Welspun Enterprises Ltd. Q2 PAT rises 201% on road-sale gain

Welspun Enterprises Ltd. (WEL) reported Q2FY27 consolidated profit after tax, or PAT, of Rs 296 crore, up 201% year on year, after completing the sale of a 51% stake in the Mukarba Chowk-Panipat Road Project that generated a Rs 194 crore capital gain; excluding the gain, quarterly EBITDA was Rs 231 crore and margin was 26.2%.

What drove WEL’s Q2FY27 PAT increase?

WEL’s Q2FY27 PAT increased to Rs 296 crore from Rs 98 crore in Q2FY26, while revenue from operations rose 32% to Rs 1,035 crore from Rs 784 crore. Total income, which includes other income, increased 34% to Rs 1,076 crore from Rs 803 crore in the prior-year quarter.

Reported earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 122% to Rs 425 crore from Rs 192 crore, compared with the 32% increase in revenue. Profit before tax rose 179% to Rs 351 crore from Rs 126 crore, while tax expense increased to Rs 52 crore from Rs 30 crore. Loss from discontinued operations was Rs 3 crore in Q2FY27, compared with a Rs 3 crore profit a year earlier.

WEL’s reported EBITDA margin expanded to 39.5% from 23.9%, an increase of 1,564 basis points, where one basis point is one-hundredth of a percentage point. PAT margin increased to 27.5% from 12.2%, up 1,527 basis points. These reported measures include the road-project divestment gain disclosed for Q2FY27.

How did the Mukarba Chowk-Panipat sale affect Q2FY27 results?

The completed sale of WEL’s 51% stake in the Mukarba Chowk-Panipat Road Project generated a Rs 194 crore capital gain in Q2FY27. WEL said this gain was included in revenue from operations and EBITDA margin, making it a material contributor to the reported quarterly outcome.

On the exclusion basis provided by WEL, Q2FY27 revenue from operations was Rs 841 crore rather than Rs 1,035 crore, while EBITDA was Rs 231 crore rather than Rs 425 crore. The company calculated EBITDA margin excluding the gain at 26.2%, compared with the reported 39.5% margin including it.

The 26.2% exclusion-basis margin was 230 basis points above Q2FY26’s reported margin of 23.9%, although WEL did not provide a Q2FY26 adjusted margin. WEL also did not disclose PAT excluding the Rs 194 crore capital gain, so the release does not support a company-stated adjusted quarterly PAT comparison.

How did WEL perform in H1FY27?

WEL reported H1FY27 revenue from operations of Rs 1,808 crore, up 11% from Rs 1,629 crore in H1FY26, while EBITDA rose 53% to Rs 610 crore from Rs 399 crore. PAT increased 77% to Rs 352 crore from Rs 199 crore over the same periods.

The first-half revenue increase was lower than the 32% growth recorded in Q2FY27, but the first-half EBITDA margin expanded to 32.4% from 23.9%, a rise of 852 basis points. PAT margin increased to 18.7% from 11.9%, up 678 basis points, while profit before tax rose 69% to Rs 473 crore from Rs 279 crore.

Loss from discontinued operations widened to Rs 38 crore in H1FY27 from Rs 10 crore in H1FY26. Managing Director Sandeep Garg said the 11% first-half revenue growth was in line with WEL’s stated guidance and that the 32.4% EBITDA margin was above management’s guidance, although the release did not disclose numerical guidance ranges.

What balance-sheet and project updates did WEL disclose?

WEL reported net worth of Rs 3,581 crore, gross debt of Rs 1,882 crore and cash and cash equivalents of Rs 1,432 crore as of September 30, 2026. The company also said CRISIL upgraded its long-term credit rating to AA with a Stable outlook from AA-minus.

WEL disclosed a diversified order book of Rs 18,708 crore across its core transportation, water and wastewater, and tunnelling activities. Welspun Michigan Engineers Limited secured Rs 428 crore of pipeline-rehabilitation orders, which WEL said strengthened its urban infrastructure portfolio.

Adani Welspun Exploration Limited received an order from the Directorate General of Hydrocarbons approving use of Oil and Natural Gas Corporation’s existing facilities to evacuate and process gas from its Mumbai block on a toll basis. Management said the arrangement would reduce risk and capital investment and accelerate progress towards first gas production, but did not disclose a production date or investment amount.

Conclusion

WEL’s Q2FY27 earnings combined revenue growth with a completed infrastructure asset monetisation. The Rs 194 crore Mukarba Chowk-Panipat capital gain contributed to reported EBITDA of Rs 425 crore and PAT of Rs 296 crore, while WEL’s own exclusion calculation showed EBITDA of Rs 231 crore and a 26.2% margin without the gain. In H1FY27, PAT rose 77% to Rs 352 crore as EBITDA increased 53% to Rs 610 crore.

Next, investors can monitor execution against WEL’s Rs 18,708 crore order book, including Rs 428 crore of pipeline-rehabilitation orders secured by Welspun Michigan Engineers Limited. Management also cited its medium-term growth and profitability guidance and the move towards first gas from the Mumbai block, but the release provided neither numerical guidance targets nor a first-gas timetable.