Operating margin expanded to 17% from 14.8% a year earlier and 11.7% in the March quarter, comfortably ahead of Nuvama’s expectation of 11.5%. Other expenses increased 4.7% year-on-year to ₹744.2 crore but declined to 18% of revenue from 20% in the year-ago period.
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Net profit surged 200% year-on-year to ₹1,047.9 crore from ₹349.2 crore, aided by an exceptional gain of ₹548 crore from the sale of shares in an associate, compared with no such gain in the corresponding quarter last year.
The company’s share of profit from joint ventures and associates also rose 48.7% to ₹72.8 crore from ₹49 crore a year ago.
Management said the company began FY27 on a strong footing, delivering its highest-ever quarterly EBITDA while further strengthening its balance sheet. Welspun Corp’s annualised return on capital employed (ROCE) crossed 23% during the quarter, while its net cash position improved despite incurring around ₹834 crore of capital expenditure. The company also said its strategic expansion projects in the US and Saudi Arabia remain on track for commissioning within FY27.
The company said its global order book stood at approximately ₹24,750 crore as of July 22, after accounting for execution through June 30 and fresh orders received during the period. It said the order book provides medium- to long-term revenue visibility across geographies, while maintaining financial guardrails such as ROCE above 20% and net debt-to-EBITDA below one time.
On the business outlook, Welspun Corp expects demand to remain healthy across its key markets. In the US, demand is being driven by LNG export infrastructure, power requirements for AI data centres, natural gas liquids and a revival in oil pipeline projects.
In Saudi Arabia, investments by Aramco, desalinated water transportation projects and reconstruction opportunities in West Asia are expected to support growth, while in India, the company sees opportunities from the National Gas Grid, city gas distribution, refinery expansion, irrigation projects and the Jal Jeevan Mission.
Separately, the board approved the acquisition of an additional 51% stake in Welspun Captive Power Generation Ltd from promoter group company Welspun Living for ₹67.7 crore.
Upon completion, Welspun Corp’s effective holding in the captive power company will increase to 74%, making it a subsidiary. The acquisition is aimed at meeting the company’s power requirements and is expected to be completed by August 31, 2026.
Shares of the company were trading 1% lower at ₹1,596.90 following the results announcement on Friday. The stock has gained 100% this year so far and about 78% over the last 12 months.
