Welspun Corp’s Consolidated Profit Up by 40.8% in June Quarter

Mumbai, July 29, 2025 – Welspun Corp Limited (NSE: WELCORP, BSE: 532144) has reported its financial performance for Q1FY26. The consolidated net profit of the company increased by 40.8% (year on year) to ₹349.16 crore. The increase is attributed to stronger operating margins and an improved revenue contribution from steel products.

Welspun Corp Share Price Movement

On Tuesday, the share closed at ₹924.55 (7.13% higher than the previous day’s close). The stock remained in green throughout the day, and the low-high range remained between ₹858 and ₹931. The stock experienced a high trading volume (over 22 lakh shares traded). The company has a P/E ratio of 11.90 compared to the industrial average of 33.09. With today’s rally, the stock has surged close to 29% in the past six months.

Consolidated Financial Performance (₹ in crore)

On a YoY basis, the company delivered a strong performance in Q1FY26. Revenue from operations grew by 13.2% to ₹3,551.49 crore, while total income rose by 12.8%, indicating solid business momentum. Net profit saw a sharp 40.8% increase, climbing to ₹349.16 crore, reflecting improved margins and operational efficiency. EPS also surged by 40.3% to ₹13.32, enhancing returns for shareholders.

Segmental Assessment, Ratios, and Standalone Highlights

In Q1FY26, steel products contributed over 95% of total revenue, generating ₹3,393.06 crore with a segment profit of ₹465.71 crore, up 58% YoY. The company’s net worth rose to ₹8,070.21 crore, and the debt-to-equity ratio improved sharply to 0.13 from 0.36. Interest coverage surged to 18.21x, while inventory days stretched to 207.

On a standalone basis, net profit soared 124.4% YoY to ₹254.83 crore, supported by an exceptional gain of ₹51.72 crore from the partial divestment of Nauyaan Shipyard. However, standalone revenue declined to ₹1,828.35 crore from ₹2,072.51 crore a year ago.

Equity Capital Update

The company issued 8.72 lakh equity shares under its ESOP scheme, increasing paid-up equity from ₹131.17 crore to ₹131.61 crore, comprising 26.32 crore shares of ₹5 each.

Management Commentary

Vipul Mathur, Managing Director & CEO, said:

“We continue to deliver strong operational performance, supported by our core steel business and improving financial discipline. Our focus on long-term value creation remains unwavering as we move ahead with deleveraging and strategic growth plans.”

Strategic Developments

During Q1FY26, the company sold an additional 10% equity stake in Nauyaan Shipyard Pvt Ltd (NSPL) for ₹51.72 crore, booking exceptional income. Post quarter-end, a further 9.9% stake was divested for ₹54.70 crore. As a result, NSPL ceased to be an associate company by the end of Q1FY26, marking a strategic exit from the investment.

Company Overview

Welspun Corp Limited is a leading global manufacturer of large-diameter pipes and infrastructure-related steel products, with operations in India, the US, and the Middle East. The company is listed on NSE and BSE and has a diversified portfolio, including plastic products via its subsidiaries.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/aa057ef8-fcd8-4fd2-9202-df7d42afb1cf.pdf

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