Bansal Wire Industries Ltd (NSE: BANSALWIRE) Q1 2026 Earnings Call dated Jul. 22, 2025
Corporate Participants:
Unidentified Speaker
Pranav Bansal — Managing Director & Chief Executive Officer
Ghanshyam Das Gujrati — Chief Financial Officer
Analysts:
Unidentified Participant
Parthiv Jhonsa — Analyst
Prateek Singh — Analyst
Aditya Bhartia — Analyst
Saumil Mehta — Analyst
Akash — Analyst
Mayank Bhandari — Analyst
Sameer — Analyst
Prakhar Khajanchi — Analyst
Vidit Trivedi — Analyst
Jay — Analyst
Jigar Jani — Analyst
Shweta Dikshit — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Bansalwaier Industries Limited Q1FY26 earnings conference call hosted by Anandraathi Share and Stocks Brokers Limited. As a reminder all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on a touch tone phone. Please note that this conference is being recorded with this. I now hand the conference over to Mr. Parteev Jonesa lead Metal and Mining Analyst. Thank you.
And over to you sir.
Parthiv Jhonsa — Analyst
Thank you Samya. Good morning everyone. We at Anandrathi are pleased to host Banshal Wire Industries Ltd. Quarter 1 FY26 Earnings Conference Call from the company. We have with us Mr. Pranav Banshal Managing Director and CEO and Mr. Kansham Das Gujarati CFO. We would now like to invite the management for the opening remarks which will then be followed by question and answer session. Thank you. And over to you sir.
Pranav Bansal — Managing Director & Chief Executive Officer
Good morning Pathi. Thank you for hosting us. Good morning everyone and a very warm welcome to Bansalwar Industries first quarter earnings call. The results earning release and investor presentations are available on the stock exchanges and our website. We trust you had an opportunity to review them. We are pleased to report a strong start to FY26 continuing the momentum from last year. Despite Q1 typically being a lean quarter, we’ve delivered a solid performance. This reflects the strength of our integrated operations, customer first mindset and constant drive for innovation. The current economic scale in India presents unparalleled opportunities for steel wire industry.
India’s infrastructure and manufacturing push continues to fuel demand for the steel wires. We are well positioned to ride this wave given our scale, agility and deep presence across the end user industry. Now let me take you through our performance in the first quarter on the volume front we closed the quarter with 1 lakh 4,000 tonnes of sales which is the highest we have ever done in any quarter. Despite it being a lean period. This number was achieved at about a 74% capacity utilization which gives us enough room for which gives us enough room for future growth.
A major highlight this quarter has been our strong cash flow generation. We delivered over 100 crores in free cash flow from operating activities driven by tighter management, better working capital discipline and improved operational efficiency. This performance marks a turning point and we expect it to only strengthen in the coming quarters. Now looking towards a long term strategic roadmap, our main focus will be on capturing more market share and and continuous volume growth over the next three years. We are targeting a 30% increase in volume this year and we are on track for that. Along with this, we will continuously be adding new capabilities to fuel growth for coming years.
In order to achieve this, we might take a small decline in our margins till FY27 but this should normalize or in fact increase further from FY28 once the backward integration and specialty wire initiatives kick in. We are specially focusing on growing a specialty wire segment today. Products like HoseWire, IHT and SteelCore. These import substitute products have received an overwhelming positive response from the customer, further setting tone for the future growth trajectory. These products will significantly bolster our production capabilities and enable us to address the growing market demand more effectively, thereby reinforcing our industry leadership. We expect operationalization of these products within FY27 as and when customers approval come through followed by a phase ramp up between FY28 to FY30.
We are also moving steadily on our Sanant project. Major equipment orders have been finalized with global suppliers. This facility will help us backward integrate our steel and stainless steel wire requirement, securing raw material supply chain and reducing input cost, further strengthening our margin. It will also reflect our ESG commitment through solar energy rainwater harvesting and a first time acid free pickling process. The confidence to continue with this growth momentum through these initiatives stems from the strong operational cash flow that we have strengthened our financial position with. We anticipate this situation to only continue and further facilitate us in ramping up production in the coming years by funding majority of our CapEx through internal improvements goals.
With this I’ll now like to hand over the call to our CFO Mr. Kansha.
Ghanshyam Das Gujrati — Chief Financial Officer
Thank you Pranav sir. Good morning everyone. I would like to touch upon the. Financial summary for the first quarter for Q1 Financial. Our revenue grew 15% on year on. Year 939 EBITDA to 20% on year on year to 75 crore and net. Profit for the quarter stood at 39 crore up 24% year on year basis. As mentioned by PR, the total volume for the quarter is today 1 lakh. 4000 tons compared to 97,000 as on the 3-31-25. He has also mentioned that strong positive cash flow of rupee 97 crore in. The first quarter of. I suggest the minus cash flow which. Was generated in the last year of 150 crore. We now open for the forum for the FND FA.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star. And two participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question comes from the line of Pratik Singh from Dam Capital. Please go ahead.
Prateek Singh
Hey, thanks for the opportunity and congrats. On a good set of numbers. The first question is lastly 18%. The breakup of the 1 lakh. 1 lakh that we did before. The very ballpark, how much was high carbon, low carbon?
Pranav Bansal
Yeah, hi, sorry but we do not disclose segment wise revenue on our quarterly call.
Prateek Singh
Oh, no worries. Volume also.
Pranav Bansal
Volume is 1 lakh 4000 tons for the quarter.
Prateek Singh
I mean the breakup of volumes. Can it be?
Pranav Bansal
Yeah, that, that I do not have currently.
Prateek Singh
The second question is largely on working capital and congrats on walking the talk. On reducing working capital. So what were the key drivers behind. Reducing this and how should we see it going ahead when we see further?
Pranav Bansal
Yes, sure. So I think one of the concerns has always been that we do not generate enough free cash, which is what we try to do within this quarter and which is the target for us for this year as well as next year. What you’ve seen is about 100 crore free cash that we’ve generated this quarter and we expect this to only improve further each and every quarter. Each and every year from now we’ve taken a lot of initiatives in this regard. Of course we have tightened our inventories quite a lot and we will see further tightening up of inventories as and when we go.
Even after an increase of about 18, 20%, we have still not increased our overall debtors by that much. So we have actually taken our overall debtor days down as compared to last year. This coupled with a lot of other instruments that we’ve added within this quarter have led to this kind of a result.
Prateek Singh
Thanks. And the last question is on beadwire. The PPP says that we are targeting 30,000 tons of production. So have we started producing beadwire yet or is it something which could come in the next.
Pranav Bansal
So although the capacity is installed as of now in the adri, we are not utilizing it because right now we’re getting better margins in other products. And as you might remember, generally the capacity that we always produce is fungible. So we have actually tried to shift that capacity to other high carbon wire products which are giving us better realization today. But as and when Bidwire realizations improve, we will start production. We will start producing that.
Prateek Singh
Thanks Sudhir Pranav. Enjoyed by the team.
operator
Thank you. The next questions come from the line of Aditya Bhartia from Investech. Please go ahead.
Aditya Bhartia
Hi, good morning Pranav. My first question is on consolidation of some of the group entities. So in the last couple of quarters we have started seeing the benefit of Balaji and Bansal high carbon coming into the listed entity. So just wanted to understand this volume growth that we have seen on a year, on year basis. What proportion of those that volume growth can be explained by just the consolidation of those two entities into the listed entity? And how much of that is happening on an organic basis?
Pranav Bansal
I would say majority of the volume growth that you see have happened on an organic basis. As you might remember, we have consolidated most of the sales from those 2 entities also in the, in the first quarter of last year. Whatever was remaining has been consolidated within quarter two and quarter. So majority of it today is organic. What I would also like to add is that because of this consolidation we’ve been able to really optimize a lot on a lot of markets. So even today after trying our best to utilize, we are still short of production.
Aditya Bhartia
Understood? Understood. And given that Q1 is a lean quarter, is it fair to assume that in every subsequent quarter we should be seeing an increase of let’s say somewhere between 10 to 15,000 tons on a. On a sequential basis. So maybe the year end run rate then becomes more like 1 lakh 30,000 or 1 lakh 40,000 volumes. Is that how you.
Pranav Bansal
Sir, last, last year we closed at about 97,000 tons. Being the, being the last quarter. And I, yes, I am pretty confident that we will achieve a 30% kind of a volume growth within this year, if not more so if we just do that basic math, I think we should be around maybe 1.2, 1.3 lakh tons by the end of the quarter. By the end of the year.
Aditya Bhartia
Sure, sure, sure. My second question is on working capital, wherein bulk of the improvement in working capital that we have seen this time around is on account of inventory. Right. And as it is, I mean if we look at last year inventory to a certain extent had risen. What are the other big levers that we are having to bring down the working capital from here on? Historically we have seen working capital operating at even lower numbers. So can we get to a similar kind of a run rate of let’s say somewhere around 70, 80 days, 70 odd days of working capital?
Pranav Bansal
I think everyone has been working very hard on reducing our inventory days and data days. We have already done Something on inventory. Now we are working on how to reduce our debtor days as well. I see no why we would not be able to go to that range again. Or maybe even better that in the near future. 100 crore of operating cash flow is just for this quarter. We have three more quarters and we’ll see better, much better results from here.
Aditya Bhartia
Perfect. Perfect. That’s great to hear. And just one clarification on that. Like we have certain levels like let’s say vendor financing or data factoring. Have we started using them or those are the instruments which are yet to be used. And all the improvement that we are seeing is purely on the basis of efforts that you’ve been putting in for quarter one.
Pranav Bansal
I think it will be a mix of both of these. Of course majority has been in inventory. But we’ve also started utilizing a lot of other instruments, especially channel financing which is one way why we will be able to reduce our debtors in the coming quarters.
operator
Some background noise, Pranav sir.
Aditya Bhartia
Sure. I’m done with my questions. Thanks a lot, Pranav.
Pranav Bansal
Thank you.
operator
Thank you. The next question comes from the line of Sawmill Mehta from Kotak Mutual Fund. Please go ahead.
Saumil Mehta
Yeah, thanks for the opportunity. First question, you know, in terms of while the operating cash flow for the quarter came strong at about 100 crores, if one looks at the cash flow basis in terms of finance cost that have started to go up. So for the entire year what kind of cash flow finance interest one should be looking at? And structurally is there a thought process on the EBITDA to operating cash flow conversion, any ratio we are looking at ballpark or the next two or three years on a sustained basis.
Pranav Bansal
So sir, I do agree that financing cost has gone up and of course as our revenue goes up this will keep on increasing. But with that being said, our cash flows would still further improve every quarter and every year because of these working capital initiatives and debtor financing and channel financing initiatives that we have taken. So I do not see any issue here. We have, we have allocated about 600 crores for the Sanand project which is one of the major investment. And we are planning to fund that majority through internal approvals through these addition and working capital.
Saumil Mehta
Okay. So fair to assume that obviously FY26 operating cash flow generation will be pretty strong. But going into 27 again we should have a very high operating cash flow and probably as a percentage of EBITDA the number should start improving from what we have seen in previous years. Would that be a fair assumption, Pranav?
Pranav Bansal
Yes, I agree with you on this. Our company has, we’ve honestly not been focusing a lot on free cash flow generation till about now. But now, this year and next year, this is I would say kind of a turning point for us wherein our cash flow generation would quite improve substantially as compared to the past. Great.
Saumil Mehta
And in terms of ballpark, FY26 and 27, what would be the CAPEX guidance? As of now.
Pranav Bansal
Our major CAPEX has been the Sanat project which is about 600 crores and maybe another 100, 150 crores on our regular maintenance and upgradation capex. And you know how we will keep on adding volumes capacities to meet the growing demand. So I think it’s safe to say about 7,750crores of capability. Looking at this year,
Saumil Mehta
this will be. Spent on a period of two years or three years.
Pranav Bansal
This will be spent within two years. So 26 and 27.
Saumil Mehta
26 and 27. So in that backdrop, fair to assume that the leverage will go up given operating cash flow generation can be marginally short than what the CAPEX guidance is for the next two years.
Pranav Bansal
Yes sir, it would be. We would fund some of it through debt as well because we’ve, we do not have much leverage on our balance sheet today. So we are comfortable with some amount of debt because this will, this is for backward integration which will really, this is a project which will start utilization very quickly once it is up and running. So we are quite comfortable with taking some amount of debt for this.
Saumil Mehta
Sure. And my last question in terms of the working capital, are the specific internal teams who are working on each of the line item. Can you, can you throw some more lines right on to, you know, what are the specific objectives we have in our mind? I mean Q1 operating cash flow reduction was, I mean the working capital reduction was very heartening but how sustained these trends are. Can you, can you talk a bit more on that? That would be my last question.
Pranav Bansal
Sure sir. So actually one thing is that we have done a complete organizational restructuring within the last year. Now we have a specific team looking only after raw material purchases, which is virod in our case and which is the reason why we have seen this kind of inventory reduction as well. Here we have a 10 people team only working on reducing hours and days of inventories today. So this is the kind of tight control that has come in the system. Apart from that in terms of debtor finance, in terms of debtors also we today have a 75 people team in sales including the credit control team working on this right now we have already seen some reduction happen.
And although quarter one was majorly for with inventory the coming quarters we will see a major change in the debtor ratio as well.
Saumil Mehta
Great, great. All the best for subsequent quarters. Thank you.
operator
Thank you. The next question comes from the line of Akash from Dalal and Brocha. Please go ahead.
Akash
Yeah, thanks for the opportunity. Congrats Pranav sir on a good set of results. Sir. So basically I was just going through the standalone numbers and we have improved significantly on our standalone top line. It’s improved from almost around 600 crore to 900 crore. So can you give us a bifurcation of volumes between BSPL and what we do under our standalone entity this quarter?
Pranav Bansal
So BHPL we did about 23,000 tons of sale from BSPL.
Akash
Okay, understood. Yeah. And so balance would be from Dadri or will have a certain element of job work as well.
Pranav Bansal
The balance would be. I mean some of it would of course be from the other but from other units as well. Other than BSPL we have four manufacturing units. So you know from all these four manufacturing units we will have some outcome. Although what I would like to add here is that Dadri has done a little better than the fourth quarter. Although as I said first quarter is always a lean period for us because there are a lot of labor shortages because of which that which impacts our production quite substantially. But even after that we were able to increase our production by about 25% in Dadri as compared to Q4 of last year.
Akash
Fair point, sir. So what utilization level would Dadri be at currently the exit run rate for.
Pranav Bansal
The ADRI was at about 35%.
Akash
Understood. Answer by. By the year end. So one question would be what would be our volume guidance for next quarter? And by the end of the year what utilization levels are we targeting?
Pranav Bansal
Sir, we have done about 1 lakh 4000 tonnes with about 74% capacity utilization. And with this we are already adding capacities. About 1. About 60,000 tons is scheduled to be added within the second quarter. And now on volume front as I said our guidance has been 30% for this year and we are on track to achieving this. But of course giving you a quarter breakup will be difficult because again you know it is very dynamic. How utilization levels are, how fast we are able to ramp up in the other. It all depends on that. But for the full year I think 30% is a fair.
Akash
Understood sir. So I was just doing a. Yes, I actually also wanted to understand how are our. What’s the progress on our specialty Wires front. So how many tons have we produced on that front in terms of hose wires?
Pranav Bansal
So hose wire we’ve already done about 20% kind of a capacity utilization. Apart from that steel cord. We have already sent samples in the first quarter and we’ve already received some positive feedback from customers on sampling. Because of which why we are now confident of operationalizing this capacity within FY27. Of course, as and when the customer’s approval comes and after that we are also planning for a phased ramp up of production between 28 to 30.
Akash
Correct. So if any ballpark estimate you can give by when we can start commercial production of steel cords, this is what customer interactions have been till date.
Pranav Bansal
Hopefully by the third or fourth quarter of FY27.
Saumil Mehta
Okay. So till then it will be more of hose wire only where we’ll see utilizations improving. And we have all the all starting up IHTY soon. We have all our approvals for hose and IHT in place with the relevant.
Akash
Customers for whose we’re waiting on. We’re still waiting on major approvals to come in within this quarter for iht. Our production will only start from third quarter. So after that maybe one or two quarters it will take us to get approval there.
Akash
Okay, so just if you could summarize, let’s say out of a 20,000 tons specialty wire capacity this year, 26, 27 and 28, how do you basically estimate the capacity utilization to scale up or volumes to scale up?
Pranav Bansal
Talking about steel quad for 20,000 ton, we are looking at approvals coming in within 27, third quarter and fourth quarter. Therefore 28 will be a year where we will see major impact of specialty wire coming in. If everything goes well, I think we should be able to utilize about 60, 70% of capacities by 28.
Akash
Yeah. But till then hose wires and IHT will any which way be doing right. And even those are kind of very high margin products. So what capacities are we planning in those two segments? Let’s say this year and next year 26 and 27. Till the time steel courts come comes live.
Pranav Bansal
Yeah. So till the time steel court comes online, we will still have 20,000 tons of capacity that we can make into hose wire. We are looking at about 50 plus percentage of utilization next year. This year also we are looking at about 35, 40% kind of a capacity utilization.
Akash
Understood. Answer my last question from my side. So I was just doing a calculation of our realization per ton this quarter and EBITDA pattern. So I think realization sits somewhere around 90, 90,500 or 91,000 somewhere around that figure and a bit DA sits around per terms it’s around around 7200. So any comments on these two figures? How, how they will map out in the, let’s say coming few quarters, two, three quarters in which direction they shall be going.
Pranav Bansal
The realization honestly is not in much of our control because it all depends on the movement in my raw material. We have a cost plus model. So whatever increase decrease there is in the raw material will be passed down. Therefore realization will keep on increasing. On EBITDA front also we’ve guided for a 10% increase of EBITDA this year. And I would like to stay with that guidance. Although I understand that we’ve already done a better ebitda. If you, you know, just take the first quarter, we will see a better result. But I would still like to stay with this guidance because again it is very dynamic and this year and next year we are looking at increasing market share.
So you know, I would not want to comment anything other than this on EBITDA. A 10% increase is what we are.
Akash
Looking at and realization should improve business the prices.
Pranav Bansal
So that. That all depends on the raw material cost. So.
Akash
Thanks a lot. Thanks a lot.
Pranav Bansal
It increases, decreases. Yeah. Thank you. Thank you.
operator
The next question comes from the line of Mayang Bandari from Asian Market Securities. Please go ahead.
Mayank Bhandari
Yeah, thanks for the opportunity. My first question is on IHT virus. Could you give us any sense on the market size of IHT particularly which are the players in this market?
Pranav Bansal
Sure, sir. So IHT wire is a wire that is used for suspension application in two wheeler. Majorly all the EVs today use IHT wire. Which is why we are, we, we have come up, we are coming up with this product for all the EVs. Two Wheeler EV especially now looking at today the market size would be at about 15 to 20,000 tons. But it is growing very rapidly. As of now there is only one producer of this product in India which is Tata. Otherwise everything is still being imported. So this comes perfectly under our specialty wire vertical wherein we are trying to substitute imports and we are only targeting high volume or high growth areas.
Mayank Bhandari
What kind of margin EBITDA per ton we make in IHD we would be.
Pranav Bansal
Looking at about 15 to 20 rupees a kg kind of in a bit of a here.
Mayank Bhandari
And secondly sir, on this volume guidance of 30% growth we are currently at almost 74% capacity utilization in the Q1 as you mentioned. And if we go by our capacity expansion plan over total capacity will become almost 6 lakh or 6.5 lakh ton. Right. By the end of this year, including the expansion that we are doing sir.
Pranav Bansal
Right now we are looking at about 60,000 tons that we will add within the sixth quarter, within the second quarter and after that also we can be very quick in adding capacity as and when required. Looking at the demand.
Mayank Bhandari
Okay. This 60,000 ton number was 1 lakh 1.2 lakh last quarter. Right? As you had mentioned in your call.
Pranav Bansal
Yes. So 60,000 tons. 60,000 tons is what we were supposed to add within the first quarter which is what we will add now.
Mayank Bhandari
Okay.
Pranav Bansal
A total of 1.2 lakh can be added quickly. No problem there.
Mayank Bhandari
So by the by the end of second quarter it will be 60,000 ton added.
Pranav Bansal
Yes.
Mayank Bhandari
Okay. What was the capex for this quarter, sir?
Pranav Bansal
Apex for this quarter, Sir, I do not have those numbers in hand. Maybe I’ll give those details to you.
Mayank Bhandari
Thank you sir.
operator
Thank you. The next question comes from the line of Rehan Sayed from Sri Nitra Asset Manager. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity and congratulations for a good set of numbers. Sir, like my. Most of the questions have already answered. I have left the serve a few. So like you have mentioned like go to open car to fire deck on market potential in specialty virus. So I want to asking what markets are we aiming to capture? Any segment over the next two to three years. If you can just put some light in it.
Pranav Bansal
So specialty wire as a product. I. I’m not expecting something great to happen within the next one year because there’s an approval process already that has to take place which is already started now. So as I. As I said earlier 27 will be a year where we will start getting some numbers with us. And 28 will be here where you will see full year kind of a result of specialty wire. From there on we are targeting to add capacities. Our final product, our final project is a 2 lakh ton steel cord project which we would want to start after 28.
Unidentified Participant
Okay. So my next question is around the in export side how are we competitively. Competitively positioned against China and Vietnam especially in the stainless steel wire segment. If you can just put some.
Pranav Bansal
Sure sir.
Unidentified Participant
Thank you.
Pranav Bansal
So for exports, sir, we have only targeted very all matured markets here wherein the customer is ready to pay more for a better service and a better quality. And also China plus one has been something that has worked for us along the way. So even today 75% of our export comes from US and Europe wherein there is a long approval process also. And you know, some specific types of customers wherein we are able to get our margins. With that being said also one thing which is, which is important for us, raw material cost is less than 50% of the total pricing.
Therefore our disadvantage to China is in less than 50 of the of the value.
Unidentified Participant
Okay, okay. So like last one, skipping question like what is the other income on standalone business is? 51.5.1 crore, significantly higher than previous quarters. So what’s driving this search? Like it is a treasury income, fair value gains or a one time adjustment that we have seen in this quarter.
operator
Sir, can you say that again? The voice was not very clear.
Unidentified Participant
Yeah, so sir, like in this quarter we have seen in other income on standard basis 5.1 crore, significantly higher than previous quarters. So what driving this latest treasury income, fair value payments or a one time adjusting that we have seen mean you’re talking about. Yeah, significantly higher. Yeah, from the last quarter.
Pranav Bansal
I’m g. That there other income include that forex gain, exchange gain that is around 10 22.82 million. That is.
Unidentified Participant
No, no, it’s increased like 5. No, no, no, no it is not.
Pranav Bansal
Increased actually as compared to the last year. Last year it was 55.62. Now the current year it is 22.82.
Unidentified Participant
For the first quarter only there is.
Pranav Bansal
A gain gain in foreign exchanges.
Unidentified Participant
Oh, okay. That’s what I’m asking. Okay. Okay. Thank you, thank you for clarification. And yes, thank you. This is for ourselves. Thank you.
operator
Thank you. The next question comes from the line of Sameer from Diamond Asia. Please go ahead.
Sameer
Yeah. Hi. Thanks for the opportunity. Hi Pranav. Just wanted to understand how should one. Think on the ROC roe trajectory especially. With the CAPEX coming up. You also explained the working capital changes. And focus on cash flow. But once this CAPEX hump is behind us, would you say that we will. Hit that 20 to 25% mark over. The next two to three years?
Pranav Bansal
Sure, sir. So one part of ROCE is already taking care of when we are trying to work on our inventories and debtors and you will see better result within this year itself on in roc. Even after the capex that we will do, we will still have a decent set of ROC by the end of this year. And of course as and when we progress our focus has shifted completely to ROC and you will see better results. The 25 kind of a range is what we are targeting in the very near future.
Sameer
Okay, okay, now that’s heartening. And secondly, how is the customer feedback. On some of our tire cord projects? And the product, if you can elaborate a little on that.
Pranav Bansal
Sure, sir. So in the first quarter we have already sent some samples to two of our main customers. And we’ve already gotten very positive feedback from one. And we’re waiting for feedback from another customer. So from that particular feedback itself we are quite positive of getting this done quickly. We are looking at about 12 to 15 months of an approval cycle. Hopefully from one customer and others could take maybe 15 to 18 months. But we are quite confident on the product quality that has come out from this line.
Sameer
Oh, okay. Thank you. That’s all from my side. All the best.
operator
Thank you. The next question comes from the line of Prakash from Anandrathi. Please go ahead.
Prakhar Khajanchi
Hello. Hello. Thanks for the opportunity. Yeah, just wanted to check, sir, on Sanan plan. What are the benefits you can get. From the raw mega integration?
Pranav Bansal
Sure, sir. So sir, as I said, the next two to three years are years for us wherein we want to grab market share. To do that we might have to sacrifice on our margins a little bit. But after backward integration kicking in, which is somewhere, after, somewhere at the later end of 27, we in 28 should come back to normal margins to the normal margins that you saw in FY25. So this is why backward integration is helping us. Although we will reduce our margins to grab market share through backward integration we will be able to gain back or maybe do something better than FY25 gradually.
Prakhar Khajanchi
Okay. Another thing is as you have guided right now for the 60k you are. Adding up at Dadu facility before you have told about 120kt. Right? So just wanted to check when we can say another 120 will be.
Pranav Bansal
Sir, 60kt is something that we are adding within this quarter and another 60kt will be added by the third quarter. So we were supposed to add 120kt within the first half. Now it is delayed by about 2 to 3 months. So second and third quarter is when we will add complete 120kt.
Prakhar Khajanchi
Okay. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Vidit Trivedi from Asian Market Securities. Please go ahead.
Vidit Trivedi
Yeah. Hi. Most of the questions have been answered. Just wanted to know. And you know you have already mentioned that the other capacity at the Moment is currently 35%. Just wanted to know when do you expect it to contribute materially to the EBITDA and what’s the overall current share of exports?
Pranav Bansal
Sir, the Dadri facility is already contributing in our EBITDA and in our revenue. Even last quarter we have Done about more than 20, 25% of our revenue has come from Dadri. Although it is still less than our expectation. We want this to be ramped up quite quickly because our customer responses have been very good. But we’ll see how it goes. Maybe in the second and third quarter we will see better results from Gadari. On the export front also we were at, we did about 72 crores of export which is about. About 7.5% of our total revenue.
Vidit Trivedi
That’s helpful sir. Thank you.
operator
Thank you. The next question comes from the line of Jay Patel from Patel Equities. Please go ahead.
Jay
Yeah, so my question was regarding the factoring that we are doing. So is it a recall factoring or non recall factory?
Ghanshyam Das Gujrati
Hello, It’s. Yeah, yeah. From the, from the payable side it’s. On the recourse and on the data. Side it is the only course.
Jay
Okay. So yeah, so just for the classification, any default of the receivable would be borne by Bunsalwire, right?
Ghanshyam Das Gujrati
No, no, no, no sir.
Pranav Bansal
Sir, any debtor financing is on non recourse basis. So any default will not be borne by Bunsalwire. In terms of.
Jay
So like if we are confident of the receivables not going bad. You know this non recourse is high cost also. So why did you go for non recourse?
Ghanshyam Das Gujrati
No, it is what I said is a data size is non recourse, sir. The cost is not higher, Cost is not higher and that will be borne. By the debtors itself. Okay.
Jay
And the SAN and the backward integration that we are doing so on the EBITDA per turn basis, how much would it be additional EBITDA that we could get from backward integration?
Pranav Bansal
Sir, for the steel and stainless steel project alone we are looking at maybe seven to eight thousand rupees of EBITDA per ton that will be added on on a consolidated basis. Also if we look at it, we are reducing our EBITDA as per our guidance by 20% in 26 and 27. But this 20% will come back again from the Sanand project alone.
Jay
Okay. Okay. And lastly, you know we recently we had been to tire material conference. So how is the response of the customers? You know, are they willing to like are they willing to give us a chance? Because you see our competition is from Baccat and China. So how is the response anything you.
Pranav Bansal
Could say the response is truly overwhelming. Our customers are today after us. It’s not the other way around. We have to prove to them and we have to submit them details on the timelines and what is happening on their various products. Most of the customer samples have already received by the customer customers and we are waiting their results. Overall it looks quite positive because again there’s no other Indian company that manufactures it. This is the reason why we get such a positive response from the customer today.
Jay
Thank you. Thank you so much. That’s it for myself.
operator
Thank you. Ladies and gentlemen, I request the participant to limit the question to one question for participants. The next question comes from the line of Jigar Jani from Nuvama research. Please go ahead.
Jigar Jani
Hi sir. Thank you for taking my question and congratulations on both side of numbers. My question is on the Sanan facility. I believe you guys have increased the. Capex because of earlier about 600 crore to 650 crores. Just wanted to understand what led to this escalation. And also what would be the full. On optimal capacity that is on full utilization and some. And what kind of.
Pranav Bansal
You’re not very audible. Could you repeat the question?
Jigar Jani
Yeah. Is this better?
operator
May I request you to use hence while asking question
Jigar Jani
is this better? Sir?
Pranav Bansal
Yeah.
Jigar Jani
Hello. Yeah. Yeah. So what I was asking was on this Anand facility in Gujarat we have increased our capex by about 50 crore. From 600 crores to 650. Just want to understand what led to this escalation. And also I believe on full utilization what kind of revenue are you looking purely from the Sanan facility And what kind of EBITDA per kg can we expect? And would the cash conversion cycles be. Fairly similar to what we have right. Now in our console numbers? Yeah, that’s it. Thanks.
Pranav Bansal
Awesome. So Sanan sir, first thing is that we’ve increased our capex by about 60 crores for two reasons. One is that we are putting about 60,000 tons of wire facility which was not the plan earlier. This is for stainless steel and low carbon wire. And second is even in the equipment selection we have tried to select such equipment that after some debo bottlenecking we can increase our capacity from 1.8 lakhs to 2.5 lakhs very quickly. So this is the reason for higher CAPEX coming to EBITDA and the venues. Of course Sanan being completely backward integration for 1.8 lakh tons will not reflect on our revenue.
Because we will at the end of the day consume the whole product that is coming out of Sanant from 1.8 lakh tons. What we are looking at is maybe 7 to 8 rupees of EBITDA per ton. It will add.
Jigar Jani
Okay, so this 1.8 lakh tons is just a backwards. I’ll join back. Thank you.
operator
Thank you. The next question comes from the line of Parker from Anandrathi. Please go ahead.
Prakhar Khajanchi
Hello. Yeah, thanks for the opportunity. I just wanted to check over the volumes for the Q2. And what about the EBITDA margin and. EBITDA for the second quarter?
Pranav Bansal
You mean for the upcoming quarter, sir?
Prakhar Khajanchi
Yeah, for the upcoming. Yeah.
Pranav Bansal
Sir, As I said, 30% volume growth is what we are targeting for the complete year EBITDA also we are looking at a 10 increase in our EBITDA. Of course this is. This remains very dynamic because we are on a journey where we have to grab a higher market share. So I expect this and the next year to be a little tough on our margins. Of course we are already taking steps by backward integrating and by introducing specialty wire vertical to get back on our margins and actually improve further.
But a quarter wise guidance would be not possible at the moment.
Prakhar Khajanchi
On a blended basis is anything sir.
Pranav Bansal
Like what we can overhead on a blended basis. We’ve already done about 1 lakh 4000 tonnes of volume this quarter. This should only increase Q1 being a lean quarter, we should see better results each and every quarter from here on EBITDA button. As I said we are looking at a 10% increase in absolute EBITDA. So maybe six and a half rupee a kg is the EBITDA Burton that we are looking at. We are at about 7.2 already ready in quarter one.
Prakhar Khajanchi
Okay, thank you sir. Thank you.
operator
Thank you. The next question comes from the line of Shweta Dixit from Systematic Group. Please go ahead.
Shweta Dikshit
Hi. Thank you. Just clarity. When you said you see a 20 decline in EBITDA margin is this what you said or did I miss something here?
Pranav Bansal
No, that is absolutely right, ma’. Am. By increasing market share within 26 and 27 we are taking provisions of taking about 20% decrease in our margins. Of course this 20% is not actually just a decrease. It is also a difference of product mix. For example, in Q1 we have already we have done about 7200 rupees a tonne wherein it was only a change in product mix that we have taken and not much reduction in margin to increase this market share.
Shweta Dikshit
Okay, so my question is that since when we connected last quarter your indication was around a 10% drop in EBITDA per ton for the next two next year and then it would recover slightly in FY27 and then back in FY28. But now if you guys put an EBITDA per ton reduction of 20%. What is changing on a Q? On Q basis that
Pranav Bansal
there is no change here in Q in the last quarter. Also I guided you for a 10 increase in increase in EBITDA which is the current guidance that I’m giving you today as well. In terms of EBITDA per ton, there will be a 10% decrease straight away in margin and 10% decrease because of product mix that you might see on a blended basis. So as I said earlier, 30 is the volume growth that we are targeting this year and 10% is the EBITDA growth that we are targeting this year. This remains on track.
And if you look only at quarter one, we have done a little better. But again, I, I do not want to commit specifically on the first, on the second or third quarter because it could change, you know, there could be a little bit of an up and down because of grabbing a higher market share.
Shweta Dikshit
And lastly, capacity.
operator
Ma’, am, sorry to interrupt. May I request you to come in the question queue for a follow up question. Thank you. The next question comes from the line of Sawmill Mehta from Kotak Mutual Fund. Please go ahead.
Saumil Mehta
Yeah, thanks for the follow up. Sorry. This EBITDA per ton, which is about seven, which has been a range of seven, seven and a half. Should we see that number improving in 27 or it will be more of 27, 28.
Pranav Bansal
I would say 28 would be a better year for you to see improvements here because backward integration will kick in at a later end of the FY27, but again, one or two months here and there and it might, you know, reduce. So 28 would be a better year for you to see EBITDA improving.
Saumil Mehta
So just to understand, this current year would be more like closer to six odd rupees since there will be a decline next year, we’ll go again back to seven, seven and a half which is what we are reporting. And then 27, 28, we should see an improvement from those couples.
Pranav Bansal
Yes, absolutely.
Saumil Mehta
Okay.
Pranav Bansal
And this, this is only with backward integration, with specialty numbers coming in, they should increase further.
Saumil Mehta
For sure. For sure. Thanks for the clarification, bro.
Pranav Bansal
Thank you.
operator
Thank you. The next question comes from the line of Mayang Bandari from Asian Market Securities. Please go ahead.
Mayank Bhandari
Just wanted to understand on LRPC wires you, I think that alluded to that you have got. You’re in the process of getting the certification for the same and volumes will start kicking in. So could you please give some color on that? And also the market, how is the market doing for lrbc? Sure, sir.
Pranav Bansal
So we have we have gotten some approvals? We are still waiting on BIS certification to start. A majority of our suppliers which should be coming in maybe anytime now within this month or next month after which we will see a better utilization level in terms of the market for lrpc. Right now we see a sluggish demand because there is excess capacity. So margins have reduced substantially. But of course this is again a product on which we are not very dependent on. And most of the equipment used for LRPC is also fungible. So even today we are utilizing that capacity to make other high carbon wires.
Mayank Bhandari
And what kind of margin do they make in LRPC?
Pranav Bansal
LRPC? Our expectation was about 5 rupees a kg, kind of an EBITDA. Currently it is a little lower than that. It is about 2 and a half, 3 rupees a kilogram today looking at the market price. But this should hopefully improve further.
Mayank Bhandari
Okay. And sir, one more thing. I’m just checking your 30% volume growth guidance on last year. Three 44,000 ton volume. It gives me a capacity utilization of almost 60, 65, 65%. So isn’t it bit conservative given that we are expanding a lot? So I mean our capacity seems to be expanding at a much faster rate given the growth we are targeting. Utilization remains lower than what we anticipate.
Pranav Bansal
Sure sir. So as a company we have always been at about 85, 90 kind of a capacity utilization. I understand last year was low because of the DADRI facility which has doubled our production. So this is one of kind of a case where we are doubling our production within a year. Therefore you see a lower capacity utilization this year. One of the reasons for us to also delay a 60,000 ton capex by about 1/4 is so that, you know, we’ve always maintain a decent level of capacity utilization so that we do not take our hit on margins because of additional costs.
So which is a mix that we will keep on following gradually over the.
Mayank Bhandari
Quarters utilization will be optimal. I mean how much optimal utilization you project in 27 then?
Pranav Bansal
Sir, for our company the optimum capacity utilization is always more than 80%. 85, 90 is the right number for us. This is when we get, we get the best margin than best utilization. So we would want to operate at the same pace. But again because of the substantial increase that we are targeting every quarter there could be a quarter wherein capacity utilization is lower and the next quarter we add more capacities and you know, more volumes.
Mayank Bhandari
I think the 85% utilization means you are growing by more than 40%. Yes, okay, fine. Thank you.
Pranav Bansal
Thank you.
operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I would now like to hand the conference over to Mr. Parthiv Jungsa sir for closing comments.
Parthiv Jhonsa
Thank you all for joining us for the conference call today. We at Anandrati would like to thank the management of Banshalwara Industries limited for giving us this opportunity. This concludes this conference. Thank you everyone. Have a good day.
operator
On behalf of Anandrati Share and Stocks Brokers Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.