Welspun Corp (532144) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 560 crore with margins at 16% and PAT at INR 350 crore, maintaining a net cash position of INR 600 crore.

• Consolidated order book stands at INR 19,000 crore, providing strong visibility for future quarters in India and the US.

• Expanded product portfolio with Sintex pipes, targeting a 5% market share of an INR 85,000 crore TAM by FY30, and focus on premium/value-added segments.

• Robust demand outlook across India, US, and Saudi Arabia, with significant investments in new plants and capacity expansions.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, were approved by the Board on July 29, 2025.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹3,551.49 crore, up from ₹3,137.23 crore in Q1 FY25.

• EBITDA margin improved to 16.21% in Q1 FY26 from 13.84% in Q1 FY25; EBITDA reached an all-time high of INR 560 crore.

• Net profit for Q1 FY26 stood at ₹349.16 crore, with annualized ROCE at 24%.

• Net cash position of INR 600 crore and net debt/EBITDA at (0.3); net debt/equity at (0.08).

• Capex of ~₹450 crore spent in Q1FY26.

Outlook and guidance

• Confident in meeting or exceeding FY26 guidance, supported by strong order book and diversified business segments.

• FY26 revenue guidance at ₹17,500 crore, with Q1FY26 progress at ₹3,552 crore; EBITDA guidance for FY26 is ₹2,200 crore.

• CapEx of INR 1,300 crore planned over the next 2-3 years, mainly for OPVC business, with 40-45% expected in the current year.

• ROCE guidance above 20%, with Q1FY26 annualized at 24%.

• Net debt/EBITDA expected to remain below 1.0.