Welspun Corp Q4 FY26 Results (NSE: WELCORP)
Signal: Growth decelerated
The read
Q4FY26 standalone PAT of ₹370 Cr (-47% YoY) reflects base effect from prior year's exceptional gains; core operating EBITDA margin held steady at 11.7% as raw material tailwind offset higher employee and other costs. Full year revenue grew 20% but PAT fell 15%, dragged by lower other income and higher tax. The company completed capacity expansions at Anjar and Bhopal and sold its stake in Clean Max Dhyuthi to a promoter group entity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,312.56 Cr | 9.9% | -4.9% |
| EBIT | ₹410.77 Cr | 10.1% | |
| Net profit | ₹370.36 Cr | -47.0% | |
| EPS | ₹14.04 | -47.3% | |
| EBIT margin | 11.7% |
P&L walk
Q4FY26 revenue grew 9.9% YoY but PAT fell 47% due to base effect of prior year exceptional gains; core EBITDA margin held at 11.7% as raw material tailwind offset higher employee/other costs.
Key positives
- Revenue grew 9.9% YoY to ₹4,312.56 Cr, the fourth consecutive quarter of YoY revenue growth after a dip in Q1FY25.
- Gross margin expanded 156bps YoY to 37.9%, driven by lower raw material costs (62.1% of revenue vs 63.6%).
- Finance costs declined 44% YoY to ₹48.95 Cr, aided by debt reduction and lower interest rates.
- Full year revenue crossed ₹16,770 Cr (+20% YoY), reflecting strong order execution.
- Share of profit from JV/associates nearly doubled YoY to ₹106.58 Cr, led by KSA and other investments.
Key concerns
- Net profit declined 47% YoY in Q4FY26 and 15% for full year FY26, impacted by lower other income and higher effective tax rate.
- Employee costs grew 20% YoY, outpacing revenue growth, indicating margin pressure on cost front.
- Other expenses rose 15.7% YoY, increasing as a percentage of revenue to 18.8% from 17.8%.
- FY26 PAT margin (attributable to owners) fell to 9.6% from 13.6% in FY25, despite revenue growth.
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