Bansal Wire expansion plans aim to lift annual capacity from 680,000 to about 830,000 tonnes by the end of 2027, management said in its October 23, 2026 earnings-call update. The investment roadmap follows record second-quarter FY27 revenue, EBITDA and net profit, although raw-material shortages and a delayed steel tyre cord project remain operational challenges.
Key Takeaways
- Management plans 150,000 tonnes of additional capacity across Dadri and a new Gujarat facility.
- Quarterly net profit rose 38%, while management retained its second-half profitability and volume-growth targets.
- Strong first-half cash generation supports investment, but tyre cord approvals and supply availability remain important execution milestones.
Table of Contents
- Bansal Wire expansion combines Dadri and Gujarat projects
- Record quarterly profit supports the investment plan
- Specialty wires advance, but tyre cord faces delays
- Supply disruptions test the second-half growth target
- Conclusion
Bansal Wire expansion combines Dadri and Gujarat projects
Managing Director and CEO Pranav Bansal outlined a 60,000-tonne brownfield addition at Dadri for low- and high-carbon wires, alongside a planned 90,000-tonne greenfield facility in Gujarat for stainless steel and low-carbon wires.
The Gujarat project carries an estimated capital cost of approximately INR 150 crore, excluding land. Management's annual capital-expenditure guidance is INR 200–225 crore, with investment expected to be funded largely through internal accruals.
The planned additions would increase capacity by roughly 22% from the current base. These are expansion targets rather than commissioned capacity, and the funding plan depends on continued cash generation.
| Item | Details |
|---|---|
| H1 FY27 revenue | INR 2,476 crore. |
| H1 FY27 EBITDA | INR 162 crore. |
| H1 FY27 net profit | INR 73 crore. |
| Debt position | Approximately INR 300 crore after a 40% reduction in H1; debt-to-equity ratio of about 0.2. |
| Return on capital employed | Approximately 22% annualized on Q2 performance, versus management's near-term target of 25%. |
Record quarterly profit supports the investment plan
For Q2 FY27, revenue increased 24% year on year to INR 1,308 crore, EBITDA rose 29% to INR 105 crore, and net profit climbed 38% to INR 53 crore. Sales volume reached 129,000 tonnes, compared with 114,609 tonnes a year earlier.
Pranav Bansal attributed EBITDA of approximately INR 8,000 per tonne to economies of scale from Dadri, cost management and a more favorable product mix. He estimated that one-time inventory gains contributed only INR 100–200 per tonne, leaving approximately INR 7,800–7,900 per tonne excluding that benefit.
Management nevertheless retained guidance of INR 7,500 per tonne for H2 FY27, below the second-quarter outcome. Its longer-term target remains INR 8,000–10,000 per tonne as specialty products scale up.
CFO Ghanshyam Das Gujrati reported first-half operating cash flow of INR 339 crore, including only INR 2.8 crore in Q2. The first-half total therefore should not be read as a steady quarterly cash-generation rate. Management continues to target approximately INR 800 crore of cumulative operating cash flow across FY27 and FY28.
Specialty wires advance, but tyre cord faces delays
The steel tyre cord project has been delayed by six to eight months following a fire. Pranav Bansal said the company received its first trial order in the preceding quarter and expected another customer's trial order within 10–15 days of the call. Commercialization could begin during FY27, but remains subject to customer approvals, with a slow initial ramp-up expected.
The company is also developing consumer-facing demand. Its wire product applications catalogue lists farming, fencing and poultry uses, including crop-support cages, chain links, welded mesh, barbed wire and poultry cages.
Management said business-to-consumer sales represented about 10–12% of Q2 volume and described plans to expand distribution beyond industrial customers. Separately, combined IHT/OHT specialty-wire capacity is expected to reach 15,000 tonnes during FY27, including 9,000 tonnes already installed and 6,000 tonnes being added.
Supply disruptions test the second-half growth target
Management maintained its target of 20% year-on-year volume growth for H2 FY27 despite wire-rod shortages. Pranav Bansal said suppliers had diverted production toward TMT products and experienced breakdowns, affecting Bansal Wire's production in October. He said that immediate production impact had been resolved.
Gas prices remained close to 2.5 times their regular level. Although the company said it had passed those costs to customers, elevated energy costs remain a margin risk. Its low-relaxation prestressed concrete wire business was also unprofitable amid excess domestic capacity, though it contributed less than 1% of sales.
Conclusion
The next milestones for Bansal Wire expansion are customer approvals for steel tyre cord and installation of additional specialty-wire capacity. Management's H2 FY27 targets will also test whether the record second-quarter performance can translate into sustained growth despite supply and energy-cost pressures.
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