Bansal Wire's 8% margin trails peers despite higher utilisation
Management said H2FY27 will focus on higher Dadri utilisation and a richer product mix after quarterly volume rose 12.5% year-on-year.
Filed 22 Oct 2026, 17:44 IST · after market close · Bansal Wire Industries Ltd (BANSALWIRE)
Key takeaways
- Consolidated Q2FY27 operating margin was 8.00%, 3.03 percentage points below the 11.03% median for 21 reported Industrials peers.
- Management said record sales volume reached 1.29 lakh MT, up 12.5% year-on-year, while overall utilisation increased to 74% from 68% in FY26.
- Net profit of Rs 52.90 cr was generated with limited support from other income of Rs 0.43 cr, while the tax rate stood at 26.34%.
Price around the results
Higher volume has not closed the margin gap
Bansal Wire reported consolidated revenue of Rs 1,308.14 cr and operating profit of Rs 104.61 cr in Q2FY27. Management said quarterly sales volume reached a record 1.29 lakh MT, up 12.5% year-on-year, while overall utilisation rose to 74% from 68% in FY26. The 8.00% operating margin was 3.03 percentage points below the 11.03% median among 21 Industrials peers that had reported.
Profit was driven by operations, not other income
Expenses of Rs 1,203.53 cr absorbed most of revenue, leaving operating profit of Rs 104.61 cr. Interest of Rs 17.73 cr and depreciation of Rs 15.49 cr further reduced profit before tax to Rs 71.82 cr. Other income of Rs 0.43 cr was small relative to pre-tax profit, so the Rs 52.90 cr net profit was not materially supported by non-operating income.
Management is targeting mix and capacity gains
Management said it will prioritise higher Dadri utilisation and a richer product mix in H2FY27, funded largely through internal accruals. The company said IHT wire has been commissioned and has started contributing revenue, while Steel Tyre Cord has received trial orders and remains under customer evaluation. Management said planned expansion would increase combined IHT and OHT capacity from 9,000 MT to 15,000 MT by Q4 FY2027, with the Dadri brownfield project adding 60,000 MT and the Sanand project adding 90,000 MT.
Results were filed after market close
The consolidated results were filed after market close on 22 October 2026. The immediate stock response is therefore not covered here.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹1,308 cr |
| Other income | ₹0 cr |
| Expenses | ₹1,204 cr |
| Operating profit | ₹105 cr |
| Operating margin (%) | 8.00% |
| Interest | ₹18 cr |
| Depreciation | ₹15 cr |
| Profit before tax | ₹72 cr |
| Tax | ₹19 cr |
| Net profit | ₹53 cr |
| EPS (₹) | ₹0.68 |
Operating margin of 8.00% compares with a Industrials sector median of 11.03% across 21 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.02% | +4.40% |
Volume on the results session was 2.43× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2FY27 delivered record sales volume of 1.29 lakh MT, up 12.5% year-on-year.
- Overall utilisation increased to 74% in Q2 from 68% in FY26.
Guidance & outlook
- The company remains on track to achieve a ROCE target of 25%.
- For H2FY27, the company will prioritise higher Dadri utilisation and a richer product mix, funded largely through internal accruals.
- The company expects its capex commitment to support approximately 20% annual growth.
Expansion
- Combined IHT and OHT capacity is planned to increase from 9,000 MT to 15,000 MT by Q4 FY2027.
- The Dadri brownfield expansion will add 60,000 MT and is expected to be completed in Q4 FY2027.
- The Sanand greenfield expansion will add 90,000 MT and is targeted for commissioning in FY2028.
New products
- IHT wire has been commissioned and has started contributing revenue.
- Steel Tyre Cord has received trial orders and is under customer evaluation.
New initiatives
- The company is ramping up specialty wires including tyre cord, IHT, OHT and brass-coated hose wire.
- The company is developing products for the auto and infrastructure sectors.
Problems & risks
- India imports approximately 200,000 MT of steel tyre cord.
What to watch
- Whether operating margin improves from 8.00% toward the 11.03% median for 21 reported Industrials peers.
- Whether overall utilisation builds on 74% as management prioritises higher Dadri utilisation in H2FY27.
- Progress toward management's planned increase in combined IHT and OHT capacity from 9,000 MT to 15,000 MT by Q4 FY2027.