Quarterly Earnings Presentation
Welspun Corp Reports Record Q1 FY27 EBITDA, PAT Surges 199%; Order Book Reaches ₹24,750 Crore
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- Welspun Corp Limited reported a robust start to FY27, delivering its highest-ever quarterly EBITDA while maintaining a strong balance sheet and expanding profitability.
- Revenue increased 15% year-on-year to ₹4,081 crore, EBITDA rose 35%, and profit after tax surged 199%, aided by a one-time gain from the partial stake sale in EPIC, Saudi Arabia.
- The company also ended the quarter with a healthy net cash position and a global order book of ₹24,750 crore, providing strong medium- to long-term revenue visibility.
PRICE-SENSITIVE TRIGGER
Event: Welspun Corp released its Q1 FY27 Investor Presentation highlighting quarterly financial performance, operational updates, business outlook, project progress, and FY27 guidance.
Type: Quarterly Earnings Presentation
Impact: Positive
Immediate Effect: The company reported record operating performance, improved margins, robust cash generation, and a large order book while reaffirming confidence in FY27 growth supported by strategic expansions in the USA and Saudi Arabia.
Metrics:
Key Financial Metrics:
- Revenue from Operations: ₹4,081 crore (+15% YoY)
- EBITDA: ₹756 crore (+35% YoY)
- EBITDA Margin: 18.5% (vs 15.8%)
- Profit Before Tax: ₹586 crore (+42% YoY)
- PAT: ₹1,046 crore (+199% YoY)
- PAT (excluding exceptional gain): ₹499 crore (+42% YoY)
- EPS: ₹39.7 (vs ₹13.3)
- Other Income: ₹64 crore (+82% YoY)
- Finance Cost: ₹45 crore (-28% YoY)
Highlight:
- Welspun Corp recorded its highest-ever quarterly EBITDA of ₹756 crore while maintaining an EBITDA margin of 18.5%. Excluding the exceptional gain from the EPIC stake sale, PAT still increased 42% year-on-year.
What Happened ?
Welspun Corp delivered a strong first quarter of FY27 driven by healthy execution across its line pipe, ductile iron pipe and building materials businesses. Higher operating efficiency, improved margins and disciplined capital allocation supported record EBITDA and strong profitability.
The company also strengthened its financial position by increasing its net cash balance, maintaining return on capital employed above 23%, and expanding its global order book, providing healthy earnings visibility over the medium term.
key details
Operational Performance:
- Line pipe sales increased to 193 KMT from 182 KMT.
- Ductile iron pipe sales rose to 69 KMT from 65 KMT.
- TMT rebar volumes increased to 47 KMT from 40 KMT.
- Stainless steel bars and pipes volumes stood at 6.3 KMT compared with 8.3 KMT last year.
- Growth across core pipe businesses supported higher operating performance during the quarter.
Business Portfolio:
Welspun Corp continues operating through multiple business verticals including:
- Large-diameter line pipes across India, USA and Saudi Arabia.
- Ductile iron pipes for water transmission and distribution.
- Sintex water storage tanks and plastic piping products.
- Stainless steel products through Welspun Specialty Solutions.
- Solutions serving oil & gas, water infrastructure, power, nuclear, aerospace and industrial sectors.
Balance Sheet Strength:
- Net cash position improved to ₹2,336 crore after capital expenditure of approximately ₹834 crore.
- Annualised ROCE increased to 23.1%, continuing its upward trend.
- Net Debt/EBITDA remains comfortably below the company’s internal threshold of 1x.
- Strong cash generation continues supporting future expansion plans.
Order Book & Growth Visibility:
- Global order book stood at ₹24,750 crore.
- Order book provides strong medium- to long-term revenue visibility.
- The order book includes execution completed up to 30 June 2026 and new orders received until 22 July 2026.
- Management continues focusing on disciplined capital allocation while maintaining strong execution capabilities.
FY27 Guidance:
Management reaffirmed FY27 guidance:
- Revenue Target: ₹20,000 crore.
- EBITDA Target: ₹2,850 crore.
- Q1 FY27 EBITDA achieved: ₹756 crore, representing a strong start toward annual guidance.
- Growth is expected to be supported by strategic capacity additions and healthy execution across major projects.
Business Environment:
Management expects favourable long-term demand across major operating regions.
India
- National Gas Grid expansion.
- City Gas Distribution projects.
- Refinery expansion.
- Irrigation and river-linking projects.
- Jal Jeevan Mission.
United States
- LNG export infrastructure.
- Rising energy demand from AI data centres.
- Growth in natural gas liquids.
- Recovery in oil pipeline investments.
Saudi Arabia
- Large investments by Aramco.
- Desalinated water transportation projects.
- Reconstruction opportunities across the Middle East.
Ductile Iron Pipes
- Saudi Arabia’s Vision 2030 supports significant expansion of water and sewage infrastructure.
- Export opportunities continue across Europe, the Middle East and Africa.
Note
- Welspun’s diversified geographic presence and exposure to both oil & gas and water infrastructure reduce dependence on a single market while supporting long-term order inflows.
Risk Analysis
Summary:
- Despite robust operating momentum, execution of large global infrastructure projects, geopolitical developments, commodity prices and international demand remain important variables for future performance.
Key Risks:
- Geopolitical uncertainty may delay project execution.
- Dependence on timely infrastructure spending across key markets.
- Commodity price volatility could affect margins.
- Delay in commissioning USA and Saudi Arabia expansion projects.
- Slower demand in oil & gas infrastructure could impact future order inflows.
- Exceptional gain recorded during Q1 FY27 is non-recurring.
Worst Case:
- Delays in major international infrastructure projects or weaker energy investments could reduce execution pace and revenue recognition while lowering margin expansion.
Risk Level: Medium
Company Commentary
- Management reported the highest-ever quarterly EBITDA in the company’s history.
- Balance sheet strengthened further with higher net cash and ROCE exceeding 23%.
- Strategic expansion projects in the USA and Saudi Arabia remain on track for commissioning during FY27.
- The company continues focusing on disciplined capital allocation, innovation and customer relationships.
- ESG initiatives remain integral to long-term sustainable growth.
- A robust order book provides confidence for medium- to long-term business visibility.
Official Exchange Filing: Welspun Corp Limited
