Welspun Corp (532144) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 560 crore with margins at 16% and PAT of INR 350 crore in Q1 FY26, with total income of ₹3,587 crore, up 12.8% year-over-year.

• Maintained a robust consolidated order book of INR 19,000 crore, providing strong visibility for 8 quarters in the US and 4+ quarters in India, with significant contributions from line pipes, DI pipes, and stainless steel segments.

• Net cash position of INR 600 crore maintained despite ongoing CapEx; net debt reduced to negative ₹600 crore, with net debt/EBITDA at (0.3).

• Credit rating for long-term facilities upgraded to AA+/Stable, reflecting strong business and financial risk profiles.

• Strong demand outlook across oil & gas, water, and building materials segments in India, US, and Saudi Arabia.

Financial highlights

• EBITDA reached an all-time high of INR 560 crore, with margins improving to 16.21% in Q1 FY26 from 13.1% in Q1 FY25.

• PAT for the quarter was INR 350 crore; annualized ROCE at 24%; EPS increased to ₹13.32.

• Net cash of INR 600 crore, even after significant CapEx; net debt/equity at (0.08).

• CapEx of ₹450 crore spent in Q1FY26; Sintex subsidiary recorded sales of INR 160 crore.

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

Outlook and guidance

• Confident in meeting or exceeding FY26 guidance based on current performance and order book; FY26 revenue guidance at ₹17,500 crore.

• EBITDA guidance for FY26 at ₹2,200 crore; Q1FY26 achieved ₹560 crore.

• ROCE expected to exceed 20% for FY26; annualized Q1FY26 ROCE at 24%.

• CapEx plans are backloaded, with 40-45% expected in FY26 and the remainder in FY27.

• Net debt/EBITDA targeted below 1.0 for FY26.