Welspun Enterprises Limited has submitted its statement of deviation or variation for the quarter ended December 31, 2025, confirming no deviation in the utilization of proceeds from its convertible warrants issued through preferential allotment. The statement, filed under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was reviewed by the Audit Committee and Board of Directors at their respective meetings held on February 04, 2026.

Issue Details and Fund Raising

The company raised funds through convertible warrants with a total issue size of Rs 1,000.00 crore via preferential issue on October 15, 2025. During the quarter ended December 31, 2025, the company received Rs 250.00 crore, representing 25% of the issue size as subscription amount. The remaining 75% amounting to Rs 750.00 crore will be received upon exercise of conversion option by warrant holders within 18 months from the allotment date of December 01, 2025.

Fund Utilization and Allocation

The deviation statement confirms no utilization of issue proceeds during the quarter ended December 31, 2025. The funds are allocated for two primary objectives: Rs 750.00 crore for infusion into 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.

Regulatory Compliance and Monitoring

CRISIL Ratings Limited serves as the monitoring agency for the convertible warrants issue. The deviation statement indicates no deviation or variation in the use of funds raised, with no changes in terms of contract or objects requiring shareholder approval. Both the Audit Committee and auditors provided no adverse comments on the fund utilization during the quarter.

Corporate Governance and Disclosure

The statement was signed by Nidhi Tanna, Company Secretary (ACS-30465), and submitted to BSE Limited and National Stock Exchange of India Limited on February 04, 2026. The company maintains transparency by hosting all relevant information on its website at www.welspunenterprises.com . The filing ensures compliance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, regarding quarterly reporting requirements for fund utilization.

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.

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.

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.