Bansal Wire Industries (BANSALWIRE) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 FY26 sales volume of 104,000 tons and consolidated revenue of Rs. 9,390.07 million, with 74% capacity utilization and strong operational momentum.

• Net profit after tax for Q1 FY26 was Rs. 392.79 million, up 24.6% year-over-year, with EBITDA rising 19.6% to Rs. 744.6 million.

• Completed IPO in July 2024, raising Rs. 7,450 million, and listed on NSE and BSE.

• Progressing with Dadri expansion, specialty wire scaling, and backward integration at Sanand to secure raw material supply and enhance sustainability.

• Benefited from India's infrastructure growth and manufacturing demand, positioning as a leader in the steel wire industry.

Financial highlights

• Q1 FY26 consolidated revenue: Rs. 9,390.07 million, up 14.9% year-over-year; EBITDA: Rs. 744.6 million, up 19.6%; PAT: Rs. 392.79 million, up 24.6%.

• Standalone Q1 FY26 revenue: Rs. 9,079.60 million; standalone net profit: Rs. 302.79 million.

• Free cash flow from operations exceeded Rs. 1,000 million, reversing a negative cash flow last year.

• EBITDA margin and profitability improved due to cost-control and higher volumes.

• Basic and diluted EPS (consolidated) for Q1 FY26 was Rs. 2.51, up from Rs. 2.37 in Q1 FY25.

Outlook and guidance

• Targeting 30% volume growth for FY26, with capacity additions of 60,000 tons in Q2 and another 60,000 tons by Q3.

• Specialty wire segment expansion and backward integration projects on track, with Sanand facility completion by September 2027.

• Expecting temporary margin decline until FY27 due to market share expansion, with normalization and improvement from FY28 as backward integration and specialty wire initiatives mature.

• EBITDA guidance: 10% increase for FY26, with per-ton EBITDA expected to decline by 10-20% in the near term before recovering post-FY27.

• IPO proceeds allocated to debt repayment, working capital, and general corporate purposes.