Welspun Enterprises Limited Q2 EBITDA rises 122% to ₹425 crore

WEL reported Q2FY27 consolidated EBITDA of ₹425 crore, up 122% year on year, while its EBITDA margin reached 39.5% from 23.9%; consolidated net worth was ₹3,581 crore at September 30, 2026, compared with ₹3,261 crore at March 31, 2026. The figures are reported on a consolidated basis.

How did WEL's Q2FY27 earnings change?

WEL's consolidated Q2FY27 earnings increased across revenue, EBITDA and profit after tax. Revenue from operations rose 32% year on year to ₹1,035 crore from ₹784 crore, while total income increased 34% to ₹1,076 crore from ₹803 crore. Earnings before interest, tax, depreciation and amortisation, or EBITDA, climbed by ₹233 crore to ₹425 crore.

WEL's EBITDA margin expanded by 1,564 basis points, or 15.64 percentage points, from 23.9% in Q2FY26 to 39.5% in Q2FY27. Profit before tax increased 179% to ₹351 crore from ₹126 crore. Tax rose 73% to ₹52 crore from ₹30 crore, while profit after tax, or PAT, increased 201% to ₹296 crore from ₹98 crore.

The first-half comparison also showed higher earnings, although the rate of expansion was lower than in the second quarter alone. In H1FY27, revenue from operations was ₹1,808 crore, 11% above ₹1,629 crore in H1FY26. EBITDA rose 53% to ₹610 crore and the margin increased to 32.4% from 23.9%, while PAT was ₹352 crore, up 77% from ₹199 crore.

Why did WEL's consolidated and standalone results differ?

WEL's standalone Q2FY27 EBITDA grew faster than its consolidated EBITDA, rising 240% to ₹395 crore, compared with 122% growth to ₹425 crore on a consolidated basis. Standalone revenue from operations increased 53% to ₹909 crore from ₹593 crore, versus the consolidated revenue increase of 32% to ₹1,035 crore. The standalone EBITDA margin was 41.4%, 1.9 percentage points above the 39.5% consolidated margin.

Standalone PAT increased 310% to ₹300 crore in Q2FY27 from ₹73 crore in Q2FY26. Standalone profit before tax rose 288% to ₹370 crore, and standalone tax increased 215% to ₹70 crore. For H1FY27, standalone EBITDA was ₹494 crore, up 106% year on year, and the standalone margin was 32.2%, compared with 19.2% in H1FY26.

The presentation identifies Welspun Michigan Engineers Ltd, or WMEL, as a 60.09%-owned WEL subsidiary, and its Q2FY27 performance declined. WMEL reported revenue of ₹139 crore, down 18% from ₹169 crore, and EBITDA of ₹25 crore, down 30% from ₹35 crore. Its margin declined by 272 basis points to 18.0% from 21.7%; the presentation does not provide a reconciliation of WMEL's results to the consolidated result.

What changed in WEL's balance sheet by September 2026?

WEL's consolidated net worth increased by ₹320 crore to ₹3,581 crore as of September 30, 2026, from ₹3,261 crore on March 31, 2026. On a standalone basis, net worth increased by ₹329 crore over the same period to ₹3,481 crore from ₹3,152 crore. These are separate reported consolidated and standalone equity measures.

Consolidated gross debt increased by ₹111 crore to ₹1,882 crore at September 30, 2026. Long-term debt was ₹1,838 crore, up from ₹1,725 crore at March 31, 2026, while short-term working-capital loans fell to ₹44 crore from ₹46 crore. Cash and cash equivalents declined by ₹296 crore to ₹1,432 crore, resulting in reported net debt of ₹450 crore versus ₹43 crore six months earlier.

Standalone WEL reported no gross debt in either balance-sheet period. Its cash and cash equivalents were ₹1,288 crore on September 30, 2026, down from ₹1,579 crore on March 31, 2026. The reported standalone net debt/(cash) figures of negative ₹1,288 crore and negative ₹1,579 crore show net cash in both periods.

What projects and operating milestones should WEL investors track?

WEL disclosed several transportation-project milestones, including a divestment process for Aunta-Simaria and completion of the Varanasi-Aurangabad Road Project. The Pune-Shirur Road Project had executed its sub-concession agreement and received debt sanction. The Sattanathapuram-Nagapattinam Road Project was at an advanced stage of completion, while Varanasi-Aurangabad was awaiting expected completion certification.

WMEL had an order book of about ₹2,279 crore as of September 30, 2026, including a DGT order. Tunnelling represented 53% of the order book, pumping 21%, pipeline rehabilitation 19% and other work 7%. WMEL describes its activities as engineering, procurement and construction, or EPC, work in tunnelling, pipeline rehabilitation and pumping stations.

WEL also disclosed development plans at Adani Welspun Exploration Ltd, or AWEL, a 65:35 joint venture between the Adani Group and WEL. AWEL's blocks hold about 1.1 trillion cubic feet, or TCF, of collective gas initially in place, according to the presentation. AWEL expects production to start in FY29, plans evacuation through ONGC's network, and cited a DG' order for the MB block in July 2026.

Conclusion

WEL's H1FY27 results show that the Q2 increase in earnings was accompanied by a 53% increase in consolidated EBITDA to ₹610 crore for the first half and a 77% increase in PAT to ₹352 crore. The comparison between reporting bases also shows standalone EBITDA growth of 240% exceeded consolidated growth of 122%, while WMEL recorded an 18% decline in quarterly revenue and a 30% decline in EBITDA.

The next disclosed developments to watch are completion certification for the Varanasi-Aurangabad Road Project, the ongoing Aunta-Simaria divestment, and the advanced completion stage of Sattanathapuram-Nagapattinam. Longer term, AWEL's stated plan is to begin production in FY29, following its July 2026 MB block order and planned use of ONGC's network for gas evacuation.