Welspun Specialty Solutions Limited (WSSL) has reported robust financial results for the second quarter of fiscal year 2026, while also announcing an ambitious revenue target for the future. The company, known for its stainless steel products, has set its sights on achieving a revenue of ₹7,000-7,500 crore by FY27, showcasing its confidence in its growth strategy and market potential.

Q2 FY26 Financial Highlights

WSSL's financial performance for the quarter ended September 30, 2025, demonstrates significant year-on-year growth:

The company's revenue from operations surged by 42.80% year-on-year to ₹23,908.00 lakhs in Q2 FY26. More impressively, WSSL's EBITDA more than doubled, reaching ₹1,810.00 lakhs, marking a 117.55% increase compared to the same quarter last year. The company has successfully turned around its bottom line, reporting a net profit of ₹965.00 lakhs in Q2 FY26, compared to a loss of ₹635.00 lakhs in Q2 FY25.

Ambitious Growth Plans

Welspun Specialty Solutions has outlined a clear strategy to achieve its target revenue of ₹7,000-7,500 crore by FY27. The company plans to focus on three key areas:

1. Expansion of Stainless and Alloy Pipe Capacity: WSSL aims to increase its production capabilities to meet growing demand.

2. Export Growth: The company is targeting a 25% Compound Annual Growth Rate (CAGR) in exports, indicating a strong push towards international markets.

3. Margin Maintenance: WSSL plans to maintain its margin guidance at 14-15%, suggesting a focus on operational efficiency alongside growth.

Operational Highlights

The company's Q2 FY26 performance was marked by several positive developments:

• Record Pipe Sales: Quarterly pipes sales volume reached an all-time high following the completion of planned maintenance.
• Steady Bars Performance: Bars sales volume for H1 FY26 increased by 67% compared to H1 FY25.
• Improved Credit Rating: CARE upgraded WSSL's rating for long-term facilities to AA- from A+ and short-term facilities to A1+ from A1, reflecting improved financial health.
• Sustainability Focus: The proportion of renewable electricity used increased from 31% in FY25 to approximately 50% during H1 FY26.
• Expansion Projects: A new bright bar project is under construction, with commissioning scheduled for Q3 FY26.
• Customer Base Expansion: WSSL added 21 new customers during H1 FY26, indicating growing market penetration.

Market Outlook

While WSSL has shown strong performance, the company acknowledges ongoing challenges in the global market, including subdued demand and heightened volatility. However, the management remains optimistic about growth opportunities in key industries such as energy, defense, space, oil & gas, petrochemicals, engineering, and public infrastructure.

The company's focus on domestic manufacturing, aligning with the Indian government's 'Make in India' initiative, is expected to drive demand within the country. This strategic alignment, coupled with WSSL's expansion plans and focus on high-value products, positions the company well for future growth.

As Welspun Specialty Solutions Limited continues to navigate the complex global market landscape, its strong Q2 FY26 results and clear growth strategy provide a solid foundation for achieving its ambitious FY27 revenue target.

Welspun Specialty Solutions Limited (WSSL) has reported a strong financial performance for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

WSSL's Q2 FY26 results showcase a remarkable improvement in the company's financial position:

Revenue Growth and Profitability

The company's revenue from operations surged to ₹239.08 crore in Q2 FY26, marking a substantial 42.8% increase from ₹167.42 crore in the same quarter last year. This growth reflects WSSL's strengthening market position and increased demand for its stainless steel products.

WSSL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled to ₹18.09 crore, up from ₹8.32 crore in Q2 FY25, representing a robust growth of 117.4%. The EBITDA margin expanded significantly to 7.57% from 4.97% in the corresponding quarter, indicating improved operational efficiency.

In a notable turnaround, WSSL reported a net profit of ₹9.65 crore for Q2 FY26, compared to a loss of ₹6.35 crore in the same period last year. This shift to profitability underscores the company's effective cost management and revenue growth strategies.

Half-Yearly Performance

For the first half of FY26, WSSL's performance continued to be strong:

• Revenue from operations reached ₹440.40 crore, up 33.6% from ₹329.52 crore in H1 FY25.
• The company reported a net profit of ₹8.90 crore for H1 FY26, reversing the loss of ₹4.40 crore in H1 FY25.

Balance Sheet and Cash Flow

As of September 30, 2025, WSSL's balance sheet showed:

• Total assets of ₹760.08 crore, up from ₹727.86 crore as of March 31, 2025.
• Equity share capital remained stable at ₹397.56 crore.
• Other equity increased to ₹46.60 crore from ₹36.81 crore at the end of the previous fiscal year.

The company's cash flow from operations for H1 FY26 was negative ₹19.98 crore, primarily due to changes in working capital. However, this was partially offset by cash generated from financing activities.

Conclusion

Welspun Specialty Solutions Limited has delivered a strong set of results for Q2 FY26, marked by significant revenue growth, margin expansion, and a return to profitability. The company's improved financial metrics indicate a positive trajectory, which may be attributed to increased demand for its products and effective cost management strategies. As WSSL continues to build on this momentum, investors and market watchers will likely keep a close eye on its performance in the coming quarters.