Welspun Enterprises' profit in June quarter down by 8%

Mumbai, 6 August 2025: Welspun Enterprises Ltd (NSE: WELENT | BSE: 532553  posted a consolidated net profit of ₹101 crore for the quarter ended June 30, 2025 (Q1FY26), marking an 8% year-on-year (YoY) decline.  EBITDA margin in the quarter improved to 23.9%.

Revenue Drops 9% YoY in Q1FY26 But Profitability Holds Strong Due to Cost Discipline

Welspun Enterprises reported a 9% YoY decline in consolidated revenue, falling from ₹930 crore in Q1FY25 to ₹845 crore in Q1FY26. The dip in topline was primarily due to reduced execution volumes. However, the company’s EBITDA rose 8% YoY to ₹208 crore, driven by efficient cost structures and a favourable project mix. The resultant EBITDA margin expanded by 377 basis points YoY to 23.9%, an all-time high for the firm. On a quarter-on-quarter (QoQ) basis, revenue was also lower, underscoring execution seasonality.

Standalone Revenue Falls 19% YoY in Q1FY26, but PAT Margin Improves by 219 Basis Points

The standalone revenue for Q1FY26 stood at ₹604 crore, down 19% YoY from ₹747 crore. Yet, due to cost controls and higher other income, PAT margin rose to 13.6% from 11.5%, reflecting an improvement of 219 basis points YoY. Net profit (PAT) came in slightly lower at ₹87 crore, a marginal 2% dip compared to the previous year.

Consolidated PAT Declines to ₹101 Cr in Q1FY26 as Exceptional Items Remain Nil

Despite the operational resilience, consolidated profit after tax (PAT) decreased 8% YoY, from ₹110 crore to ₹101 crore. This was due to a combination of lower revenue and a decline in other income, which fell 14% YoY. Importantly, there were no exceptional items recorded during the quarter, maintaining a steady profit before tax (PBT) at ₹154 crore, unchanged from Q1FY25.

Standalone EBITDA Margins Expand to 19.5% Even as Absolute EBITDA Dips Slightly

The company posted a 4% decline in standalone EBITDA from ₹129 crore in Q1FY25 to ₹124 crore in Q1FY26. Despite the drop in absolute EBITDA, margins improved significantly by 289 basis points, from 16.6% to 19.5%, showcasing operational efficiencies and better project contribution.

Net Debt Rises to ₹378 Cr in Q1FY26 Due to Capex and Working Capital Requirements

As of 30 June 2025, Welspun Enterprises’ net debt position increased to ₹378 crore, compared to ₹145 crore at the end of March 2025. The rise in debt was attributed to ongoing investments and a short-term working capital requirement. Gross debt stood at ₹1,446 crore, while cash and equivalents declined to ₹1,068 crore.

Strategic Investments Reach ₹1,344 Cr by Q1FY26 Across Roads, Oil & Gas, and Water Projects

Welspun Enterprises has invested ₹1,344 crore as of Q1FY26, distributed across:

• ₹389 crore in HAM (Hybrid Annuity Model) road projects
• ₹104 crore in Road BOT (Build-Operate-Transfer) with an additional ₹137 crore to be infused over the next 12 months
• ₹474 crore in oil & gas ventures
• ₹89 crore in water BOT projects
• ₹237 crore in tunnelling via its subsidiary, Michigan Engineers

These investments are part of the company’s diversification and asset-light strategy, aiming for long-term returns and stable cash flows.

Order Book at ₹13,665 Cr; Management Confident of 15–20% Revenue Growth in FY26

Managing Director Sandeep Garg reiterated the company’s confidence in FY26, driven by a strong ₹13,665 crore order book and multiple milestone completions. He highlighted provisional and final completions for key infrastructure projects such as:

• Aunta–Simaria Road Project (Provisional Completion Certificate received)
• Mukarba Chowk–Panipat Corridor (Final Completion Certificate awarded)

The company expects 15–20% revenue growth in the current fiscal based on the robust execution pipeline and successful project deliveries.

Welspun Enterprises Share Price Declines 1.32% After Q1 Results Amid Market Caution

Following the Q1FY26 results, shares of Welspun Enterprises Ltd (NSE: WELENT) closed at ₹470.00 on 6 August 2025, down 1.32% or ₹6.30 from the previous close. The stock opened at ₹475.30, touched an intraday high of ₹483.30, and a low of ₹457.10. The muted investor reaction reflected the revenue decline and higher net debt, despite margin expansion. The stock remains 18.47x P/E, with a market cap of ₹6,430 crore, and trades well below its 52-week high of ₹655.00.

Welspun Enterprises: A Diversified Infrastructure Player with Strategic Asset Base

Welspun Enterprises Ltd. (NSE: WELENT | BSE: 532553) is a Mumbai-headquartered infrastructure firm operating under Welspun World, with key verticals in transportation, water and wastewater management, and oil & gas. With over 1,000 km of executed road projects and significant investments via its tunnelling arm, Welspun Michigan Engineers, the company is focused on delivering sustainable infrastructure solutions across India’s urban and rural landscapes.

REF: https://nsearchives.nseindia.com/corporate/WELENT_06082025150218_ResultsFinal.pdf

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