WS Industries Approves Rs 195 Crore Preferential Issue and Reports Q2 FY2026 Results

WS Industries (India) Limited, a leading player in the infrastructure sector, has announced significant corporate actions and its financial results for the second quarter of fiscal year 2026. The company's board of directors approved a substantial preferential issue and reported its quarterly performance in a meeting held on November 14, 2025.

Preferential Issue Approval

The board has given the green light to a preferential issue aimed at raising Rs 195.00 crore, subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM) scheduled for December 12, 2025. The issue comprises:

1.45 crore equity shares at Rs 100.00 each
50 lakh convertible warrants at Rs 100.00 each

This strategic move is designed to bolster the company's financial position and support its growth initiatives.

Key Investors

The preferential issue will be allotted to non-promoter entities, including Foreign Portfolio Investors (FPIs). The major participants include:

Investor	Category	Securities	Value (Rs in Crores)
M7 GLOBAL FUND PCC – CELL DEWCAP FUND	Non-Promoter (FPI)	95,00,000 Equity Shares	95.00
VIKASA INDIA EIF I FUND	Non-Promoter (FPI)	50,00,000 Equity Shares	50.00
VIKASA INDIA EIF I FUND	Non-Promoter (FPI)	50,00,000 Convertible Warrants	50.00

Financial Performance Highlights

For the quarter ended September 30, 2025, WS Industries reported the following consolidated results:

Particulars	Q2 FY2026	Q2 FY2025	YoY Change
Revenue from Operations	Rs 24.05 crore	Rs 62.07 crore	-61.25%
Total Income	Rs 24.69 crore	Rs 62.90 crore	-60.75%
Profit Before Tax	Rs 0.36 crore	Rs 4.63 crore	-92.22%
Profit After Tax	Rs 0.29 crore	Rs 3.86 crore	-92.49%

The company experienced a significant year-over-year decline in both revenue and profitability for the quarter.

Half-Year Performance

For the half-year ended September 30, 2025, the consolidated results showed:

Total Income: Rs 51.50 crore
Profit Before Tax: Rs 2.14 crore
Profit After Tax: Rs 1.65 crore

Other Key Developments

The company appointed India Ratings and Research Pvt. Ltd. as the monitoring agency for the proposed preferential issue.
WS Industries converted 535,120 warrants into fully paid-up equity shares on July 17, 2025.
The board approved a variation in the utilization of funds raised through a previous preferential issue, subject to shareholder approval.

Conclusion

WS Industries continues to navigate a complex business environment, as evidenced by the decline in quarterly performance. The upcoming EGM and the completion of the preferential issue will be crucial events for investors to watch in the coming months.

Investors and stakeholders should note that the financial results are subject to limited review by the company's statutory auditors, and the preferential issue is pending regulatory and shareholder approvals.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.85%	+6.66%	+8.03%	+24.92%	-22.66%	+2,477.88%

WS Industries (formerly W.S. Industries (India) Limited) has issued further revised disclosures for its preferential issue of equity shares and convertible warrants, following clarification from the National Stock Exchange (NSE). The company has now incorporated the Discounted Cash Flow (DCF) method in its valuation report, as directed by the exchange.

Revised Valuation Report

The registered valuer has issued an addendum valuation report dated August 26, 2025, which includes the DCF method under the Income Approach. This addition comes after the company submitted duly signed financial projections on August 25, 2025.

Key Findings

The fair value per equity share has been determined at ₹71.88 using the DCF method.
The minimum price for the preferential issue remains unchanged at ₹80.32, which is the higher value under SEBI ICDR Regulations.

Valuation Methodology

The revised valuation report employs three approaches to estimate the fair value of the company:

Approach	Method	Fair Value Per Share (₹)	Weight	Weighted Average Price (₹)
Market	Weighted Average Market Price	80.32	80%	64.25
Asset	Net Asset Value (NAV)	50.05	10%	5.00
Income	Discounted Cash Flow (DCF)	26.33	10%	2.63
Fair Value Per Equity Share		100%	71.88

Background

WSI Ltd was taken over by new promoters in June 2022 and is currently undergoing an operational revamp in the infrastructure sector. The company had previously excluded the DCF method due to the unavailability of profitability projections. However, the NSE advised that this was not a valid ground for exclusion.

Implications

Despite the inclusion of the DCF method and the resulting fair value of ₹71.88 per share, the minimum price for the preferential issue remains at ₹80.32. This is in line with SEBI regulations, which require the issue price to be the higher of the values determined under various methods.

Company Statement

V. Balamurugan, Company Secretary of WSI Ltd, confirmed that all other contents of the EGM Notice dated June 27, 2025, and previous disclosures remain unchanged and continue to be in force.

The revised valuation report and disclosures demonstrate WSI Ltd's commitment to regulatory compliance and transparency in its preferential issue process. Investors and market participants will likely view this update as a positive step towards more comprehensive financial reporting and valuation practices.