Bansal Wire Industries Ltd (BANSALWIRE) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '27 conference call of Bansal Wire Industries Limited. From the management, we have Mr. Pranav Bansal, MD and CEO; Mr. Ghanshyam Gujarati, CFO; and Mr. Manu Jain, Head Investor Relations, to take the discussion forward. We also have an Investor Relations team from Adfactors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. Before we begin, I would like to mention that some of the statements made in today's discussion may be forward-looking in nature and may involve risk and uncertainty. Please note, the disclaimer mentioning these risk and uncertainties are on the disclaimer slide of the investor relations presentation that has been shared earlier. I now hand the conference over to Mr. Pranav Bansal for the opening remarks. Thank you and over to you, sir.
Pranav Bansal (Bansal Wire Industries Ltd): Yeah. Thank you, sir. Good morning, everyone. Thank you for joining us for the Bansal Wire Industries Q2 and H1 '27 earnings call. I hope you had an opportunity to go through our financial results and investor presentation. Joining me today is our CFO, Mr. Ghanshyam Das Gujarati. I would also like to welcome Mr. Manu Jain, who has joined us recently as the Head of Investor Relations and Strategy. I am extremely pleased to share that this has been a landmark quarter for Bansal Wire Industries. We've achieved our highest-ever quarterly revenue, EBITDA, and profit after tax. More importantly, our EBITDA per ton has also reached its highest-ever level. This improvement has been supported by a combination of factors, including better operational efficiency, improved cost management, and a favorable product mix. And of course, benefits of economies of scale that are gradually coming in and are visible as our expanded Dadri facility ramped up. Another important highlight has been our cash flow performance. Through our continued focus on working capital optimization and disciplined financial management, we have generated strong operating cash flows coming close to achieving our full-year guidance within the first 6 months itself. And perhaps one of the most satisfying development has been our improvement in our return on capital employed. We have consistently maintained that our near-term objective is to achieve 25% ROCE. Based on our second quarter performance alone, on an annualized basis, our ROCE stood at approximately 22%, bringing us significantly closer to that objective. What makes these achievements even more meaningful is that they came immediately after a challenging first quarter. We were able to overcome the operational challenges faced during the first quarter, including industrial gas disruptions and higher input costs. This demonstrates our ability to recover quickly and move closer to our strategic targets. I believe this quarter represents an important step in the evolution of Bansal Wire Industries, from a business focused primarily on capital and volume growth to one increasingly focused on higher profitability, stronger cash generation, and superior return on capital. Coming to our operations, we continue to see healthy demand across the various industries we serve. One of our biggest strength of Bansal Wire has been our diverse presence across sectors such as automotive, infra, agriculture, power and transmission, and general engineering. We remain positive about the medium- to long-term outlook for the steel wire industry in India, supported by increasing industry activity, infrastructure development, and growing demand for specialized wire products. Our strategy is to strengthen our market position by expanding our product portfolio, improving our manufacturing capability, and continuously developing new applications to capture the growth opportunities across the Indian economy. Our specialty wire business
Pranav Bansal (Bansal Wire Industries Ltd): Another area where we are making encouraging progress is our B2C business. Historically, we have largely been focused on industrial customers. Now we are expanding our reach into farming, fencing, poultry, and other retail-oriented applications. We have introduced several products including grape trellis wires, poultry cages wires, and specialized farming and fencing products. Our objective is to build a stronger distribution network, reach new customer segments, and establish Bansal Wire as a recognized brand beyond our traditional industrial markets. Moving on the capacity front, our plans remain on track. We will add 60,000 tonnes of capacity at Dadri as brownfield expansion. Further, we are also progressing with our planned greenfield facility in Sanand, Gujarat with approximately 90,000 tonnes. This facility will strengthen our presence in Western India and bring us closer to the customers and improve supply chain efficiencies. With these expansions, we expect our overall manufacturing capacity will increase from 6.8 lakh tonnes and reach approximately 8.3 lakh tonnes by the end of next year. Our indicative annual capital expenditure remains in the range of 200 to 225 crores. However, I would like to emphasize that our approach to expansion remains disciplined. Our objective is not simply to add capacity, but to ensure that new investments contribute positively to profitability, cash generation, and return on capital. As communicated earlier, we are targeting cumulative operating cash flow generation of approximately 800 crores over FY '27 and '28 combined. We remain committed to funding a significant portion of our future investments through internal accruals. We believe this approach will allow us to scale the business while continuing to strengthen our financial position. As we enter the second half of FY '27, we remain confident about the opportunities ahead. Our priorities are clear: to strengthen our leadership in the steel wire industry, increase the contribution from specialty wire products and expand our B2C business and execute our capacity expansions efficiently. At the same time, we will continue to focus on improving operational efficiencies, generating healthy cash flows, and working towards our near-term ROCE target of 25%. The performance of this quarter gives us confidence that the strategic initiatives we have undertaken are are beginning to deliver tangible results. For us, the most encouraging aspect of this quarter is not just that we have achieved record financial numbers, but that we are seeing improvement across all parameters that matter for sustainable growth: profitability per tonne, cash generation, and capital efficiency. Our ambition is to build Bansal Wire into a larger, more profitable, and capital-efficient organization, creating sustainable value for all our stakeholders. With that, I will now hand over our call to our CFO, Mr. Ghanshyam Gujarati, who will take you through the financial numbers. Thank you.
Ghanshyam Das Gujarati (Bansal Wire Industries Ltd): Thank you, Pranav sir. Good morning, everyone. Let me take you through the financial summary for the quarter and first half of '27. Our revenue for the quarter is stood at ₹1,308 crores, up 24% year-on-year. EBITDA for the quarter came in at ₹105 crores, up 29% year-on-year. And net profit for the quarter is stood at ₹53 crores, up 38% year-on-year. We reported higher highest-ever EBITDA and highest-ever EBITDA and EBITDA per ton for the first half of FY '27. Revenue stood at ₹2,476 crores, EBITDA at ₹162 crores, and net profit at ₹73 crores. As Pranav sir already mentioned, our sales volume for the quarter is stood at at 129,000 metric tonnes compared to 114,609 tonnes metric tonnes in quarter 2 of FY '26. Operations run at normal level in the quarter following the industrial gas disruption in quarter 1. The demand across our end market was healthy. On the cash flow cash flow side, we generated operational cash flow of ₹218 crores during the quarter and ₹339 crores in first half, reflecting our continuous focus on generating healthy cash flow from the operation and improving the working capital cycle. This conclude my remarks. We can now open the floor
Ghanshyam Das Gujarati (Bansal Wire Industries Ltd): closing. Thank you.
Moderator: Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on the touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and then two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and one to ask a question. We will take the first question from the line of Parthiv Jhonsa from Anand Rathi. Please go ahead.
Parthiv Jhonsa (Anand Rathi): Hi, good morning, sir. Thank you for the opportunity. Sir, before I begin my question, I just want to give a thumbs up to the team who has actually created the presentation. It is actually one of the best presentations since listing, sir, genuinely. And
Pranav Bansal (Bansal Wire Industries Ltd): Thank you. Thank you.
Parthiv Jhonsa (Anand Rathi): So, my Yeah, yeah, yeah. So, my first question is actually pertaining to your all your value-added product portfolio, you know, IHT, OHT, and your steel tyre cord, right? I believe you have already given for the trial runs as far as steel tyre cord is concerned. So, number first, when is that expectation that, okay, that will be basically translate to some tangible, you know, top line and EBITDA? Number one. Number two, the 15,000 capacity once it happens for IHT and OHT, right? What is the kind of top line and EBITDA, you know, growth are we expecting? And there is this possibility that this 15,000 in FY '28 and say '29 also can grow from here on as well? So, that's my first question.
Pranav Bansal (Bansal Wire Industries Ltd): Sure, sir. So, on specialized products, we have two streams that we are working on. One is steel tyre cord. Steel tyre cord, we got our first trial order last quarter and we are expecting that we will receive another trial order within the next 10-15 days, hopefully. So, yeah, that is that. I think that is from another customer, so we'll have at least two customers who have given us trial orders. Other customers also, second stages of approvals have already started and we are expecting some good results in the next one or two quarters. Hopefully, if everything goes well, we might be able to see some commercialization within this year itself. So, that is for steel tyre cord. Other stream that we're working on is on IHT and OHT wires. So, IHT wire has been performing quite well. We've reached a positive EBITDA last quarter from IHT wires. And we are now also moving fast on OHT. So, by hopefully, within this year, we will be able to increase our total capacity of IHT-OHT to about 15,000 tonnes. And yeah, so capacity utilization there is already good and I am expecting that we will see some positive contribution within this quarter from IHT and OHT.
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