21, though management deems it non-material. Shares closed down 1.46% on NSE.

Q3 Earnings Show Steady Growth

Bansal Wire Industries posted a 3.8% year-on-year increase in net profit for the December quarter, reaching ₹43.2 crore. This growth was underpinned by a solid 11.4% rise in revenue, which climbed to ₹1,029 crore from ₹924 crore in the prior year.

Operating Performance Surges

The company's operating performance outpaced net profit growth, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumping 19.7% year-on-year to ₹85.5 crore. This robust increase in operating profitability translated into an expansion of EBITDA margins by 60 basis points, reaching 8.3% compared to 7.7% in the same quarter last year. These gains suggest improved operating leverage and cost efficiencies.

GST Notice Poses Legal Challenge

Despite the positive operational results, Bansal Wire Industries is facing a significant legal challenge. In December 2025, the company received a show-cause notice from the Joint Commissioner, SGST, Ghaziabad, demanding ₹202.77 crore for the fiscal year 2021. The demand comprises ₹69.19 crore in tax, ₹64.39 crore in interest, and a penalty of ₹69.19 crore.

The notice cites issues related to e-way bills, the availment of blocked and excess input tax credit, and alleged non-payment of tax on RODTEP licences. The company has firmly stated that these claims are untenable and intends to file a comprehensive response within the stipulated deadlines. Management has publicly reassured stakeholders that the notice will not have a material impact on the company's financials or ongoing operations, noting that a similar notice for FY20 was resolved with a negligible financial outflow.

Market Reaction

Shares of Bansal Wire Industries Limited closed lower on the National Stock Exchange (NSE), declining by ₹4.45, or 1.46%, to settle at ₹300.00. The stock's performance reflected broader market pressures and investor caution regarding the ongoing tax dispute, despite the company's efforts to mitigate concerns.

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