Bharat Wire Ropes Rated by CARE Ratings; Long-term and Short-term Bank Facilities Reaffirmed

Bharat Wire Ropes Rated by CARE Ratings; Long-term and Short-term Bank Facilities Reaffirmed​

Bharat Wire Ropes Limited (BWRL) has received a rating reaffirmation for its bank credit facilities from CARE Ratings Limited, reflecting adequate operational and financial performance despite headwinds in the market. The rating agency reaffirmed the status of the company’s long-term and short-term banking arrangements in July 2026.

The details of the reaffirmed facilities are as follows:


The rating reaffirms the company's commitment, noting that BWRL’s adjusted profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin remained steady at 15.5% in FY26, which was aided by debottlenecking capex and improvement towards a high-value product mix.

Financial Performance and Outlook​

The reaffirmation came despite BWRL reporting revenue impact from the West Asia conflict, resulting in a approximately 5% year-on-year decline in revenue to roughly ₹591 crore in FY26. CARE Ratings Limited projects sustained performance for the company, aided by its expanding distribution network and improving capacity utilization. The agency anticipates that BWRL is poised for revenue growth of 15-20% per annum over the next one to two years.

The ratings also factored in the Maharashtra Package Scheme of Incentives (PSI) subsidy through a refund of state GST, which provides liquidity support to the company. Regarding financial stability, BWRL's capital structure remains comfortable. As of March 31, 2026, the total outside liabilities to tangible net worth (TOL/TNW) stood at 0.14x, down from 0.24x in the previous year.

BWRL’s debt coverage metrics were noted as adequate in FY26, with adjusted PBILDT interest coverage and TD/adjusted PBILDT at 7.65x and 0.89x, respectively. The company maintains an established customer base and benefit from the experience of its promoters.

Operational Stability and Risks​

CARE Ratings Limited noted a temporary operational disruption when reviewing the rating. A plant shutdown notice was received on June 10, 2026, from the Maharashtra Pollution Control Board (MPCB) due to lapses in environmental compliance. This led to a shutdown of operations at the Chalisgaon plant for approximately one week. However, the plant resumed full operations on June 18, 2026. The agency stated that this plant shutdown was unlikely to be material given the company's sufficient inventory levels.

Despite these operational events, ratings continue to monitor risks such as uncertain global demand outlook and evolving geopolitical scenarios. Operational weaknesses include the working capital intensive nature of the business. Gross current assets increased to 267 days in FY26 from 243 days in the previous year, driven by holding inventory and providing credit to customers.

BWRL's profitability also remains susceptible to raw material price volatility, as steel prices are a primary input. Furthermore, sales through deemed exports contribute over 70-75% to total revenue, exposing profitability to foreign exchange rate fluctuations. The agency noted that the company’s liquidity profile is adequate, with expected gross cash accruals of ₹45–75 crore per annum (excluding subsidy receipt) against scheduled debt repayment of roughly ₹15 crore per annum.

BHARATWIRE Stock Price Movement​

Bharat Wire Ropes Limited is shedding value, slipping by 1.62% in live trading, currently standing at ₹215.31 as of 11:51 AM today. The equity saw considerable movement during the session, with a total traded volume reaching 167,378 shares.