Bansal Wire (BANSALWIRE) Q2 FY27 Profit Jumps 38% as Record Volumes Drive Margin Recovery
The steel wire manufacturer posted its highest-ever quarterly sales volume, fueling a sharp rebound in profitability from a weak Q1.
Bansal Wire's Q2 FY27 profit surged 38% YoY to ₹52.9 crore, driven by record sales volume and a richer product mix. The company's net profit margin recovered to 4.0% as operations normalized after a gas disruption.
For Bansal Wire Industries, a business built on tonnage and throughput, the second quarter delivered exactly that. The company posted its highest-ever quarterly sales volume, powering a sharp rebound in profitability from a gas-disrupted first quarter and signaling a return to its core operating rhythm.
Revenue for the quarter ended September 2026 rose 24% year-on-year to ₹1,308 crore. The more telling jump was in profit, which surged 38% to ₹52.9 crore. The net profit margin recovered to 4.0%, a marked improvement from the 1.8% seen in the prior quarter.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1308.14YoY +24% | 1167.89 | 1055.4 |
| Profit (₹ Cr) | 52.9YoY +38% | 20.46 | 38.32 |
| Net Profit Margin (%) | 4.0YoY +11% | 1.8 | 3.6 |
A Volume-Driven Rebound
The story is in the volume. According to a company summary from Quartr, sales volume hit a record 128,867 metric tonnes, up 12.5% from a year ago and 15.1% from the June quarter. This higher throughput was the primary lever for margin expansion. It spread fixed costs thinner, lowering the operating cost per tonne and helping EBITDA per tonne reach a historic high of ₹8,150.
Operations normalized after a temporary gas supply disruption in Q1, which had forced the company to absorb higher costs. The ramp-up at its Dadri facility supported the quarter's output and efficiency. Management's strategy of pushing volume to gain market share, even at the cost of near-term margins, appears to be bearing fruit.
The Outlook Hinges on Mix and Stability
The recovery's durability depends on two factors: product mix and input cost stability. The company is actively shifting toward higher-margin specialty wires. Its B2C products for farming and fencing now account for about 10% of sales, according to Quartr, and carry better margins.
Key future drivers like steel tyre cord are in trial stages. The broader steel demand environment remains supportive, with government data cited by PIB showing finished steel consumption up 7.4% in the April-August period. However, a report from Equirus Securities suggests further steel price gains may be limited, keeping the focus on volume and efficiency.
Financially, the company is generating strong cash to fund its growth. For the first half of FY27, operating cash flow reached ₹339 crore, already exceeding the full-year figure for FY26, as per Quartr. Working capital days have also improved sharply.
Key Points
- Bansal Wire reported record quarterly sales volume of 128,867 MT, driving a 38% YoY profit jump to ₹52.9 crore.
- The net profit margin recovered to 4.0% from 1.8% in Q1, as higher volumes lowered per-unit costs and operations normalized.
- Management is transitioning the product mix toward higher-margin specialty and B2C wires, which now contribute about 10% of sales.
- Strong operating cash flow of ₹339 crore in H1 FY27 funds capacity expansion without relying on additional debt.
- The near-term outlook depends on sustaining volume growth and managing raw material cost volatility in a supportive demand environment.
Hexa Perspective
Bansal Wire's Q2 is a clear operational rebound, demonstrating the earnings power unlocked when its expanded capacity runs smoothly. The quarter validates the volume-led strategy but also highlights its inherent sensitivity to input costs and utilization rates.
The path forward is a balancing act. Success in scaling higher-margin specialty products like steel tyre cord is critical to building a more durable margin profile beyond the commodity cycle. For now, the company's strong cash generation and stable balance sheet provide a solid foundation to execute this shift while navigating the volatility of its core steel wire business.
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.