Welspun Enterprises has reaffirmed its commitment to achieving a consolidated revenue target of INR 4,000 crores for the fiscal year 2026 (FY26), despite currently experiencing higher EBITDA margins. The company's management maintains their EBITDA margin guidance of around 18%, even as they are presently surpassing this figure.

Revenue Distribution

The company expects the revenue distribution for FY26 to be back-ended, indicating that higher revenues are anticipated in the latter part of the fiscal year. This strategy suggests a planned ramp-up in operations or project completions towards the end of FY26.

Current Financial Performance

While specific current margin figures were not disclosed, the management's decision to maintain the 18% EBITDA margin guidance despite achieving higher margins at present indicates a conservative approach to future projections. This could be interpreted as a buffer against potential market fluctuations or increased costs in the coming years.

Long-term Strategy

By maintaining their original revenue target and EBITDA margin guidance, Welspun Enterprises demonstrates confidence in their long-term strategy and ability to manage costs effectively. The company's approach suggests a focus on sustainable growth rather than short-term margin expansion.

Investor Implications

For investors, this stance provides a clear benchmark against which to measure the company's performance in the coming years. The maintained guidance, despite current outperformance, may be seen as a prudent approach to managing expectations in a potentially volatile market environment.

Welspun Enterprises' commitment to its FY26 targets, coupled with its current strong performance, positions the company as a potentially stable investment option in the infrastructure sector. However, investors should continue to monitor the company's quarterly results to track its progress towards these goals.

Financial Performance

Welspun Enterprises reported the following results for Q2 FY26:

• Consolidated revenue of ₹784.00 crores, down 4% from ₹815.00 crores in Q2 FY25
• EBITDA of ₹192.00 crores, a substantial increase of 28% year-on-year
• EBITDA margin expansion to 23.9% from 17.9% in the same quarter last year
• Net profit after tax of ₹98.00 crores, up 59% compared to Q2 FY25

Half-Year Results

For H1 FY26, the company's performance was as follows:

• Revenue declined by 7% to ₹1,629.00 crores
• EBITDA grew by 17% to ₹399.00 crores
• EBITDA margin improved to 23.9% from 19.1% in H1 FY25

New Project Win and Order Book

Welspun Enterprises secured a Letter of Award for the construction of a 910 MLD Water Treatment Plant at Panjrapur, Maharashtra, valued at ₹3,145.00 crores. This project has bolstered the company's consolidated order book to ₹15,600.00 crores, with 68% coming from water projects and 24% from transport infrastructure.

Segment-wise Performance

Management Commentary

Sandeep Garg, Managing Director of Welspun Enterprises Limited, stated, "We continue to sustain strong growth momentum, delivering a 17% year-on-year rise in EBITDA and achieving a record-high consolidated EBITDA margin of 23.9% in Q2 FY26. We remain on track to meet our annual revenue guidance of ₹4,000.00 crores at a consolidated level."

He added, "Our recent win of the landmark 910 MLD Water Treatment Plant project at Panjrapur, Maharashtra, marks another milestone in our journey to become a leading player in the water sector. Together with the ongoing 2,000 MLD Bhandup project, we will soon be treating nearly 70% of Mumbai's freshwater requirement."

Future Outlook

The company is witnessing strong traction in BOT (Toll) and HAM projects in transportation, as well as in water projects across river interlinking, treatment, and desalination. Welspun Enterprises is also evaluating expanding opportunities in the tunneling segment for both transport and water projects.

To capitalize on upcoming opportunities, the company is in the process of raising ₹1,000.00 crores through a preferential issue of warrants via private placement, including to the promoter group.

Balance Sheet Highlights

As of September 30, 2025:

Welspun Enterprises continues to focus on its 3G strategy - Growth, Governance, and Green, aiming to deliver sustainable value to all stakeholders.