Welspun Enterprises Submits Monitoring Agency Report for Q3 FY26 Preferential Issue Proceeds

3 min read Updated on 04 Feb 2026, 06:48 PM

Reviewed by

Jubin VScanX News Team

Overview

Welspun Enterprises Limited submitted its Q3 FY26 monitoring agency report for preferential issue proceeds of Rs 1,000.00 crore, prepared by CRISIL Ratings Limited. The report shows no utilization during the quarter, with Rs 250.00 crore received and invested in mutual funds generating Rs 1.09 crore earnings, while Rs 750.00 crore remains pending from warrant holders who have 18 months to convert warrants into equity shares.

*this image is generated using AI for illustrative purposes only.

Welspun Enterprises Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations regarding the utilization of proceeds from its preferential issue of convertible warrants. The report, prepared by CRISIL Ratings Limited as the monitoring agency, was considered and approved by the company's Audit Committee and Board of Directors at their respective meetings held on February 04, 2026.

Issue Details and Current Status

The preferential issue comprises convertible warrants with a total value of Rs 1,000.00 crore. During the issue period from November 26, 2025 to December 01, 2025, the company received 25% of the warrant issue price, amounting to Rs 250.00 crore. The remaining Rs 750.00 crore is yet to be received from warrant holders, who retain the option to convert their warrants into equity shares within 18 months from the date of allotment.

Parameter:	Details
Total Issue Size:	Rs 1,000.00 crore
Amount Received:	Rs 250.00 crore
Amount Pending:	Rs 750.00 crore
Issue Period:	November 26 - December 01, 2025
Conversion Window:	18 months from allotment

Utilization of Proceeds

The monitoring agency report indicates no utilization of issue proceeds during the quarter ended December 31, 2025. The funds are earmarked for two primary objectives: Rs 750.00 crore for infusion into the construction of a 6-lane partially elevated highway corridor from Pune to Shirur (NH-753F) in Maharashtra under DFBOT (Toll) mode with a 29-year concession period, and Rs 250.00 crore for general corporate purposes.

Object:	Allocated Amount (Rs crore)	Utilized Amount (Rs crore)	Unutilized Amount (Rs crore)
Highway Construction Project:	750.00	Nil	750.00
General Corporate Purpose:	250.00	Nil	250.00
Total:	1,000.00	Nil	1,000.00

Deployment of Unutilized Funds

The company has invested the received proceeds of Rs 250.00 crore in various mutual funds to optimize returns while maintaining liquidity. These investments generated total earnings of Rs 1.09 crore during the quarter, bringing the total value to Rs 251.09 crore as of December 31, 2025.

Mutual Fund:	Investment (Rs crore)	Earnings (Rs crore)	Market Value (Rs crore)
Invesco India Liquid Fund:	50.00	0.21	50.21
Nippon India Ultra Short Duration Fund:	50.00	0.22	50.22
Union Corporate Bond Fund:	50.00	0.22	50.22
JioBlackRock Overnight Fund:	50.00	0.23	50.23
DSP Overnight Fund:	50.00	0.21	50.21
Total:	250.00	1.09	251.09

Regulatory Compliance and Monitoring

The monitoring agency report confirms no deviations from the disclosed objects of the issue and no material changes in the means of finance. CRISIL Ratings Limited, serving as the monitoring agency under the agreement dated November 26, 2025, has certified that the unutilized proceeds are appropriately deployed in mutual funds as disclosed in the notice to shareholders. The report also confirms that the amount allocated for general corporate purposes does not exceed the permissible limit of 25% of the total issue proceeds.

Corporate Governance

The report was signed by Shounak Chakravarty, Director, Ratings (LCG) at CRISIL Ratings Limited, and submitted to the company on February 04, 2026. Nidhi Tanna, Company Secretary (ACS-30465), facilitated the submission to BSE Limited and National Stock Exchange of India Limited on behalf of Welspun Enterprises Limited. The report is also available on the company's website at www.welspunenterprises.com for stakeholder access and transparency.

Historical Stock Returns for Welspun Enterprises

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.28%	+2.39%	-7.00%	-1.97%	-21.15%	+432.87%

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Welspun Enterprises Q3FY26 Results: Net Profit Declines 60% Despite Margin Improvement

2 min read Updated on 04 Feb 2026, 04:18 PM

Reviewed by

Shriram SScanX News Team

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Overview

Welspun Enterprises announced Q3FY26 results showing consolidated net profit decline of 60% to ₹31 crores from ₹77 crores YoY, impacted by exceptional loss of ₹49 crores related to Kutch oil block write-off. Despite revenue pressures from extended monsoons and project delays, the company demonstrated operational efficiency with EBITDA margin improvement to 21.5% and nine-month EBITDA growth of 10% to ₹573 crores.

*this image is generated using AI for illustrative purposes only.

Welspun Enterprises has announced its Q3FY26 financial results, reporting a consolidated net profit of ₹31 crores compared to ₹77 crores in the corresponding quarter of the previous year, representing a 60% year-on-year decline. The infrastructure and road development company's latest quarterly performance reflects mixed results with revenue pressures offset by operational efficiency improvements.

Key Financial Performance

The company's Q3FY26 consolidated financial metrics demonstrate varied performance across different parameters, with some indicators showing improvement despite overall revenue decline.

Financial Metric:	Q3FY26	Q3FY25	Change
Revenue from Operations:	₹787 crores	₹896 crores	-12%
Total Income:	₹806 crores	₹919 crores	-12%
EBITDA:	₹174 crores	₹180 crores	-3%
EBITDA Margin:	21.5%	19.6%	+192 bps
Net Profit:	₹31 crores	₹77 crores	-60%
PAT Margin:	3.8%	8.4%	Decline

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Welspun Enterprises demonstrated stronger operational performance with consolidated EBITDA reaching ₹573 crores, marking a 10% year-on-year growth. The EBITDA margin improved significantly to 23.1% from 19.2% in the corresponding period of the previous year, representing an improvement of 386 basis points.

Nine-Month Metrics:	9MFY26	9MFY25	Change
Revenue:	₹2,416 crores	₹2,641 crores	-9%
EBITDA:	₹573 crores	₹523 crores	+10%
EBITDA Margin:	23.1%	19.2%	+386 bps
Net Profit:	₹230 crores	₹248 crores	-7%

Exceptional Items Impact

The company recorded an exceptional loss of ₹49 crores during Q3FY26, which significantly impacted the overall financial outcome. This exceptional item represents Welspun Enterprises' 35% share of the write-off in AWEL relating to the Kutch oil block, where an associate company had to relinquish its 25% proportionate interest.

Management Outlook and Strategic Initiatives

Managing Director Sandeep Garg commented on the results, attributing revenue challenges to extended monsoons, delays in statutory clearances for the Dharavi-Ghatkopar Tunnel, and postponement in the award of the Pune-Shirur project. The company now expects consolidated revenues of ₹3,600-3,700 crores for FY26 while remaining on track to achieve full-year EBITDA targets.

Financial Position and Credit Rating

Welspun Enterprises maintains a strong balance sheet with consolidated cash and cash equivalents of approximately ₹1,400 crores. CRISIL has revised the company's rating outlook from Stable to Positive while reaffirming the long-term rating at CRISIL AA- and short-term rating at CRISIL A1+. The company also received Great Place to Work Certification for the second consecutive year.

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