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.

In a significant corporate restructuring move, Welspun Steel Limited has transferred a substantial stake in Welspun Specialty Solutions Limited to Welspun Corp Limited. This transfer, executed through an inter-se arrangement, marks a notable shift in the ownership structure of Welspun Specialty Solutions.

Key Details of the Transfer

• Welspun Steel Limited transferred 26,51,90,034 equity shares of Welspun Specialty Solutions Limited.
• The transferred shares represent a 50.03% stake in Welspun Specialty Solutions.
• The transaction was carried out as part of a scheme of arrangement.
• The scheme received approval from the National Company Law Tribunal, Ahmedabad Bench on March 16, 2022.

Impact on Shareholding

The transfer has resulted in a significant change in the shareholding pattern of Welspun Specialty Solutions:

Demerger Details

The transfer is part of a larger demerger scheme that involves:

• The transfer of Welspun Steel's steel manufacturing business.
• Inclusion of specialty steel and thermo treatment bars manufacturing operations.
• Transfer of holdings in subsidiary companies.

Corporate Control

It's important to note that despite this significant transfer, the overall control structure remains unchanged:

• Both Welspun Steel and Welspun Corp are controlled by promoter Balkrishan Goenka.
• Goenka holds more than 50% equity in both entities.

This inter-se transfer, while altering the direct ownership of Welspun Specialty Solutions, maintains the overarching control under the same promoter group. The move is likely aimed at streamlining operations and potentially unlocking value within the Welspun group of companies.

Investors and market watchers will be keen to observe how this restructuring impacts the operational efficiencies and market positioning of the involved entities in the coming months.