Welspun Corp (532144) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 756 crore, up 35% year-over-year, with ROCE above 20% annualized and a net cash position of INR 2,336 crore.

• Strategic expansions and CapEx projects in the USA and Saudi Arabia are progressing, reinforcing global leadership and expected to be fully operational by FY 2028.

• Order book stands at INR 25,750 crore (~$2.7 billion), the highest ever, providing strong growth visibility.

• U.S. and Saudi markets show robust demand, while Indian domestic demand remains muted, prompting a strategic shift toward exports and pig iron.

• Approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.

Financial highlights

• Q1FY27 revenue from operations rose 15% year-over-year to INR 4,081 crore.

• EBITDA increased 35% year-over-year to INR 756 crore, with margin up 270 bps to 18.5%.

• PAT surged 199% year-over-year to INR 1,046 crore, including a one-time gain of INR 548 crore from a partial stake sale in EPIC (KSA).

• Net cash position improved to INR 2,336 crore as of Q1FY27 after capex of ~INR 834 crore.

• Operating EBITDA margin rose to 19.73% from 16.21% year-over-year.

Outlook and guidance

• FY27 revenue guidance set at INR 20,000 crore, with EBITDA guidance at INR 2,850 crore.

• No change to full-year guidance despite strong performance; management maintains conservative forecasts due to project-based business and geopolitical uncertainties.

• Strong demand visibility in the U.S. through FY 2028, with early discussions for FY 2029 projects underway.

• Saudi and U.S. CapEx projects expected to be fully operational by year-end, contributing to FY 2028 earnings.

• Indian domestic demand expected to remain muted due to funding constraints and overcapacity.