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    Welspun Enterprises Limited

    WELENT
    Construction·12 Nov 2025
    Management Summary

    Welspun Enterprises reported a strong Q2 FY26, with consolidated EBITDA growing 28% YoY and margins expanding by 600 bps, driven by operational efficiency and project completion. The company secured significant new orders, including a 910 MLD water treatment plant and an L1 position for a large BOT road project, bolstering its consolidated order book to over INR15,615 crores. While facing some delays in NHAI order awards and pending receivables from the UP JJM project, management remains confident in achieving its FY26 revenue target and leveraging its strong balance sheet for future growth opportunities, including a planned INR1,000 crore capital raise.

    Highlights

    5

    • Consolidated EBITDA grew 28% YoY to INR192 crores in Q2 FY26, compared to INR150 crores in Q2 FY25.

    • Consolidated EBITDA margin expanded 600 bps to 24% in Q2 FY26, up from 18% in Q2 FY25.

    • Secured a new 910 MLD water treatment plant order from BMC with an EPC value of INR1,685 crores and O&M component of INR980 crores.

    • Emerged L1 bidder for the Pune-Shirur Elevated Highway BOT project, with a total project cost of INR7,300 crores, expected to add >INR5,000 crores to the order book.

    • Consolidated cash reserves of INR1,043 crores and net worth of INR2,870 crores provide significant financial flexibility.

    Concerns

    3

    • Transport segment revenue declined by 30% in H1 FY26 due to the completion of major projects.

    • A slowdown in order awarding from NHAI was noted, though management expects targets to remain strong.

    • Receivables from the UP Jal Jeevan Mission project, estimated between INR200-220 crores, are pending resolution.

    What Changed2

    vs Q3 FY26

    Guidance items7 → 11 (+4)Risks discussed5 → 3 (-2)

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Total Income₹803 Cr
    2. 02Consolidated EBITDA₹192 Cr+28.0%YoY
    3. 03Consolidated EBITDA Margin24%
    4. 04Consolidated PAT₹99 Cr+63%YoY
    5. 05Consolidated Net Worth₹2,870 Cr

    Segment breakdown

    • Transport (H1 FY26)₹674 Cr37.5%
    • Water (H1 FY26)₹522 Cr29.0%
    • Tunneling and Rehabilitation (H1 FY26)₹433 Cr24.1%
    • Welspun Michigan (Q2 FY26)₹169 Cr9.4%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 15,615 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 1,685 crores

    Composition

    Mix3 segments
    • Welspun Michigan - Tunneling60.0%
    • Welspun Michigan - Pumping Stations22.0%
    • Welspun Michigan - Rehabilitation14.0%

    Share of order book by segment · partial disclosure (96.0% of book)

    Pipeline

    L1 awaiting loa

    L1 for Pune-Shirur Elevated Highway corridor, a BOT toll project of MSIDC

    "The robust order book provides strong revenue visibility, and the company is on track to achieve its top line target for the year."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Net ₹688 crores

    Liquidity

    Cash ₹1,043 crores

    Consolidated cash reserves provide significant flexibility to pursue growth opportunities. Stand-alone cash and cash equivalent is INR986 crores.

    Guidance & targets

    11
    CategoryTargetPriority
    Revenue
    Consolidated Top Line Target
    INR4,000 crores
    		High
    Profitability
    Overall EBITDA Margin
    around 18%
    		Medium
    Order Inflow
    Pune-Shirur LOA
    received
    		High
    Oil & Gas
    Resolution of Blocks
    resolved
    		Medium
    Receivables
    UP JJM Receivables Resolution
    resolved
    		Medium
    Project Completion
    Dharavi Wastewater Treatment Facility Commissioning
    commissioned
    		High
    Project Completion
    Bhandup Water Treatment Plant Completion
    completed
    		High
    Project Completion
    Sattanathapuram Nagapattinam Road Project Provisional Completion
    achieved
    		High
    Project Milestones
    Dharavi-Ghatkopar Tunnel Clearances
    in place
    		High
    Project Milestones
    Dharavi-Ghatkopar Tunnel Shaft Work
    commence
    		High
    Project Milestones
    Sattanathapuram Nagapattinam Road Project 75% Milestone
    submitted
    		High

    Pune-Shirur LOA receipt

    this quarter (Q3 FY26)
    CurrentL1 bidder, awaiting LOA
    TargetLOA received

    Why it matters

    Receipt of the Letter of Award is a critical prerequisite for project commencement and future revenue contribution from this large BOT project.

    I expect this to happen over the next few weeks at least definitely in this quarter.

    How to verify

    order_book.pipeline

    Risks & concerns

    3
    RiskSeverity

    NHAI order awarding slowdown

    A slowdown in NHAI order awards was noted, but management expects targets to remain strong and more orders to come post policy revisions. — Management acknowledged

    medium

    Pending receivables from UP Jal Jeevan Mission

    INR200-220 crores are pending from the UP JJM project, but management is confident in resolution within a few months due to high-level assurance. — Analyst acknowledged

    medium

    Project delays due to work front availability and local disturbances

    The Varanasi-Aurangabad Road Project experienced delays due to work front availability and local disturbances, but the company is geared up to resolve issues and accelerate work. — Management acknowledged

    low

    Q&A highlights

    7

    “So the question is about margins. Yes, there is an increase across all segments because of operational excellence. There is some increase in the margin because Aunta-Simaria project has completed and it's operational and contributing to the EBITDA margins. Although we foresee at least for the next foreseeable future that these margins, what we are reporting right now may continue. But however, on an overall level, we do not change our guidance, which we have always maintained, it will be around 18% of there.”

    Clarifies the drivers of current high margins (project completion, contingency release) and reiterates the long-term sustainable margin guidance for the company.

    asked by Sarvesh Gupta

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Overview

    Welspun Enterprises reported a robust Q2 FY26, with consolidated total income reaching INR803 crores. Consolidated EBITDA grew by 28% year-on-year to INR192 crores, and the EBITDA margin expanded significantly by 600 basis points to 24%. Net profit also saw substantial growth, increasing by 63% year-on-year to INR99 crores, reflecting strong operational efficiency and prudent project execution across its diversified portfolio.

    02

    Order Book and New Wins

    The company's consolidated order book stands at INR15,615 crores as of Q2 FY26, with an additional pipeline of over INR5,000 crores expected from L1 projects. Key new wins include a 910 MLD water treatment plant from BMC with an EPC value of INR1,685 crores and an O&M component of INR980 crores. Welspun also emerged as the L1 bidder for the Pune-Shirur Elevated Highway BOT project, valued at INR7,300 crores, which is anticipated to significantly boost the order book upon fructification.

    03

    Strategic Capital Raise and Financial Position

    Welspun Enterprises plans to raise INR1,000 crores through a preferential issue of warrants, with promoter participation, to strengthen its balance sheet. This move is strategic, aligning with evolving PPP project evaluation criteria that consider 'adjusted net worth.' The company maintains a strong financial position with consolidated cash reserves of INR1,043 crores and a net worth of INR2,870 crores, providing flexibility for future growth opportunities.

    04

    Water Segment Progress and Outlook

    The water vertical continues to be a key growth driver. The Dharavi 418 MLD wastewater treatment facility is on track for July 2027 commissioning, poised to be Asia's first multi-storey plant. The Bhandup 2,000 MLD WTP is progressing towards an April 2029 completion. Welspun Michigan, a subsidiary, reported 60% YoY revenue growth to INR169 crores in Q2 FY26, with an EBITDA margin of 20.8%, and its order book is 60% tunneling, 22% pumping stations, and 14% rehabilitation.

    05

    Transportation Segment Developments

    The Aunta-Simaria Road project achieved Provisional Commercial Operation Date (PCOD) in May 2025, with monetization efforts expected to close within FY26. While the Varanasi-Aurangabad project faced some delays, the Sattanathapuram Nagapattinam Road project is 74% complete, with the 75% financial milestone expected by December 2025. The Pune-Shirur BOT project, valued at INR7,300 crores, is awaiting its Letter of Award, with significant revenue contribution anticipated in FY27.

    06

    Oil & Gas and Digitalization Initiatives

    Management is actively engaged with ONGC and the government to resolve issues related to the take-off point and costs for its three oil and gas blocks (MB, B9, C37), with a resolution expected within 45 days. The company is also driving digital transformation across operations, including 3D/4D/5D modeling, SAP RISE migration, and enhanced project management dashboards, aiming for improved efficiency and decision-making.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.