Welspun Enterprises Ltd
(BOM:532553)
₹
561.6
-4.25 (-0.75%)
Market Cap: 76.17 Bil
Enterprise Value: 82.21 Bil
PE Ratio: 25.54
PB Ratio: 2.50
GF Score: 85/100 
Q1 2027 Welspun Enterprises Limited Earnings Call Transcript
Aug 05, 2026 / 08:30AM GMT
Release Date Price:
₹584.75
(-3.51%)
Key Points
Positve
- Welspun Enterprises Ltd (BOM:532553) signed a definitive agreement to divest its entire stake in the Aunta-Simaria HAM project at an enterprise value of approximately INR1,000 crore, expected to complete in Q2 FY27 and reduce around INR800 crore of debt.
- EBITDA margin remained resilient at 22.9% in Q1 FY27, in line with FY26's 22.8% and well above the 18%+ guidance, reflecting strong execution and cost discipline.
- The Dharavi-Ghatkopar Tunnel project received all requisite approvals by end of June, including High Court clearance, with shaft excavation already at 10 meters, removing a key execution bottleneck.
- The sub-concession agreement for the Pune-Shirur road project was executed, with construction expected to accelerate after financial closure and Appointed Date in Q3 FY27, contributing around INR500 crore revenue this fiscal year.
- Consolidated order book stood at over INR18,700 crore as of June 30, 2026, providing healthy revenue visibility over the next few years, with a target to add INR8,000-10,000 crore of new orders in FY27.
- The balance sheet remains strong with cash and cash equivalents of INR1,792 crore and net debt of only INR109 crore, supported by CRISIL AA- and ICRA AA- credit ratings.
- The UP Jal Jeevan Mission projects achieved over 80% physical progress, with O&M activities commencing on several completed schemes, transitioning to stable annuity revenue streams.
- The Vadodara GRP-lined mega trunk drain project is nearing completion almost a year ahead of schedule, demonstrating execution efficiency.
- Management expressed confidence in achieving 15-20% annualized growth, with a target of closer to 15% for FY27, driven by a strong order book and clearances.
- Positive developments in the oil and gas segment, including access to ONGC's platform for gas evacuation and submission of a revised FDP for MB-OSN-2005/2, expected approval in 4-6 weeks.
Negative
- Q1 FY27 revenue was soft at INR774 crore, impacted by supply chain disruptions from geopolitical developments, temporary construction stoppage in Mumbai, and labor migration due to elections.
- Reported PAT was INR56 crore, dragged down by a INR34 crore loss from discontinued operations related to the Mithi project, which is non-recurring but affected quarterly profitability.
- The order book declined in Q1, with management acknowledging that new order inflows expected in H1 may now slip to H2 FY27, impacting near-term revenue visibility.
- Execution on the Bhandup 2,000 MLD Water Treatment Plant was slower than envisaged due to a temporary stoppage of excavation debris transportation caused by severe AQI pollution in Mumbai.
- WMEL's Q1 revenue moderated to INR179 crore with an EBITDA margin of 21.3%, partly due to delays in release of orders for certain projects, deferring execution and revenue recognition.
- The company faces ongoing external uncertainties, including geopolitical developments and commodity availability, which could influence execution timelines and growth rates.
- The Pune-Shirur project is still awaiting the Appointed Date, with construction activity expected to accelerate only towards the end of the financial year, limiting near-term revenue contribution.
- Management was unable to provide specific FY28 revenue guidance for the Pune-Shirur project, indicating uncertainty in long-term projections.
- SmartOps revenue is expected to range between INR50-100 crore, but management refrained from giving firm guidance, reflecting the cautious and slow progress in this segment.
- The oil and gas segment remains in a development phase, with production expected only about two years after FDP approval, and the company has not yet decided whether to exit or continue operating the asset.
Operator
Ladies and gentlemen, good day and welcome to Welspun Enterprises Limited Q1 FY27 Earnings Conference Call hosted by 360 ONE Capital Markets.
[Operator Instructions]
I now hand the conference over to Mr. Shailesh Raja. Thank you, and over to you, sir.
Shailesh Raja
Welspun Enterprises Limited - Analyst
Yeah. Good afternoon, everyone, and thank you for joining Welspun Enterprises Limited 1Q FY27 Earnings Conference Call. We thank the Welspun Enterprises team for giving 360 ONE Capital the opportunity to host this interaction today.Without taking much time, I hand over the call to Mr. Harsh to introduce the management, following which we will begin the Q&A session. Yeah. Over to you, Harsh.
Hardik Dhebar
Welspun Energy Orissa Pvt Ltd - Director
Thank you, Salish, and good afternoon. On behalf of Welspun Enterprises, I welcome you all to the Q1 earnings call. Alongside, I have the leadership, leadership team of Welspun Enterprises, led by Mr. Sandeep Garg, Managing Director of Welspun
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