Welspun Corp (532144) Q3 25/26 earnings summary

Executive summary

• Achieved record-high consolidated global order book of INR 23,600 crore, providing strong long-term visibility across geographies, especially in the U.S. and Saudi Arabia.

• Q3FY26 saw consolidated revenue of ₹4,532.48 crore, up from ₹3,613.51 crore year-over-year, and record-high quarterly EBITDA of INR 645 crore, with consistent growth and improved margins.

• PAT for Q3FY26 was INR 453 crore, significantly higher than last year when adjusted for one-time gains, and total comprehensive income reached ₹508.78 crore.

• Maintained leadership in large diameter line pipes globally and expanded presence in ductile iron pipes and stainless steel segments.

• Sustainability performance improved, ranking 5th globally and 2nd in India among steel companies in the DJSI Index.

Financial highlights

• Q3FY26 EBITDA: INR 645 crore, highest ever, with margin improvement to 15.77% and a one-time cost of INR 25 crore due to new labor code provisions.

• PAT: INR 453 crore for Q3FY26; prior year included a one-time gain of INR 378 crore from EPIC share sale.

• Total income for Q3FY26 rose 25% year-over-year to INR 4,532 crore.

• Net cash position of INR 132 crore maintained after CapEx of INR 1,700 crore over nine months; net debt reduced to -INR 1,049 crore in 9MFY26.

• Annualized ROCE improved to 24.4% for 9MFY26.

Outlook and guidance

• Confident of exceeding FY26 EBITDA guidance; Q4 call will provide next year’s guidance.

• Strong business visibility for next 3-5 years, especially in the US and KSA markets, with bullish outlook driven by LNG, data centers, and energy transition projects.

• Saudi market buoyed by large-scale infrastructure and pipeline projects, with local capacity expansion and anti-dumping measures supporting margins.

• Indian domestic market expected to recover in water and oil & gas sectors due to increased government spending and new projects.

• DI pipe demand to remain strong, supported by government programs and export opportunities.