Welspun Enterprises Limited (WEL) reported a 9% year-on-year decline in consolidated revenue to INR845.00 crores for Q1, primarily due to early monsoon onset and a back-ended revenue guidance. Despite the revenue drop, the company saw an 8% growth in EBITDA to INR208.00 crores, with margins expanding to 23.8% from 20.1% in the same quarter of the previous year.

Key Financial Highlights

• Consolidated revenue: INR845.00 crores (down 9% YoY)
• EBITDA: INR208.00 crores (up 8% YoY)
• EBITDA margin: 23.8% (up from 20.1% in Q1 of previous year)
• Profit before tax: INR154.00 crores (broadly stable)

Segment Performance

The Water segment registered robust 38% year-on-year growth, while the Transport segment declined by 43% due to the completion of two major projects. The Tunneling and Rehabilitation segment grew by 53% year-on-year.

Order Book and Future Outlook

WEL's consolidated order book stands at INR13,665.00 crores, including O&M contracts worth INR4,400.00 crores. The company is actively pursuing new projects worth INR12,000.00 to INR13,000.00 crores, expected to be bid over the next 30 to 45 days.

Sandeep Garg, Managing Director and CEO, stated, "We are confident that over the next eight months, we will book fresh orders in the range of INR10,000.00 crores to INR11,000.00 crores."

Project Updates

• Aunta-Simaria bridge project: Received provisional completion certificate
• Mukarba Chowk-Panipat project: Received completion certificate
• Varanasi Aurangabad road project: Expected completion by this financial year
• SNRP project: 70% physical progress achieved

Strategic Initiatives

Abhishek Chaudhary, CEO, highlighted the company's focus on digitalization, operational efficiency, and ESG principles. Key initiatives include:

• Implementation of S/4HANA and digitized project management system
• Adoption of 3D, 4D, 5D building information systems
• Focus on decarbonization and sustainable practices

Guidance for FY26

Welspun Enterprises maintains its revenue guidance of INR4,000.00-4,100.00 crores for FY26, representing approximately 15% growth over FY25. The company expects a back-ended execution cycle, with momentum accelerating in Q3 and Q4 of FY26.

Welspun Enterprises remains well-positioned for long-term value creation, focusing on high-return segments, disciplined execution, and leveraging its robust order book to drive sustainable growth.

Welspun Enterprises Ltd. (WEL), a key player in India's infrastructure sector, has announced its financial results for the first quarter, showcasing a mixed performance marked by margin expansion despite a revenue decline.

Financial Highlights

• Revenue: The company reported a consolidated revenue of ₹845.00 crore, down 9% from ₹930.00 crore in the same quarter last year.
• EBITDA: Despite the revenue dip, WEL achieved a record-high consolidated EBITDA margin of 23.9%, up from 20.1% in the corresponding quarter. The EBITDA grew by 8% year-on-year to ₹208.00 crore.
• Profit After Tax (PAT): The company's PAT stood at ₹101.00 crore, marking an 8% decrease from ₹110.00 crore in the same period last year.
• Order Book: WEL maintains a robust consolidated order book of ₹13,665.00 crore.

Segment Performance

The company's operations are divided into three main segments:

Strategic Developments

• The Aunta-Simaria Road Project received the Provisional Completion Certificate (PCOD), positioning it for potential monetization by the end of the current financial year.
• The Mukarba Chowk - Panipat (MCP) project was awarded the Completion Certificate, marking another milestone for the company.

Management Commentary

Sandeep Garg, Managing Director of Welspun Enterprises Limited, expressed optimism about the company's performance: "We delivered 8% YoY growth in EBITDA, achieving a record-high consolidated EBITDA margin of 23.9%. This strong performance underscores our continued focus on high-quality project selection and disciplined cost management."

Future Outlook

WEL is actively pursuing growth opportunities, with bids for additional projects worth ₹12,000.00-13,000.00 crore expected over the next 30-45 days. The management remains confident in achieving its full-year revenue growth guidance of 15-20%.

Financial Position

As of June 30, Welspun Enterprises maintains a strong balance sheet:

The company's focus on its '3G strategy' - Growth, Governance, and Green - continues to drive its operations and future plans.

Welspun Enterprises' ability to expand its EBITDA margin in a challenging quarter demonstrates its operational efficiency and strategic project selection. As the company moves forward with a strong order book and pipeline, investors will be watching closely to see if it can maintain this momentum and achieve its growth targets for the fiscal year.