Welspun Corp Q2 FY27 results: net profit up 11.6% to ₹495.09 crore, revenue up 6.2%

How did Welspun Corp perform in Q2 FY27?

Welspun Corp’s consolidated Q2 FY27 revenue was ₹4,644 crore, compared with ₹4,374 crore in Q2 FY26 and ₹4,081 crore in Q1 FY27. EBITDA was ₹726.74 crore, up from ₹591.10 crore a year earlier and ₹692.34 crore in the previous quarter. The EBITDA margin was 15.6%, compared with 13.5% in Q2 FY26 and 17.0% in Q1 FY27. Total income was ₹4,698.55 crore.

Consolidated Q2 FY27 profit before tax was ₹613.67 crore, compared with ₹492.57 crore in Q2 FY26 and ₹586.37 crore in Q1 FY27. Net profit was ₹495.09 crore, against ₹443.51 crore a year earlier and ₹1,047.88 crore in the previous quarter. Profit attributable to owners was ₹498.56 crore, and basic EPS was ₹18.91. On the standalone basis, revenue was ₹1,860.34 crore and PAT was ₹141.83 crore.

What changed in Welspun Corp's costs and profit?

Against Q2 FY26, total expenses increased 4.3% to ₹4,085 crore. Cost of materials rose 5.2% to ₹2,911 crore, other expenses increased 5.2% to ₹811.01 crore and depreciation rose 53.8% to ₹129.49 crore. Employee cost fell 1.5% to ₹304.65 crore, while finance costs declined 22.2% to ₹38.41 crore. There was no exceptional item in either quarter.

Other income increased 56.4% to ₹54.83 crore from ₹35.05 crore, while tax expense rose 10.7% to ₹160.49 crore from ₹144.98 crore. The filing did not provide a specific explanation for the changes in costs, other income or tax. EBITDA increased 22.9% to ₹726.74 crore, and profit before tax rose 24.6% to ₹613.67 crore. The net profit margin was 10.7%, compared with 10.1% a year earlier.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 10.1% to ₹8,724.84 crore from ₹7,925.1 crore in H1 FY26. Total income increased 10.6% to ₹8,843.46 crore from ₹7,995.18 crore. Profit before tax rose 32.7% to ₹1,200.04 crore from ₹904.65 crore. PAT increased 94.7% to ₹1,542.97 crore from ₹792.67 crore, while basic EPS rose 95.2% to ₹58.59 from ₹30.01.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹23,207.48 crore, compared with ₹20,434.0 crore at 31 March 2026. Total equity rose to ₹10,907.58 crore from ₹9,405.86 crore, while cash increased to ₹2,166.94 crore from ₹1,512.59 crore. Borrowings fell to ₹903.14 crore from ₹2,162.54 crore. Inventories were ₹5,351.34 crore, trade receivables ₹1,078.25 crore and trade payables ₹2,715.77 crore.

H1 FY27 operating cash flow was ₹3,107.59 crore, compared with negative ₹98.82 crore in H1 FY26. Investing cash flow was negative ₹963.24 crore, compared with negative ₹679.75 crore, while financing cash flow was negative ₹1,517.05 crore against positive ₹188.93 crore. Capital expenditure was ₹1,485.14 crore in H1 FY27, compared with ₹1,001.15 crore in H1 FY26.

How has Welspun Corp done over the last 8 quarters?

Revenue has risen year on year for each of the last six quarters and reached ₹4,643.72 crore in Q2 FY27, its highest point in the reported series. Q1 FY26 was the lowest at ₹3,551.49 crore. The latest quarter was above Q3 FY26’s ₹4,532.48 crore and Q4 FY26’s ₹4,312.56 crore.

PAT reached its series peak of ₹1,047.88 crore in Q1 FY27 before falling to ₹495.09 crore in Q2 FY27. It had bottomed at ₹349.16 crore in Q1 FY26. The EBITDA margin peaked at 17.0% in Q1 FY27 and stood at 15.6% in Q2 FY27, above 13.5% in Q2 FY26 and 11.7% in Q4 FY26. Profit has risen year on year for each of the last two quarters.

Which businesses drove the quarter?

Steel Products reported Q2 FY27 revenue of ₹4,462.47 crore and EBIT of ₹571.63 crore, with an EBIT margin of 12.8%. The filing did not provide the year-ago segment revenue or EBIT figures needed to state growth rates. It also did not state a reason for the segment’s performance.

Others, including plastic products, reported revenue of ₹181.25 crore and EBIT of negative ₹43.51 crore, reflecting an EBIT margin of negative 24.0%. Year-ago segment revenue and EBIT were not provided, so no year-on-year comparison was stated in the filing.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also approved the re-appointment of Manish Chokhani and Anjani Kumar Agrawal as independent directors for second four-year terms, effective 2 February 2027 and 1 April 2027 respectively, subject to shareholder approval. No dividend or fund-raising decision was included in the same-day filings.

The board approved up to USD115 million of capex for an additional spiral HSAW pipe facility at Little Rock, Arkansas, with proposed capacity augmentation of 225 KMTPA and an operational date of March 2028. It also approved total Jordan project investment of up to approximately USD125 million, funded in a roughly 50:50 arrangement with Perma-Pipe, and an India IFBE coating joint venture with estimated total investment of up to approximately ₹110 crore, shared in line with the 49:51 ownership.

What did Welspun Corp's management say?

Management maintained FY27 EBITDA guidance of ₹2,850 crore and said H1 delivered ₹1,538 crore, with second-half visibility supporting achieving or exceeding the guidance without raising it. It reiterated FY27 ROCE guidance of more than 20%, against H1 annualised ROCE of 22.7%, and said domestic DI pipe volumes for FY27 would be substantially lower because of Jal Jeevan Mission and budget headwinds, with the mix shifting towards exports.

Management identified demand in US LNG exports, AI data-centre pipelines and oil and gas capital expenditure as areas of opportunity. It said risks included Middle East supply-chain, logistics and freight disruption delaying Saudi orders; Indian domestic demand, especially water, coming under pressure from central budget constraints; order timing being calibrated; and hydrogen pipeline demand slowing. It also cited European freight costs and tariff rules affecting WSSL exports, alongside muted domestic volumes.

How did Welspun Corp shares react?

Welspun Corp’s shares fell 1.9% from the previous close to the close of the first session that could trade on the filing, with a reaction-day decline of 1.9%. The stock was down 1.0% after five minutes, 0.8% after 15 minutes and 1.8% after 30 minutes from the price when the filing appeared. By the next day’s close, the stock was down 9.4% from its pre-results close.

The Iron & Steel Products industry’s median move was 0.0% on the reaction day and negative 1.0% by the next close, leaving Welspun Corp 1.9 percentage points behind the sector on the reaction day and 8.4 percentage points behind by the next close. The Nifty Smallcap 250 rose 0.7% on the reaction day and fell 1.3% by the next close. Earlier reaction-day moves were negative 1.2% on 24 July 2026, negative 4.2% on 21 May 2026 and negative 1.5% on 30 January 2026.

How did other Iron & Steel Products companies do?

Among 26 other Iron & Steel Products companies that had filed for the quarter, the median revenue growth was 25.5% as of 4 November 2026. Five peers grew more slowly than Welspun Corp and 21 grew faster. Of the 31 peers for which profit was compared, 20 reported higher profit.