Welspun Enterprises reports steady profit margins in Q1 despite softening revenue, driven by strategic asset sales and ongoing project momentum, with robust order book and growth outlook.
Welspun Enterprises said its first-quarter profit held up even as revenue softened, helped by steady margins and a planned exit from one road asset. The infrastructure company reported revenue of ₹774 crore for the quarter ended June 30, while EBITDA margin came in at 22.9%, roughly in line with the previous year and above its guidance, according to the earnings call summary published by GuruFocus.
Management blamed the weaker top line on a mix of temporary setbacks, including supply-chain disruption linked to geopolitical tensions, a construction halt in Mumbai and labour migration tied to elections. Reported profit after tax was ₹56 crore, weighed down by a ₹34 crore loss from discontinued operations in the Mithi project, which the company described as non-recurring.
Even so, the business pointed to a strong pipeline. Welspun said it has signed a definitive agreement to sell its entire stake in the Aunta-Simaria HAM project at an enterprise value of about ₹1,000 crore, a deal expected to close in the second quarter of FY27 and cut debt by around ₹800 crore. The company also said its consolidated order book stood at more than ₹18,700 crore as of June 30 and that it still expects to add ₹8,000 crore to ₹10,000 crore of new orders in FY27, though some inflows now look more likely in the second half than the first.
Several projects are moving forward after earlier delays. Welspun said the Dharavi-Ghatkopar tunnel scheme has cleared all approvals, including High Court clearance on June 22, and shaft excavation has already begun. The Pune-Shirur road project has reached sub-concession stage, with the appointed date expected in the third quarter of FY27 and about ₹500 crore in revenue contribution forecast for this financial year. In water, the UP Jal Jeevan Mission work is said to be more than 80% complete, while the Vadodara GRP-lined trunk drain is close to finishing ahead of schedule. Management also said it remains confident of 15% to 20% annualised growth, with a target nearer 15% for FY27, backed by a net cash position, credit ratings of CRISIL AA- and ICRA AA and a balance sheet that remains lightly leveraged.
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