Bansal Wire Stock Dips 5% on Q3 Revenue Fall; Analysts See Upside
Overview
Bansal Wire Industries faced selling pressure Wednesday, with shares tumbling nearly 5% after reporting a 2.5% sequential drop in Q3 FY26 revenue. Despite this near-term setback, the company posted healthy year-on-year growth in revenue and profit. Analysts at Anand Rathi Research maintain a 'Buy' rating, citing long-term potential and a strong market position, while acknowledging moderating future estimates.
Stocks Mentioned
Stock Suffers Post-Q3 Results
Shares of steel wire manufacturer Bansal Wire Industries saw a significant drop on Wednesday, falling as much as 5.38% to an intraday low of ₹272.4 on the NSE. This decline followed the company's announcement of a 2.5% quarter-on-quarter decrease in its revenue from operations for the third quarter of fiscal year 2026.
Q3 Performance Metrics
The company reported revenue from operations at ₹10,290 crore for Q3FY26, down from ₹10,554 crore in the preceding quarter. However, on a year-on-year basis, revenue saw a substantial increase of 11.3%, reaching ₹9,246 crore in the same period last year. Profit after tax (PAT) also demonstrated growth, climbing 12.9% quarter-on-quarter to ₹433 crore, and was up 3.8% year-on-year from ₹417 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 6.6% sequentially to ₹870 crore, marking a 19% increase from the previous year.
Management Optimism
Pranav Bansal, Managing Director & CEO, expressed confidence in the company's operating model and expanding product portfolio, highlighting strong demand visibility and disciplined execution. He anticipates delivering approximately 35% volume growth and 20% EBITDA growth for the full fiscal year, alongside improvements in asset turns and ROCE. The management remains focused on sustained growth momentum and profitability enhancements.
Analyst View: Cautious Optimism
Anand Rathi Research has reiterated its 'Buy' recommendation for Bansal Wire, pointing to the company's established track record and consistent market share gains. The brokerage specifically noted the firm's presence across the steel-wire value chain and its focus on high-return on capital employed (ROCE) segments. The target price has been set at ₹360, valuing the stock at 1.15x FY28 PEG.
However, the brokerage has moderated its EBITDA and adjusted profit after tax (APAT) estimates for FY27 and FY28 by 5.6%-8.1% and 12%-14%, respectively. This adjustment stems from anticipated higher depreciation and finance costs as enhanced capacities are phased in over the next two years, with incremental benefits from the Sanand facility expected from FY29 onwards. The brokerage sees the company on track to become India's largest steel wire manufacturer.
