This article first appeared on GuruFocus .
Release Date: January 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bansal Wire Industries Ltd ( BOM:544209 ) reported its strongest ever operating performance in Q3, driven by robust demand across automotive, infrastructure, and general engineering sectors.
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The company achieved its highest ever monthly sales of $45,000 in December, supported by an expanded manufacturing base.
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Strategic expansion into specialty wires, including the launch of induction hardened tempered (IHT) wires, has been successful, with commercial sales already underway.
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The company generated almost 240 crores of free cash from operations, nearly reaching its full-year target with another quarter remaining.
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Return on capital employed (ROC) has been consistently improving, with a target of achieving 25% by the end of next year.
Negative Points
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The company faced challenges in the first couple of months of the quarter due to labor shortages caused by early Diwali and elections.
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There was a fire incident in the specialty shed, causing delays in the stabilization of the steel cord production.
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Despite a 20% growth in EBITDA, the net profit growth has not been as significant due to higher depreciation and interest costs.
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The company is still in the process of consolidating related party entities, which may take another two to three quarters.
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There are concerns about the impact of product mix changes on EBITDA per ton, particularly with the increase in low carbon wire production.
Q & A Highlights
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Warning! GuruFocus has detected 3 Warning Signs with BOM:544209.
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Q: Can you provide an update on the GST-related issues and their financial impact? A: The GST issues have been largely resolved, with demands reduced by 98-99%. The remaining issues are under appeal, and we do not expect any significant financial impact. - CFO
Q: Could you elaborate on the approval and capacity utilization for the IHT product? A: We received customer approvals faster than expected, achieving 20% capacity utilization this month. We aim for 40% by year-end and are expanding capacity from 9,000 to 15,000 tons. - CEO
Q: What is the status of the steel cord business and its approval process? A: We are slightly behind schedule due to insurance approvals but expect lab approvals soon. Field trials will follow, with commercial production targeted for Q2 or Q3 next year. - CEO
Q: How do you plan to handle the older facilities once capacity moves to the new site? A: The older facilities are not viable long-term and will be shut down once the new capacity is fully operational. They currently operate on a lease basis for Bansal Wire. - CEO
Q: Can you discuss the expected EBITDA per ton and product mix changes for FY27 and FY28? A: We aim for a 20-25% growth in absolute EBITDA. While low carbon's share will increase, specialty products will also contribute, potentially raising EBITDA per ton to 8.5 or 9 over the next 1-2 years. - CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
