Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Bansal Wire Industries Ltd (NSE: BANSALWIRE) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Pranav Bansal — Managing Director & Chief Executive Officer
Ghanshyam Das Gujrati — Chief Financial Officer
Analysts:
Parthiv Jhonsa — Analyst
Unidentified Participant
Deepak Kumar — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY26 conference call of Bunsal Wire Industries Limited. From the management we have Mr. Pranav Bansal, MD and CEO and Mr. Gansham Gujarati, CFO. To take the discussion forward we also have the investor relations team from AD Factors. As a reminder, all participant lines will be in the 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 your touchstone phone.
Please note that this conference is being recorded. Before we begin I would like to mention that some of the statements made in today’s discussion may be forward looking in nature and may involve risks and uncertainties. Please note the disclaimer mentioning these risks and uncertainties are on the disclaimer slide of the investor relations presentation that has been shared earlier. I would now like to hand the conference over to Mr. Pranav Bansal for the opening remarks. Thank you. And over to you sir.
Pranav Bansal — Managing Director & Chief Executive Officer
Yeah. Hi. Thank you. Good afternoon everyone and welcome to Bansalwa Industries Q4 and FY26 earnings call. Joining me today is Mr. Dachsham Gujati, our CFO. And I trust you’ve had the opportunity to review our financial results, press release and investor presentation which are available on the stock exchanges and on our website. Now. Let me start by saying that this year has been a year of a lot of major changes for the company. In fact, I would say that we have completely transformed ourselves through the process and have emerged stronger and sharper.
Let me highlight some of the major events of the last year. First, and the most important would be our improved focus on ROC and cash flow generation. As part of this approach, we deferred our backward integration project, undertook a comprehensive review of operational efficiency and realigned our strategy towards our core competencies. And as a result we were able to generate a cash flow of 333 crores exceeding our initial target of 250 crores. And we remain on track for achieving our total target of 600 crores by 2017.
And by doing this we have also remained well positioned to fund our growth ambitions while maintaining financial discipline. Second, even though there was a fire incident in our steel court shed which led to a delay in our approval process, we made meaningful progress in strengthening our specialty and Value added wire portfolio with IHTY demonstrating a strong momentum. Phase one ramping up in line and with even exceeding our expectation, we also received a faster than expected approval. Phase two of the expansion is also progressing as planned, adding 6,000 tons of capacity on the existing 9,000 tonnes.
Even on the steel quad front, we have made a major breakthrough and are expecting our very first trial order very soon. Next we started our LRPC wire product with 18,000 tonnes of capacity which is also towards the end of this year started generating positive EBITDA. During the last year we also strengthened our B2C segment with a focused strategy on expanding our distribution network, enhancing brand visibility and introducing customer centric product offerings. This segment has also started picking up and we have launched 16 new product offerings for the western and southern part of the country.
Turning to our manufacturing footprint, our installed capacity now stands at approximately 6,80,000 metric ton with the Dadri facility continuing to anchor our growth. During this year we added about 1,20,000 tons of capacity at Dadari, completing our first phase of this expansion. This facility not only supports volume growth but also enables us to deliver high value added products with improved consistency and better operational efficiency. And last, and I would say one of the most important event which is something we are all dealing with, Particularly in the month of March we saw some disruptions due to geopolitical tension involving Iran and Israel which led to volatility in global energy markets and supply chain challenges.
We also experienced a temporary disruption in natural gas. Our production took a cut to 35% which also had a short term impact on our production schedule. Despite these headwinds, our volume remained resilient increasing by 33% for the full year while EBITDA and revenue grew by approximately 20% reflecting our underlying strength of our business. As we enter the next year, we anticipate a relatively subdued start particularly in the first quarter given the ongoing situation. However, we are proactively taking measures to mitigate these impacts and remain confident in our ability to navigate the near term challenges.
But once condition stabilizes, we still expect us to return on our targeted 20% growth trajectory supported by our strategic initiatives and already available capacity. I now hand over the call to Mr. Ganshan Gujati Asura.
Ghanshyam Das Gujrati — Chief Financial Officer
Thank you sir and good afternoon everyone. Let me walk through
Pranav Bansal — Managing Director & Chief Executive Officer
The key financial and operational highlights for the quarter four and for the full year by 26. Let me begin with the volumes. During this quarter we delivered a sales of 1.17 lakhs electric tons reflecting a 20% year on year increase volume. We are Slightly lower on a sequential basis, primarily stemming from the disruption of industrial gas supply as highlighted by our MD Energy. For the full year volume stood at 4.58 lakhs metric ton compared to 3.44 lakhs metric Tony up by 26, translating into 33% year on year growth and making the highest annual sales volume achieved by the company.
This volume was sustained consistently across the quarter and supported by the broad based demand that our diversified end market exposure provides. Moving to the financial first quarter for FY26 revenue stood at 1.36 crore reflecting 21% year on year growth. EBITDA for the quarter was rupees 80 crores with a margin of 7% and net profit came into rupees 40 crores up 21% year on year. For the full year FY26 revenue stood at 4160 crores reflecting a growth of 19% over FY26. EBITDA was 324, up 17% year on year and net profit for the year excluded rupees 161 crores higher by 10% both reflecting healthy growth over the last year.
With that I conclude my remark. We can now open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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, we will wait for a moment while the question queue assembles. Our first question comes from the line of Partif Jhonsa from Anand Rati. Please go ahead.
Parthiv Jhonsa
Hi. Am I audible, sir?
Operator
Yes.
Parthiv Jhonsa
Yeah. Thank you for the opportunity sir. And congratulations. Especially you know, during the third month of the quarter still you have been able to get keep your volumes intact. Congratulations on that. So my first question is pertaining to one of your opening statement where you stated that the year has started. On bit of a subdued note, is it possible to you know, quantify what is the issue particularly from fig. Gas. What is the gas availability today? What can be, you know, the headwinds or what can be the volume disruptions particularly for Q1 of this current financial year.
Pranav Bansal
Yeah, sure sir. So Q1 we started with of course lesser volumes. In fact last. Last month our volumes were cut to an extent of 35%. However those are still. Those are back. We are now expecting about 80, 85% kind of our volumes to be there. But other than volumes there is also an issue in demand as of now, other than, I would say the automotive segment, all other segments that we see, we still see a lack of demand. So all our, all our customers, all segments are still, you know, undergoing these issues.
And till the time this doesn’t go back to normal, I am not expecting, you know, sales. Sales also visibility to be there.
Ghanshyam Das Gujrati
It is difficult
Pranav Bansal
For me to quantify this. I think we are all on the same boat and, you know, we’ll have to see how it goes. But yeah, what I can say is that once we normalize, I think overall we are still expecting, you know, 20% kind of a number to be there. But of course, only once we normalize.
Parthiv Jhonsa
Sure, we respect that, sir, that you have kept your, you know, your volume guidance intact at say 20% growth. But just wanted to just add on to that that despite, say, you know, volumes are down considering the gas disruption and the demand, I believe the prices would have been much better. Right, because the steel prices have gone up substantially, especially post February, post the, you know, starting of the year, the prices are already up on the range of almost about 10, 15%. So will that actually support your top line despite you losing on the volumes?
Pranav Bansal
Yes, I would say that would definitely support our top line, but that would still not translate to real earnings. At the end of the day, our business is still driven by volumes and EBITDA per ton. In fact, if we talk about only EBITDA because of operating at a lower base, even our cost is higher. So our EBITDA per ton will also take some hit. Revenues might be intact or might be higher, but at the end of the day, it is all about the quantities that I am able to sell.
Parthiv Jhonsa
Is it possible to quantify that, sir? The number by any chance?
Pranav Bansal
So right now it is very difficult. I mean, every day is a new day. Every day we have different challenges. It is definitely getting better. But yeah, we’ll still have to see, you know, how long this happens. So
Parthiv Jhonsa
My second question was particularly to the steel code business. You know, we have seen a since ipo practically we have been, you know, stating that the approvals would be there. However, there were some, you know, headwinds and now I think about a call or two protocol back. You have said it that you will be entering the phase two trial process. This call. You have stated that you are almost on the verge of getting the first trial order of the first order. What can be the quantum and what can be the delta?
Now that finally things have been looking up for use from the three cord vertical and from which customer have been receiving these orders which of the automobiles come.
Pranav Bansal
So the order we would be receiving would be from the top four companies in India. Yes, there are years started slow because of the fire incident. But we picked up. It is a. It will be our first trial order. Once you know, we supply that order and if the customer finds everything to be intact, then we can expect a regular order from these customers. Now when that will happen, how that will happen, we will keep you updated, but it is very hard to predict today.
Parthiv Jhonsa
So those phase two trial is already being completed, right? If I’m not mistaken?
Pranav Bansal
Yes, with some. With one. With one customer. Which we would expect this order from? Yes, There will not be a phase two trial process. It will only be a sample and then some. Okay,
Parthiv Jhonsa
Got it. So. And if I may quickly squeeze in the last one from my side. Is it possible to quantify what is the even, you know, broad benchmark numbers are fine, but is it possible to quantify what is the share of say low carbon, high carbon and specialty in top line as well as the EBITDA in percentary terms is also fine.
Pranav Bansal
Yeah. So overall our product mix has remained the same. I think 55 ish percent of low carbon, 25 high carbon and 20% stainless steel in general. This is the broad thought process that we have and there has not been a major change here.
Parthiv Jhonsa
But then low carbon would have much lower EBITDA contribution. So that means your EBITDA would be much higher from high carbon and stainless as compared to low carbon. Is it, Is it that understand? Yeah. So what does our share there at the EBITDA level?
Pranav Bansal
Sir, we will not be able to give you separated beta levels for all streams. What we were, what we would be showing to you is the EBITDA pattern on a blended basis. This is where we focus on.
Parthiv Jhonsa
That is quite helpful, sir. If I have any further question, I’ll join back. Thank you so much and best of luck.
Operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question comes from the line of Pratik Singh from IIFL Capital. Please go ahead.
Ghanshyam Das Gujrati
Thanks for the opportunity. So the first question was largely on the industry side. Given it’s a low margin industry and we are the market leaders here, I would assume this cash problem would be faced by a lot of your competitors who are in a much smaller scale. So fair to assume that they would be in pretty much bad situation right now if demand is weak and we can expect to gain market share despite demand being weak right now.
Pranav Bansal
So sir, if you Break this demand situation into different sectors that we have. I would say the automotive sector has been doing well there. We are still able to grow even through all of this. So yeah, I think for us automotive is okay. Every other sector, whether it is consumer durable, infra, all of there we are seeing a very sluggish demand. And this is because of two reasons. One, one is there has been a big price increase in steel in the last three months. And the second is of course the situation we are all going through.
So. But yeah, I mean it still looks positive. Every day is getting better. So yeah, let’s see what happens.
Ghanshyam Das Gujrati
Understood. And in the past when we had stated that to gain market share we would be taking a hit on our margins. Is that phase largely behind us or do you think to gain this 20% growth this year as well, our EBITDA margins or EBITDA per ton would be likely lower than what we showed this year.
Pranav Bansal
No, from this year there is no more. There is no impact, negative impact on EBITDA which we are, which we foresee in terms of our regular operations. If we grow at 20%, our EBITDA should also grow at 20%. Of course, you know, this current situation we have to keep aside. But once we turn back to normal, I think our EBITDA per 10 should be same, if not better.
Ghanshyam Das Gujrati
Okay. And lastly, what’s the update on the two units? I think Balaji Carbon which were going to be shut down. So what’s the plan there right now?
Pranav Bansal
So those two units again are operating at almost negligible capacity utilization. All of it has mostly shifted to, I think maybe the Next, the last 4, 5% that would be remaining would shift in another maybe 6, 8 months.
Ghanshyam Das Gujrati
Okay,
Pranav Bansal
Thanks Pranav. All the best. I’ll join up with you. Thank you.
Operator
Thank you. A reminder to all participants, please press star N1 to ask a question. The next question comes from the line of Disha from Sapphire Capital. Please go ahead.
Unidentified Participant
Hello.
Operator
Yes, please go ahead. Disha.
Unidentified Participant
Am I audible?
Operator
Yes. Yes, ma’. Am.
Unidentified Participant
Yeah. Thank you so much for this opportunity. So sir, firstly you mentioned that currently also we’re operating at around 80, 85% volume. So we see 20% production cut in the month of April as well. So going forward, how confident are we to maintain this 20% sort of guidance that we’ve given? You see any downside? Because you mentioned that auto sector is doing that contributes I think around 22% to our revenue. So is there any sort of downside, you see to this 20% guidance?
Pranav Bansal
Again right now it Is very difficult for me to, you know, give you a number because it is a very dynamic situation that we are all in. But yes, as of now, what I see is that situation is getting better. Right now there is sluggishness in demand, but we feel that it is getting better every day. So we are hoping for the best. But once it turns back to normal, yes, we should be able to grow at 20% because we have that kind of a capacity available with us from the starting of the year.
Unidentified Participant
During the current, I’ll be fairly confident we’ll be able to do 20% growth
Pranav Bansal
Once we return back to normal. Yes, 20% growth is what we should be able to do.
Unidentified Participant
Okay, and this IHTY segment, this new segment that we added, what sort of capacity utilization were we at in Q4?
Pranav Bansal
In Q4, I would not have the right figures, but yeah, I would say in the month of March alone, we were at about 25% capacity utilization in IHD and which is increasing by maybe 10 15, which should increase by 10, 15% every month.
Unidentified Participant
What sort of EBITDA per ton do we see in this month?
Pranav Bansal
Right now it is not contributing much, but once we touch 50% capacity utilization, I think it should turn into positive EBITDA.
Unidentified Participant
Okay, and what sort of capex are we looking for? FY27.
Pranav Bansal
FY27 or in fact, even in the years later, I think our capex strategy has is now focused on on our cash flows. So what we are expecting is majority of or maybe 60, 70% of our cash flows we will pull back into capex. So maybe 150, 200 crores, something like that to generate enough capacities to grow at 20%.
Unidentified Participant
And the product mix that we you mentioned, 55% low carbon and 25 high and 20% specialty that we expect to be pretty much stable in FY27.
Pranav Bansal
Yeah, that should be stable in this year as well. That’s specialty. Right now in a percentage is Nothing. So it’s 20% of stainless. But yes, in this year, specialty should also come as part of this product mix.
Unidentified Participant
Okay. Okay, fair enough. Thank you so much. That is it from my side.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Deepak from Sundaram Mutual Fund. Please go ahead.
Parthiv Jhonsa
Thank you for the opportunity.
Deepak Kumar
Am I audible?
Parthiv Jhonsa
Yes.
Deepak Kumar
Yeah. Hi Pranav. So my first question is with respect to our payables. So this year we have seen a sharp spike in our payable both in absolute terms as well as Increase in the number of days. So just wanted to understand. Have we structurally made any changes in the way we are sourcing? Let’s say instead of a mill, are we procuring more through dealers? On account of which we are getting better credit term. Hence the payable days have improved for us.
Pranav Bansal
Yeah. So sir, we are still buying from our main suppliers. And most of those suppliers we are still paying for them. We are still paying them advance. But we are also. We’ve also included a lot of discounting limits from this year. Which is where you are seeing the table green high. So this is part of the discounting facility that we have done in purchases. Vendor is still getting advanced payment whereas we get that kind of a credit.
Deepak Kumar
Okay. Okay. So if I understood correctly, you’re still procuring from the steel mills. But instead of paying them on an advanced basis, you are using purchase invoice discounting where the bank pays them and you pay the bank later. Correct?
Pranav Bansal
Yes, absolutely.
Deepak Kumar
Okay. Okay. Thanks. Thanks. And do you see means going forward this number to go up further. I mean to say your payable days going up higher. So as you increase your banking or discounting through let’s say the banking methods means. Or do you think that right now it has come at a stable level?
Pranav Bansal
No sir, it can go higher. As in when you know we are trying to reduce our total working capital is. So in that effort it could go higher gradually.
Deepak Kumar
And will that also lead to increase our interest expense?
Pranav Bansal
That will. That will definitely lead to increase in our interest expense but not disproportionately. So we are already paying that interest even today. But that is done through our regular limits.
Deepak Kumar
Okay, got it.
Pranav Bansal
So there should not be a further increase in interest cost because of this.
Deepak Kumar
And second question is on our balance sheet. So if I see that from last presentation to this presentation we have expanded our capacity by around 60,000 metric ton, right? And despite that if I look at your balance sheet, we are having an 213 crore of capital work in progress. So just wanted to understand what is that.
Pranav Bansal
So this capital work in progress is part of the 60,000 tons also which we have installed but not commissioned till late. That will happen in this month, month of April 1and 2nd. This is also part of some ongoing investment to further enhance our Dadri facility. So from this 6.8 lakh ton, we would want to this year add another 1.2 lakh tons so that we are prepared for the year after this. This is where you know this kind of investment is going in.
Deepak Kumar
Okay. So if I understand Correctly. So we were in the process of adding around I think 90,000 tons in Sanand. Right. And you are saying now that from 6.8 again we’ll be adding 1.2 lakh ton in Dadri itself. So would it be fair to assume in FY27 you will be adding 1.2 in Dadri and let’s say 0.9 in Sanan
Pranav Bansal
So that 0.9 will come towards the end of 27. We will only be able to utilize that in 28.
Deepak Kumar
Okay. Not in 27.
Pranav Bansal
Therefore, for this complete year we would still be adding some capacities here and there. For example, the ongoing IHTY expansion of 6000 tons is happening right now. There are some expansion for low carbon, high carbon also
Deepak Kumar
For us to
Pranav Bansal
Have the capacity headroom to grow at 20% for the next two, three years.
Deepak Kumar
Got it. So as per your internal estimate, let’s say by end of FY27 our capacity will increase from 6.8 lakh to what number?
Pranav Bansal
From 6.8 lakh it should be at least 8 lakhs. And with Sanand coming in it, it might be 8.5 or 8.6, something like that.
Deepak Kumar
Okay, so you are saying because the demand situation is so dynamic that you would want to tweak your CAPEX number that that’s the correct way to read about it. Right.
Pranav Bansal
So our CAPEX investment side should be capped at 200 crores or something like that. We should not be going higher than that for a year to be growing at this pace.
Deepak Kumar
Okay, okay. But yes, we see
Pranav Bansal
A good demand other than this situation. We were already utilizing a good amount of capacities even in last quarter. If you leave March aside, at least 15, 16 days of March aside, we were doing a good run rate. It is only in the last 15 days that we took a hit. Even then we were able to, you know, do about 1 lakh 20,000 tonnes in that quarter. So we should, I mean we have a good opportunity once situation returns to normal. I think yeah, we can do something good. Therefore, the 20% number growth thought process still remains.
Deepak Kumar
Okay. And in this 1 lakh 20,000 capacity that we’re looking to add in Dadri itself, would it be equally split between low carbon, high carbon and specialty? Or it would be more leaning towards, let’s say low carbon and high carbon.
Pranav Bansal
It would be. Yeah, I think it would be similar to the current product mix that we have. Not a big change
Deepak Kumar
In
Pranav Bansal
Some ways. Maybe some specialty would increase disproportionately. But yeah, other than that, I think overall things
Deepak Kumar
Okay, and one, this last question on this steel cord business. So I think last time you indicated that we were undergoing some field trials and now you’re saying that some trial runs are going on. Is it similar to the field trials or is it that the field trials has been completed and you are, you will be sending your first trial batch and then ultimately if that gets approved, you will start commercial supply.
Pranav Bansal
So sir, generally the thought, the process is that once we receive a sample approval, the product goes for field trial. But with some customers, you know, because of the result that they’ve gotten from the sample itself, there are some customers who have removed the field trial process and therefore we are expecting a trial order from them.
Ghanshyam Das Gujrati
Once
Pranav Bansal
We, once we receive the trial order, once we supply them, they test it, then we can actually expect a regular supply level.
Deepak Kumar
So even
Pranav Bansal
Though there was a delay because of the fire, because of this, we’ve been able to cover that time also.
Deepak Kumar
Okay, and that is expected to happen in H2 of this fiscal year, correct?
Pranav Bansal
Yeah, that’s the, that’s the thought process. But that’s only one customer overall. We are still expecting the other customers to be in line by the end of this year.
Deepak Kumar
Okay. Okay. Thanks Pranav. Very helpful. All the best. Thank
Pranav Bansal
You. Thank you.
Operator
Thank you. The next question comes from the line of Hit Shah from Dalal and brochure stock broking. Please go ahead.
Parthiv Jhonsa
Yeah, thank you for the opportunity. Am I audible?
Pranav Bansal
Yes, sir.
Parthiv Jhonsa
So firstly my question is on the sand and balance land. So post three scrapped of our plan for know, the backward integration. So in the last concord also you had said probably the decision to sell or to come up with another capit should be taken in the next quarter or so. So I mean have we come up with any decision on that balance 3% land?
Pranav Bansal
So sir, the balance 50 line, we would be trying to sell it off to get that cash in. We have deferred our backward integration project and for the next couple of years it does not fit in our, you know, strategic investment scheme. So any decision that we take on backward integration would at least be after those two years because we already have speciality well which is now turned very well for us and the regular market of high carbon, low carbon, wherein we would want to spend most of our investments.
Parthiv Jhonsa
Got it. So the next question is with regards to our EBITDA button. If you look at, you know, at this particular quarter, it was the lowest in the last eight quarters. I’m talking excluding other income. So, so what was the volume mix?
Pranav Bansal
So there was not a major Change in volume mix. The EBITDA per ton impact that you see would also be because of the last 15 days in March because. So there was a substantial increase in our gas prices to a tune of four to five thousand rupees a ton on our product level, which is something that we were not able to absorb, which is something that we had to absorb because we have a 30 to 40 day order book.
Parthiv Jhonsa
So although we have started
Pranav Bansal
Getting that increase from our customers, but the 30 to 40 day order that we have has to go with that kind of a cost level. So we have taken some hit in EBITDA only new 15 days.
Parthiv Jhonsa
Got it. Fine. And just a reiteration of what the previous participant had asked regarding the new 1.2 lakh ton, you know, capacity that will be coming up at Libri. So FY27, the total capacity would be 8 lakhs. Right. And utilization levels, what can we expect? I mean bandage.
Pranav Bansal
So that depends on how the year goes. But yes, we have already done about 4.8 lakh, 4.6 lakh tons this year. We were expecting to increase this by at least 20% once if it was a normal situation. So whenever it turns to normal, I think we will be in that run. Right?
Parthiv Jhonsa
Okay. So I mean just to understand when, when will that 1.2 lakh capacity be available?
Pranav Bansal
So that will be towards the end of the year because we already are sitting on a reasonable capacity right now. So for the first half of the year at least we don’t need needed. And with this situation, you know, we, we have also tried to, you know, delay some things by two months or three months till whenever it normalizes. So we don’t again want, we, I mean the thought process is to. For us to be able to utilize the capacity whenever we have it. We don’t want to sit on idle capacity so we can tweak it as per our requirements.
Parthiv Jhonsa
And finally, so the fan and one entirely will be available in effort. Right? Because that would be available in December 27th or probably last quarter of 28. FY28 is my understanding correct?
Pranav Bansal
Sir, we, we have a lot of flexibility here because we have our own machinery division. So we have a lot of flexibility as to, you know, when, which month, which quarter we need to invest. Looking at our utilization levels, our thought process overall is to generate 20 capacity every year and grow at 20% keeping at a, keeping at a good utilization level.
Parthiv Jhonsa
Got it. All fine. That’s all from my side. Thanks a lot. Thank you.
Operator
Thank you. The next question comes from the Line of Samay Shah from Novama Wealth Management. Please go ahead.
Parthiv Jhonsa
Yeah, thank you for the opportunity. Sir, you mentioned that the total capacity is now at 6 lakh 80,000 metric tons. So would you be able to mention what is the split between high carbon, low carbon and stainless steel? And also what were the capacity utilization on those in FY26?
Pranav Bansal
Sir, our general slit in terms of capacity or in terms of utilization is generally Ms. Which remains within the range of 55 to 60%. High carbon which remains in the range of 25%. So maybe 20 or 30 here in average 25% and stainless steel at about 20%. Specialty is, you know, right now less than 3, 4%.
Ghanshyam Das Gujrati
Okay.
Pranav Bansal
Overall we were at 67%. Overall we were at 67. Capacity utilization.
Parthiv Jhonsa
Okay, okay, fair enough. That helps. And the capacity that is coming up now at Dadri of 1.2 lakh, even that will be split in the same, uh, ratios.
Pranav Bansal
Yes, broadly that will be the ratio in which it would be.
Parthiv Jhonsa
Okay, fair enough. Thank you.
Operator
Thank you. The next question comes from the line of Pujan Shah from Molecule Ventures. Please go ahead.
Unidentified Participant
So first of all thanks for the opportunity. I might be new to the company so my, the question might be repetitive so please spare me for this. My first question pertains to the steel corn. So if I map on the industry size that could be. Industry size is roughly around 2.5. And if we expect a growth rate of 11% as well, that industry could grow at 4 lakh tons. Right. So in that space first BCAT has already been planning to expand. Second Chinese is also been expanding into Thailand and, and then they are trying to supply from that.
So how we are looking at the scenario and are we still planning to go ahead with a 2 lakh tons of capacity in this specific. In this steel core?
Pranav Bansal
Yeah, sure. So you are definitely right on all these assumptions. And of course we are planning to go ahead with this capacity. That’s the main focus area for all of us in the company. Because there is only one company in India today making this. We are the only and the first Indian company to start. Therefore we see a good traction in this product. From our current, from all calculations that we have done so far, even the pricing looks okay. The assumption that we made still stand. Correct. And there is also a duty whenever there is an import.
So we also have a 10% arbitrage when we look at import prices. So it has, it is a good business. As of now all our calculations support it. And this is the plan. Once we get our approval we, we Our definite goal is still 2 lakh tons of steel cotton.
Unidentified Participant
Okay, so the second question is related to the same. So if you look at the total, let’s suppose in FY31 when we conclude with our 2 lakh tons of capacity we might spend around 2, 2500 crores. So in that thing if we broadly calculate we get a revenue of roughly around 2500 to 2700. In which if we calculate the margin of 25% that makes a roughly calculation of 600 crores. Right. So in that 600 crores are payback should be around 5 to 6 years. Is that assumption correct or am I calculating something wrong?
Pranav Bansal
You’re absolutely right. However, because it will be spent in the next five to seven years we’ve taken a ballpark range of 2000 to 2500 crores of total investment for 2 lakh tons. And EBITDA as of now will range between 600 to 800 crores.
Unidentified Participant
Got it? Got it sir. And so just want to understand what uses so much confidence when we have been investing. Because then ultimate the total pie, if we look into it we will be the largest catering to this segment. And if, let’s suppose any competitor comes up like let’s suppose example Tata Steel. So if they comes up, they might not go with a small kind of investment. They can, they can also spend something large. So what users confident that we could be the market share leader and we were able to utilize our facility up and running at 100%.
Pranav Bansal
Sure sir. So sir, there are what we at least feel a lot of barrier to entry in this product. Technology is one, to get the right people is another. We already have about 60 trained people, you know in this field and it is not very, it is not very easy to get the right set of people technology. Also we have exclusive collaborations, exclusive tie ups with our suppliers and they are probably very limited turnkey solution providers in this product. Third, there is a long approval process right now we are confident on this approval cycle and we’ve been able to manage it till now as well.
Because there is nobody in the country but once there is a supplier it will go back to a linear approval process. And lastly I would say is also our style of investment. So because we have our own machinery division, because we have been in this industry for about 85 years and we have this diversification into a lot of different products we are also able to keep our Capex per ton very low which is the same as, which is the same case in steel COD as well. The industry norm for this Would be at least 50% higher than what we are looking at and which is what we’ve already done in the first 20,000.
Unidentified Participant
Okay, so just want to get some sense on the approval side. So let’s suppose example if a tire company approaches you or we approaches a OEM tire manufacturer. So just to understand they will start manufacturing our steel cord applicability with a new product they have been launching. Right. So if they have launched 10 products before the approval, they might be continuing with the company which they have already approved or they’ve been approved. Like let’s suppose example B card. So if they had approved a B card then they will continue with the process.
But the new products launches will start with us. That’s the assumption. Correct. Or they also replace the older models as well with Wirecorp.
Pranav Bansal
So the main consumption will happen in the existing models. In fact, in the newer models they would choose to go with existing established players first and then approves. So what our market would be will be the regular tires. Will be the regular product that they make today. That is where we are taking the chunk.
Unidentified Participant
Okay. Okay. So. So why do they shift? So one of the. Obviously the reason would be. But on the overall cost side they might have a 5 to 7% of the total cost in their total the manufacturing cost. So why do. Why do they shift specifically to us in the going model or the model which is up and running. And so what would be the key reason it might be obviously 1%, 2% cost saving could be there. And second, the new product launches that have much more acceptability of our steel code versus their. So is that how works or it is very different than what I am assuming?
Pranav Bansal
No, you are right. But other than that I think it is also a security of supply chain. Today they are not able to buy anything from India. Everyone has to import. And I think in the last five, seven years we’ve all seen, you know how disruption happen if you are dependent majorly on imports. So I think that is one big factor. Steel card as a percentage of the total cost is not a big number. But it is everything to make a tire. So this is a very important product. And everyone I would. I assume and I feel that all customers would be happy to get an Indian source.
This is our. This is our assumption.
Unidentified Participant
Got it. So good. Thank
Pranav Bansal
You. And
Unidentified Participant
Continuation with ISG and osg. We have been kind of gonna receive all the bis I think approval from the authority. Are we on place? Do we have received or what is current status? Hello.
Operator
Sir. Please go ahead.
Pranav Bansal
Yeah, sorry I’m not able to understand your question. Maybe you can take this later. Okay. Okay.
Unidentified Participant
Thank
Pranav Bansal
You.
Operator
Thank you. The next question comes from the line. A reminder to all participants, please press time one to ask a question. The next question comes from the line of Kunal from Veritas Research and Advisors. Please go ahead.
Parthiv Jhonsa
Yeah. Hi. Hi. Thank you for the opportunity. I’m audible.
Pranav Bansal
Yes. Yeah.
Parthiv Jhonsa
So Prana,
Pranav Bansal
I just wanted to understand. See RG being more conservative due to the current issues and the geopolitical issues that lead to the volume growth guidance of 20% as earlier, I guess we used to grow at 30% plus and even though we had guided 30% 35% right in the, in the previous calls. So just to understand your thought on the guidance and going forward, like even
Parthiv Jhonsa
If you can throw some light for FY28 or so.
Pranav Bansal
Sir, as a company, even in the last 10 years we’ve grown at 20%, not 30%. So there has never been a 30% kind of an averaging that we’ve done. Our estimate for 30% was only last year.
Unidentified Participant
That was because
Pranav Bansal
There was a lot of pent up demand that we had because we were not able to have our capacity up and running quicker. Therefore we had a 30 estimate of quantities last year. Now that the situation is normal, I think the goal overall for the company is to grow at around 20, 25%. You know, each year, some year could be a little less, somewhere could be a little more. But 20% in the broad understanding.
Parthiv Jhonsa
So you’re talking about volume growth, right?
Pranav Bansal
Volume growth. Yes, volume as well as ebitda.
Parthiv Jhonsa
Volume as well as.
Pranav Bansal
I mean, yeah, the growth. When I, when we, when we say growth it is majorly our ebitda.
Parthiv Jhonsa
Okay, okay, understood. And just to follow up that in the, in the year of FY26, what was the capacity utilization we had? The
Pranav Bansal
Capacity utilization for FY26 was 67%, 68%.
Parthiv Jhonsa
Okay. Okay. And for FY27 are we aiming to be at 80% or plus?
Pranav Bansal
Sir, are. Yes, I think 80, 85 is where I get the best return ratios for my investment. But because we every year we also need to invest further 20 growth next year. So we, we will see. I mean 70 plus is what we should look at at least.
Parthiv Jhonsa
Okay, okay. Another just a bookkeeping question. So in the previous call that you highlighted, most
Pranav Bansal
Of the capex has been done and hence the depreciation and the finance cost has been capitalized and we will going to be see the bad growth. I’m going to say bottom line growth going forward. Forward So I just wanted to understand. Even this in this quarter pad was largely driven by the lower taxation, taxes and benefits and all. So can you please throw some light? Is my reading
Ghanshyam Das Gujrati
Correct,
Pranav Bansal
Sir? Majority of depreciation that we had to take, as we have already done now any increase in depreciation will happen only with increase in actual EBITDA levels also. So there is not going to be a disproportionate extra investment or extra depreciation or even interest that we should see in the long run. So our thought process is whatever. If let’s say the ebitda grows at 20%, our PAT and pat and sorry, our depreciation and interest should also grow around the same range. Not higher, not very low.
Okay,
Operator
Thank you. The next question comes from the line of Pratik from IIFL Capital. Please go ahead.
Ghanshyam Das Gujrati
Hi, thanks for the follow up. So just clarification for this 1.2 lakh terms that you are adding this year the capex would be around 150 crores.
Pranav Bansal
Yes sir. The broad range that we want to remain is around 200. 150 to 200 crores every year.
Ghanshyam Das Gujrati
Okay. But to grow at 20% of this 1.2 lakh number every year will also need to keep going up because the base will keep getting bigger.
Pranav Bansal
Yeah. So as of now for the next two, three years I think average 150, 200 crore average. And then of course every year it should increase by 20%. Our investment if we are also growing at 20%.
Ghanshyam Das Gujrati
Okay, but after a point when you decide that you have to go into steel cords, then your volume growth may slow down because much of your capability going through a low volume steel code business which generates higher revenue.
Pranav Bansal
Absolutely. That’s why I’m talking about, I’m talking about investment and not just absolute volumes here. So our thought process is more on investments. Now wherever we make investment volume could be, differ, could, could be different.
Ghanshyam Das Gujrati
Understood. And so you said that currently you, you’ll be sending trial volumes to, to one of the tire customers. So. So whenever the final order comes, when do you think in our assessment when can we start doing 20 kilotons run rate in steel courts? I mean which month or which quarter almost. Is it like 3, 4/4 away or more than a year away? How should you look at it,
Pranav Bansal
Sir? Although because of the fire we definitely had a pushback of six months. But because of this expedited approval also we might see some numbers within this financial year.
Ghanshyam Das Gujrati
Okay. Okay. And currently are we selling hose wire from that facility or still not being sold?
Pranav Bansal
No, we are. We are selling hose wire from this facility. That is where we are. We are now almost. We are trying to cover most of our main cost through selling Oshoir.
Ghanshyam Das Gujrati
Understood. And this last question, when you said that the gas impact in terms of pressing per ton or costing per ton was around 4 to 5,000. So the way to look at it is that if you’re making 7000 rupees per ton EBITDA only for those 15 days your EBITDA would have gone down to 2 to 3000 rupees per ton. Is that understanding correct?
Pranav Bansal
Yes, but we also had. We also carry 10 to 15 days of inventory. So our inventory also held during that time. It was not a complete hit that we had to take for the first 15 days.
Ghanshyam Das Gujrati
Okay, so. So pricing has completely gone back to normal or have you been able to completely pass it down or. There is still some hit in terms of EBITDA patterns on gas as of now.
Pranav Bansal
So sir, one good thing is that we have a very cost plus business model wherein we keep 30 to 40 days of inventory and 30 to 40 days of order book. Now this being a very exceptional increase consumable, is not something that we are able to to take on previous orders. So any orders that we booked after, you know, are being impacted in our cost. We have taken our increase. So even today the orders I’m booking are with an increased pricing considering all this increase that has taken place. But for 30 to 40 days of order book, that order will somehow go at the old pricing wherein we are taking that pricing time.
Ghanshyam Das Gujrati
Yeah, you know, that’s why. Yeah, fresh orders only. I. I wanted to ask about. Understood, understood. Thanks. Thanks a lot. You know,
Pranav Bansal
Thank you.
Operator
Thank you. The next question comes from the line of Partif Johnsa from Anand Rati. Please go ahead.
Parthiv Jhonsa
Thanks for the opportunity, sir. Just continuing on previous participation, a participant question on the gas. Just wanted to understand what is the current scenario looking like? Are your suppliers, you know, asking for a higher price or what is the escalation in the prices? Just to give a. Can we get a broad understanding as far as gas prices are concerned?
Pranav Bansal
Sir, gas prices have still not returned to normal. They are still escalated in some areas. In some units it is about 50% in some, in some units it has gone up to 300% as well.
Parthiv Jhonsa
So what would be some blended escalation for quarter one?
Pranav Bansal
Blended I would say would be at least about 50%.
Parthiv Jhonsa
Is it a fair understanding to us? Is it a fair understanding to assume that for quarter one, for example, if your ebitda per ton was about anywhere between six and a half to 7,000. And you know, just continuing on, couple of other commentary would be possible of an assumption that at least for the month of April your EBITDA would be in the range of say about 1500 to 2500 or is that understanding way too low? Then what are the current scenarios,
Pranav Bansal
Sir? It depends on. So right now we are only in April and we are seeing, right now we are only, you know, in the first month and we are seeing demand coming back. So I don’t think it should, the whole of the first quarter should go to that extent. I’m sure we will see some recovery happening. And this two and a half thousand rupee a ton level is only for the 30 to 40 days of order book. So the whole quarter is not going to be that. After that it will return to normal
Parthiv Jhonsa
Days.
Pranav Bansal
I think at least 50 days of standard EBITDA we should get.
Parthiv Jhonsa
Perfect. Perfect. That sounds good. So the second question is on steel core. Considering one of the large global brand is there in the market, you know, supplying the material to the tire manufacturers in quite a few years, right? What, how much discount or what would be the delta you need to incur to this to gain the market share. Just wanted to understand, to just push the volume. What is the kind of, you know, ASP reduction you need to consider compared to that particular mnc?
Pranav Bansal
So right now I think it is still too early to you know, judge the exact pricing level as and when we, you know, move forward in the journey. I think we will come to that. But we, we do not expect a very big difference between us and you know, anybody else because right now we are the first Indian company. So I am, I, we should get that advantage at least, you know, if not just being a new entry, not reducing price to a very large extent.
Parthiv Jhonsa
Perfect. Perfect. That sounds good. Thank you. Thank you.
Pranav Bansal
All right, thank you.
Operator
Thank you ladies and gentlemen. Due to time constraints, that was the last question for today. I would now like to hand the conference over to Mr. Pranav Bansal for the closing remarks.
Pranav Bansal
So thank you everyone. Thank you for staying connected. Thank you for watching us closely. I hope we were able to answer all your questions. If there are anything that is left, please let us know and we will get back. You guys. Thank you for joining us. Thank you.
Operator
Thank you sir. Ladies and gentlemen, on behalf of Bansal Wire Industries Ltd. That concludes this conference call, thank you for joining us and you may now disconnect your lines.