Bharat Wire Ropes Ltd

ESOP Allotment Details

• 1,98,337 equity shares allotted under BWRL ESOP Scheme 2022.
• Post-allotment share capital stands at Rs 68,78,29,850 with 6,87,82,985 equity shares.

Re-appointment of Whole-Time Director

• Change type: Re-appointment of Mr. Sushil Sharda as Whole-Time Director.
• Effective term: five years from 19 May 2027 to 18 May 2032.
• Date of re-appointment: 07 August 2026; subject to shareholder approval.
• Profile: Whole-Time Director and Finance Head; 31 years' experience.
• Background: Associated with the company since 2010; B.Com; ICAI Associate.
• Relationship: No relationship with any director.
• Not debarred from holding director office.
• Approval status: Board approved; shareholder approval required at ensuing General Meeting.

Q1 FY27 results

• Revenue from operations: ₹1,303.86 crore.
• Total income: ₹1,307.17 crore.
• Profit before tax: ₹165.21 crore.
• Net profit: ₹122.20 crore.
• EPS: basic ₹1.70; diluted ₹1.38.
• Company operates in a single segment: wire and rope.
• Limited review conducted; no material misstatement.
• Comparatives for June 30, 2025 regrouped.

Financial results and audit

• Unaudited quarterly results for quarter ended 30 June 2026 approved.
• Limited Review Report on Q1 2026-27 results approved.

Directorship

• Sushil Sharda reappointed as Whole-Time Director for five years, effective 19 May 2027; remuneration fixed.

Requests status

• No dematerialisation/rematerialisation requests were received during the reporting period.

Rating Action

• Long-term bank facilities ₹98 crore reaffirmed; CARE BBB+; Stable outlook.
• Short-term bank facilities ₹25 crore reaffirmed; CARE A3+.

Key Rating Drivers

• Revenue declined ~5% YoY to ₹591 crore in FY26 due to West Asia conflict.
• PBILDT margin steady at 15.5% aided by debottlenecking capex and higher-value mix.
• Gearing 0.09x; TOL/TNW 0.14x as at 31 Mar 2026.
• Plant shutdown in June 2026; MPCB notice; resumed; impact not material.
• Liquidity adequate with PSI subsidy receivable providing cushion; cash accruals ₹45-75 crore p.a.
• Risks: working capital intensity; raw material price volatility; FX exposure; promoter pledge limits.

Financial & Liquidity Profile

• Total operating income FY26: ₹590.5 crore; PBILDT ₹130.8 crore; PAT ₹72.5 crore.
• Interest coverage 11.8x; TD/adjusted PBILDT 0.89x; gross current assets 267 days.
• PSI subsidy expected to support liquidity; WC borrowings utilization ~43%.

Outlook & Sensitivities

• Outlook: Stable; expects sustained profitability and capacity utilisation improvement.
• Upward pressure if revenue scales above ₹800 crore and liquidity remains strong.
• Downgrade risk if revenue falls below ₹500 crore and profitability deteriorates.
• PBILDT interest cover below 5x on a sustained basis would be negative.

Promoter CCPS acquisition and bank loan conversion

• Promoter group Gyanshankar E-Trading LLP bought 3,782 unlisted CCPS from Union Bank of India (UK) Ltd through off-market.
• 38,266 unlisted CCPS were allotted to a consortium of banks for loan conversion under the FY2020-21 resolution plan.
• Acquisition does not change the company’s total paid-up capital at this stage.

Audited results approved

• Board approved audited financial results for quarter and year ended 31 March 2026.
• Results covered standalone financial statements and were accompanied by statutory auditor's report.
• Auditor issued an unmodified opinion on the audited results.

Dividend recommendation

• Board recommended final dividend on 38,266 unlisted 0.01% CCPS for FY2025-26.
• Dividend is subject to shareholder approval at the ensuing AGM.

Auditor appointments

• M/s. PKF Sridhar & appointed as cost auditors for FY2026-27.
• M/s. Borkar & Muzumdar appointed as statutory auditors for five years from FY2026-27 to FY2030-31, subject to shareholder approval.

Other disclosures

• Company disclosed it is not a large corporate under SEBI borrowing framework.
• Board noted the new labour codes and said incremental impact was assessed and reflected in employee benefit expense.