Welspun Enterprises: Building India's Future with Strong Q2 FY26 Performance

Welspun Enterprises Limited, a prominent player in India's infrastructure sector and part of the larger Welspun World conglomerate, has delivered a robust performance in the second quarter of fiscal year 2026. The company's consolidated total income reached INR 803 crore, demonstrating a healthy 28% year-on-year growth in EBITDA, which stood at INR 192 crore. This impressive growth was accompanied by a significant improvement in the EBITDA margin, which expanded to 23.9% for the quarter. The company's strategic focus on high-growth infrastructure verticals, coupled with operational efficiencies, has been instrumental in driving these positive financial outcomes.

The company's segment-wise performance for H1 FY26 highlights its diversified revenue streams. The Transport segment contributed INR 674 crore, accounting for 41% of the total revenue. The Water segment generated INR 522 crore, representing a 32% share, while the Tunneling and Rehabilitation segment added INR 433 crore, making up 27% of the revenue. This balanced portfolio underscores Welspun Enterprises' ability to leverage opportunities across various infrastructure domains. The tunneling and rehabilitation segment, in particular, registered a robust growth of 75% year-on-year for H1 FY26, showcasing strong execution capabilities in specialized areas.

Strategic Wins and Future Growth Trajectory

A significant highlight of the quarter was the receipt of a new order from the Brihanmumbai Municipal Corporation (BMC) for the development of a 910 MLD Water Treatment Plant (WTP) at Panjrapur, Maharashtra. This landmark project, valued at approximately INR 3,145 crore (including O&M), is a testament to Welspun Enterprises' growing leadership in the water sector. Combined with the 2000 MLD Bhandup WTP, these projects will collectively manage nearly 70% of Mumbai's freshwater requirements, marking a crucial step in urban water management. The design-build phase for Panjrapur WTP is scheduled for completion within 48 months, followed by 15 years of operations and maintenance.

In the transportation segment, Welspun Enterprises emerged as the L1 bidder for the Pune-Shirur Elevated Highway corridor, a BOT toll project with an estimated total cost of INR 7,300 crore. This strategic win signals a new phase of growth and diversification for the company. Furthermore, the Aunta-Simaria Road project, featuring India's widest cable-stayed bridge, was successfully completed and inaugurated by the Prime Minister in August 2025, showcasing the company's engineering excellence and execution capabilities. The Varanasi-Aurangabad Road Project is also progressing steadily, with the main carriageway planned for completion by January 2026.

Innovation and Financial Prudence at the Core

Welspun Enterprises is not just focused on project execution but also on technological innovation and digital transformation. The company is driving digitalization across its operations, adopting advanced tools like 3D, 4D, 5D modeling and has successfully migrated to SAP RISE for S/4HANA. These initiatives aim to enhance operational efficiency, optimize supply chain processes, and improve real-time data analytics. The company's 'SmartOps' technology-driven joint venture, dedicated to rejuvenating water bodies, has seen four projects go live across India in just 18 months, with more in the pipeline.

Financially, the company maintains a strong and resilient balance sheet, with consolidated cash reserves of INR 1,043 crore. This robust financial position provides significant flexibility to pursue growth opportunities while maintaining financial discipline. To further strengthen its balance sheet and capitalize on upcoming large-scale Public-Private Partnership (PPP) projects, the company is in the process of raising INR 1,000 crore through a preferential issue of warrants. This move is strategic, aligning with evolving qualification criteria for HAM projects that emphasize adjusted net worth.

Outlook: Sustained Growth and Value Creation

Welspun Enterprises is poised for sustained growth, with management targeting a consolidated top line of INR 4,000 crore for FY26. The company anticipates strong traction in BOT toll and HAM projects in transportation, as well as in the water segment, including river interlinking, water treatment plants, and desalination. Opportunities in the tunneling segment are also expanding, and the company is actively evaluating and bidding for projects that meet its return criteria. Despite minor challenges like project delays in Varanasi-Aurangabad due to external factors and some outstanding receivables in the UP Jal Jeevan Mission project, the company's proactive approach to problem-solving and its commitment to operational excellence remain strong. Welspun Enterprises continues to demonstrate strategic clarity, disciplined execution, and a forward-looking vision to build India's future infrastructure and create long-term value for its stakeholders.