Welspun Enterp

Welspun Enterprises delivered a strong Q4 FY26, with consolidated revenue growing 14% YoY to INR1,199 crores and EBITDA increasing 31% YoY to INR272 crores, resulting in a 22% EBITDA margin. For the full year FY26, the company achieved its revenue guidance of INR3,600 crores with INR3,615 crores, and surpassed its EBITDA margin guidance of 18-20% by achieving 23%, driven by disciplined execution and operational efficiency. Consolidated PAT for FY26 grew 11% YoY to INR393 crores.

The company significantly expanded its order book in FY26 by adding over INR10,000 crores, including the major Pune Shirur Elevated Road project valued at approximately INR7,300 crores and the Panjarpur water treatment project. This brings the total consolidated order book to approximately INR20,000 crores as of March 31, 2026, providing strong multi-year revenue visibility. The water business segment alone accounts for around INR14,000 crores of this order book, including O&M contracts.

Welspun Enterprises continues to pursue an asset-light strategy, with the Aunta-Simaria project in advanced stages of monetization, targeted for H1 FY27 after receiving its first annuity payment. Similar monetization plans are expected for the SNRP/Sattanathapuram-Nagapattinam project in FY28. The company maintains a strong balance sheet with INR1,728 crores in consolidated cash and a low net debt of INR43 crores, supported by an enabling approval for INR1,000 crores preferential warrants to fund future growth opportunities, though no immediate fundraise is planned.

Welspun Michigan Engineers Limited (WMEL) demonstrated robust performance, with its FY26 revenue growing 31% YoY to INR874 crores and maintaining a resilient 21% EBITDA margin. WMEL is targeting a revenue growth of 20% for FY27 and a CAGR of over 25% over the next three years, focusing on key segments like tunnels, rehabilitation, and pumping projects. The water business order book, largely managed by WMEL, stands at approximately INR14,000 crores.

The company is actively implementing digital transformation initiatives across its transportation, water, and tunneling verticals. Key initiatives include the adoption of 3D, 4D, 5D BIM for major projects like Dharavi sewage and Bhandup Water Treatment, and the development of AI-driven tools for quality management, safety monitoring, and TBM operations. These efforts are aimed at improving execution efficiencies, strengthening governance, and building scalable operational capabilities.

Management acknowledged potential near-term cost and execution challenges arising from geopolitical situations and global supply chain disruptions. However, they expressed confidence in their resilient business model, government support (e.g., MoRTH guidelines for bitumen costs), and their 18% plus EBITDA margin guidance for FY27, which already factors in these potential impacts. For FY27, the company is targeting 15-20% consolidated revenue growth and INR8,000-10,000 crores in new order inflows.

The Pune-Shirur Elevated Road project, a DBFOT model with a total project cost of approximately INR7,300 crores, has a concession period of 29 years, including 4 years of construction. Financial closure is anticipated by October/November 2026, with real execution expected to commence thereafter. The project is projected to contribute INR500-600 crores to the company's revenue in FY27, with minimal land acquisition required as 70% of the project involves an elevated structure on existing road median.