Steel Stock hits 10% upper circuit after its sales soar 33% YoY

SYNOPSIS: India’s largest stainless steel wire manufacturing company reported strong FY26 volume growth despite a minor Q4 impact from supply disruptions, with healthy YoY gains and a slight sequential decline following record-high volumes in the previous quarter.

During Thursday’s trading session, shares of India’s largest stainless steel wire manufacturing company and second largest steel wire manufacturing company by volume hit a 10 percent upper circuit on BSE after reporting Q4 FY26 sales update with a strong volume growth despite supply issues.

With a market cap of Rs. 3,975 crores, shares of Bansal Wire Industries Limited are currently trading in the green at Rs. 253.9 on BSE, up by more than 8 percent, as against its previous closing price of Rs. 234. The stock has delivered negative returns of over 32 percent in one year, and has fallen by around 28 percent in the last six months.

What’s the News:

According to the latest disclosures on the stock exchanges, Bansal Wire Industries Limited reported its sales volume performance for Q4 FY26, reflecting continued operational strength despite external challenges.

The company noted that while it had achieved its highest-ever volumes in the previous quarter, ongoing geopolitical tensions in West Asia led to temporary disruptions in the supply of industrial gases across India. This, in turn, had a mild impact on production, although volumes remained at healthy levels overall.

The company reported a strong performance in Q4 FY26, with total sales volume rising to 1,17,644 MT, marking a growth of around 20.3 percent compared to 97,821 MT in Q4 FY25. However, on a sequential basis, volumes declined by around 3.3 percent from 1,21,702 MT recorded in Q3 FY26.

For the full year, the company delivered robust growth, with total volumes increasing to 4,58,054 MT in FY26 from 3,44,710 MT in FY25, reflecting a significant year-on-year growth of about 32.9 percent.

Financials & More:

Bansal Wire reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 11 percent, from Rs. 925 crores in Q3 FY25 to Rs. 1,029 crores in Q3 FY26. Likewise, its net profit increased during the same period from Rs. 42 crores to Rs. 43 crores, representing a marginal rise of about 2 percent YoY.

The company’s cash flow generation has improved significantly, with around 80-90 percent of its FY26 target already achieved. Backed by strong demand visibility and disciplined execution, it remains confident of delivering around 35 percent volume growth and nearly 20 percent EBITDA growth for the full year, while continuing to enhance asset turnover and return on capital employed (ROCE).

Bansal Wire Industries Limited is principally engaged in the business of manufacturing and selling wires of multiple varieties, including mild steel, stainless steel, high carbon, etc., of various categories, shapes and sizes used in the automobile, infrastructure, fashner, kitchen-ware and other industries. Its manufacturing units are located in Ghaziabad and Gautambuddha Nagar, Uttar Pradesh.

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