Bansal Wire shares fall 5% post Q3 results; buy on dips or stay cautious?

Shares of steel wire manufacturer Bansal Wire Industries were under pressure on Wednesday, January 21, after the company reported a decline of 2.5 per cent in its revenue from operations in Q3FY26 on a sequential basis. The company's share price fell 5.38 per cent to an intraday low of ₹272.4 per share on the NSE.

 

The counter, however, pared some losses but continued to trade lower on Wednesday. At 12:25 PM, Bansal Wire shares were seen exchanging hands at ₹276.45, down 3.98 per cent from the previous close of ₹287.90. The benchmark NSE Nifty50 was trading at 25,170, down 70 points or 0.25 per cent.

 

Bansal Wire Q3 results highlights

In Q3FY26, the company’s revenue from operations declined 2.5 per cent quarter-on-quarter (Q-o-Q) to ₹10,290 crore from ₹10,554 crore in Q2FY26. On a year-on-year (Y-o-Y) basis, revenue rose 11.3 per cent from ₹9,246 crore.

 

During the quarter, the company’s profit after tax (PAT) increased to ₹433 crore, up 12.9 per cent Q-o-Q from ₹383 crore and 3.8 per cent Y-o-Y from ₹417 crore.

 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 6.6 per cent Q-o-Q to ₹870 crore from ₹816 crore, and 19 per cent Y-o-Y from ₹731 crore.

Management commentary

Commenting on the results, Pranav Bansal, Managing Director & CEO of Bansal Wire Industries, said:

"Our Q3 and 9M FY26 performance reflects steady execution across operations, reinforcing confidence in Bansal Wire’s robust and well-established operating model and expanding product portfolio. Continued focus on operating efficiencies, improved mix, and disciplined capacity utilisation remains supportive of healthy volume growth and margin resilience."

 

"Supported by strong demand visibility and disciplined execution, we remain confident of delivering approximately 35 per cent volume growth and 20 per cent Ebitda growth for the full year, while continuing to improve asset turns and ROCE."

 

"Overall, with strong operating execution, improving cash flow generation, and a growing contribution from higher-value products, the company remains well-positioned to sustain growth momentum and deliver consistent improvements in profitability and returns," Bansal added.

Should you buy, sell or hold?

Analysts at Anand Rathi Research have retained their Buy rating on the stock, citing the company’s long track record of profitability and consistent market share gains. The brokerage highlighted Bansal Wire’s presence across the steel-wire value chain, focus on high-ROCE segments, and management guidance for surpassing ₹8,000 Ebitda per tonne.

 

However, as a major portion of enhanced capacities is likely to be completed over the next two years in a phased manner, the brokerage has trimmed its Ebitda estimates for FY27/28 by 5.6 per cent and 8.1 per cent, and APAT estimates by 12 per cent and 14 per cent, due to higher depreciation and finance costs.

 

"We believe with the Sanand capacity coming on stream by December 2027, incremental benefits will flow from FY29 onwards. Assuming the company is on its way to becoming the largest steel wire manufacturer in India, we continue to remain positive and retain our Buy rating on the stock with a target price of ₹360, valuing it at 1.15x FY28 PEG," wrote the analyst in a research note.  ==================================== 

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